Your first salary is best spent celebrating with friends and family. But there is a lot you can do with the money that you earn, from your second salary onwards.
Money management is not a difficult task, but an exciting opportunity to for you to dictate and direct your salary and your finances. The best time to learn about money management is when you are starting off.
When the job search comes to an end and the job begins, the radius of your life expands in every way possible. Take time to understand and learn the new-found financial responsibility that comes in the form of monthly salary. Get educated on income-tax and financial plans that help you with money management.
The most efficient way to save is to put money saving on auto-pilot mode by opening up a recurring deposit or a monthly investment, so that you don’t have to consciously keep the money from your salary aside every month. After careful deliberation of accessibility, return rates and lock-in periods invest in a scheme that suits your financial goals.
There’s no need to be afraid of debt, but understanding how debt and interest rates work is an extremely crucial part of managing money and saving you salary from credit card statements. Prioritize paying off debts with the highest interest rates. And in addition to the required minimum payment, keep chipping in with small frequent sums whenever you can afford to.
There are a lot of money management apps that’ll help you with your cash-flow, all you need to do is take the initiative to download them. Link all your accounts and keep an eye on how you spend your salary.
The more you know about the whereabouts of your salary, the better you’ll be able to manage it.
Spend time and money on what you love
Money management is not about piling up loads of cash somewhere in an account. It is organized distribution of your income. Your salary is no good if it doesn’t allow you to do the things you love the most. Have a fund dedicated towards developing your passion projects, or one for discretionary spending, and weekend- scenes.