What is the article about
If you are a salaried individual, there must have been times in your life when you have needed to split up your salary into parts so that that budgeting would be more convenient. Most good budgets involve splitting your salary into different sections which are assigned different financial purposes. This article will provide you with a deeper insight into how you can divide your salary based on your financial plans and needs.
Who is this article for
Saving money and budgeting is a crucial feature of today’s lifestyle, no matter what class of society you belong to, in today’s financially competitive environment, the rich want to get richer and so do the poor. Having a functional budget and knowing how to divide your salary can help you go a long way towards being financially secure and knowing that you have a future where you do not have to struggle because of monetary problems. This article is for anyone who wants to know how to divide their salary so they can have a sufficient budget which will help them reduce their cost of living.
The message we want to give
50-30-20 ratio: The most effective way of saving money is by dividing your salary according to the 50-30-20 ratio. 30% of your salary should go towards keeping it in a savings account. 50% of it should be for your day to day expenses, and the rest 20% of it should be stowed away for emergencies.
Tax deductions: Making sure that your account for tax deductions is extremely necessary. If you are earning a taxable income, make sure you know how much of your salary is getting cut for taxes before you start planning and creating a budget.
Debt clearance: If you are in debt or have unpaid bills, do not forget about them and tell yourself that you will pay them later. Always take a part of your salary out to pay off your outstanding debts or loans. If you let them build up, it will be a mammoth task to clear them off later.
Investment: If you are earning a reasonable amount and have money left over from your salary after budgeting and saving, make sure you know where to invest it. Find investment opportunities that will help you get a steady rate of growth on your money. Land, gold, oil, etc. are great sectors to invest your money.
How can you benefit
You can read this article and get a higher perspective on your financial habits. This article will help you change the way you organize and budget your money better than you ever could.
A good knowledge of your finances will help you make better money decisions.