The study shows that over 60% people said that their Salary Ended before the month end. The problem is that we have a lot of commitments of the month and once we try yo clear that the money gets finished before the month ends and we don't have the money left.
https://youtu.be/dckbfQg-uUM
The problem is with EMIs and Credit card is that we really don't know how much we are spending and thus once we clear that the money left for the fixed expense gers lower and lower. We all know about the 50/30/20 rule but it doesn't work all the time. So what we have to do is to change according to the salary as well as your monthly expense.
If your income is less and if your fixed expense is more than you can change it to 60/30/10 which means 60% needs, 30% wants and 10% for investment. So even if the salary is less you can change as per your expenses but keep the investment intact. But we have to create a system otherwise we will not know where our money is flowing.
Like a daily coffee, food orders or eating out will take up a lot of our income. So to create a system, we have to create 3 bank accounts and then automate the expenses and move the needs, wants and investments to those bank accounts. If you don't have the money in the account then there is no way to spend it. To know about the fixed expenses as well as wants then you have to start budgeting for atleast 3 to 4 months and once you know the full amount then you can change the percentage as per your expenses.
Watch the video to know more about why your salary Ends before the month end and what you can do to fix it.
Posted Using INLEO