Even low salaried employees can save money by following this rule

Personal Finance: It is essential to possess a solid financial understanding, whether you are earning a salary or managing a business. A strong grasp of financial principles not only enables you to save effectively but also allows you to accumulate significant funds over time. These funds can contribute to your wealth in the future and assist you in achieving important goals.

However, it is crucial to recognize that there are no shortcuts to financial success. Earning money requires dedication, patience, a sound investment strategy, comprehension, and discipline. In this context, we will share valuable tips that can help you build a substantial financial reserve in the future.

50-30-20 rule

One fundamental principle to be aware of is the 50-30-20 rule, which serves as an excellent guideline for personal finance management. By implementing this strategy, you can effectively allocate your income towards essential expenses while planning for your financial objectives. According to the 50-30-20 rule, you should allocate 50% of your income to necessary expenditures, 30% to entertainment, and invest the remaining 20% wisely.

20-10-12 rule

If you enjoy a substantial monthly income, consider following the 20-10-12 rule for your investments. This approach entails investing ten thousand rupees annually for a duration of 20 years, with the expectation of achieving an estimated annual return of 12%. By adhering to this strategy, you could potentially accumulate approximately Rs 99,91,479 over the 20-year period.

Additionally, it is advisable to explore opportunities for generating supplementary income alongside your primary job. Potential avenues for earning extra money include freelancing, blogging or creating a YouTube channel, generating rental income, or selling online courses and e-books.

Disclaimer

This is general information based on available online sources. Please verify before making any transactions. Times Bull is not responsible for any financial investments made, as it is entirely your responsibility. For better results, please consult a financial advisor.