Money Saving Tips: Can’t save money because the salary is low? Then keep an eye on today’s report to remove your thoughts. Today you will be told how you will be able to save a good amount of money even with a small amount of money.
How to divide salary
To manage savings and expenses properly, it is important that they are divided properly. You can divide your salary in the ratio of 40:30:20:10. This will help you manage expenses and savings properly. Along with this, you will also be able to prepare an emergency fund for the future.
40:30:20:10 ratio means that the salary is-
1. 40%- Keep it for essential expenses
2. 30%- keep it for your hobbies
(like watching a movie, going somewhere)
3. 20%- Keep it for emergency fund
4. 10%- keep it for investment or savings
Understand with example
If a person’s salary is 30 thousand rupees per month, then keep 40 percent of 30 thousand i.e. 12 thousand rupees for essential expenses. Keep 30 percent money i.e. 9000 rupees for your hobbies like watching movies, roaming with family, traveling etc. You can keep 20% of the money i.e. Rs 6000 for emergency fund. Which you can use in case of any emergency or financial crisis in future like serious illness, job loss etc. Keep the last 10% money i.e. Rs 3000 for saving or investment. You can invest this in a secure platform like post office scheme or in an unsecured platform like SIP.
Not only that, you can invest in FD. Insurance cover is provided by the government body DICGC on FDs deposited in banks. This insurance covers every investor’s FD up to Rs 5 lakh, recurring deposits i.e. RD, savings and current account deposits in case of bank default. Under this plan, both the principal amount and interest are covered. The purpose of this insurance is to protect the interests of investors in case of bank default.