Say u earn 17L yearly post taxes, how much from this u want to absolutely save and accommodate rest in the bills/entertainment/misc. Or u don’t budget on yearly basis but monthly? But then how would u account for payments like insurance which are yearly? Just want to understand if u guys do the budgeting and secure some part for saving/investment at all cost? I assume u use excel for this, do share if anything else
Even yearly commitments should be budgeted monthly. I normally put money every month for the annual premium (e.g. if you have a 1 lakh premium you put aside 9k a month in a recurring FD that matures in time for the premium payment, or in a liquid fund). I also put money aside every month for vacations, so maybe 5-7k a month makes for a nice kitty when you plan vacations or flights home for Diwali.
I’d use bonus money (if that is part of comp) for larger goals. (e.g. I used my last bonus for a large paydown for a family commitment). You could use it to save for a down payment or a loan prepayment
I like the idea of budgeting it monthly. Would liquid or debt fund be better than FD/Recurring deposit ?
Tax wise I don’t think there is much difference for short-term. But I prefer liquid / debt funds since you have flexibility in how much money you can withdraw. FDs tend to be all or nothing
I started my journey when i was 22 and after 3 years my expenses and salad both increased
But when i look into it expenses are always around 20% of my salary
But i was never sure where to put this money I kept everything in my sala...
This should include everything from home bills, entertainment, medical expenses, trips etc. When I was single (back in 2016), my expenses were around 20k per month.
Now I easily go above 1L every month (without rent, we live in our ow...
20 K + 20 K in 2016 -> approx 35 K + 35 K = 70 K (assuming 7% inflation over 8 years). Extra 30 K can be attribu...
I found myself in a similar situation. I was hardly able to figure out whats going on. So this is what I did. 1...
Create an excel and make a habit of entering pareto expenses every month (The count would be at best 20 items). Fo...
Approximate expenses/savings in percentage of your or your family's(if you are married and both are working) yearly take home for the following categories:
I earn approx 1.5L per month
Currently splitting as below
Fixed expenses: 40k per month
Wants: 30k per month
Misc/emergency: 5k per month
Invest: 70-75k per month
Worried if I am over saving or being over frugal in my early years ?
