At the beginning of the new financial year, the process of increment in companies starts. Some companies have even started distributing increments to their employees. In case of increment, the salary will also increase. Now if the salary increases, then it is necessary to calculate the account of its expenditure. Today we will tell you how to spend the increased salary.
Financial planners believe that to secure the future, the emphasis should be on saving first. After this, it is better to set the calculation of expenses in the remaining money. For this the formula of 20/50/30 is also given.
The first part is 20 percent of the salary. It would be better if you keep 20% of your salary for savings. In this also 15 percent should be invested somewhere, then 5 percent should be for emergency fund.
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At the same time, 50 percent of the salary comes in the second part. It will be better if you remove this part for your and family expenses. It would be right to include the expenses of the month including the grocery, utility bill of the house in this.
– 30% of the salary comes in the third part. If you keep this part of the salary to pay off your loan, EMI or external loan, then it will be right. If you do not have any kind of loan, EMI or external loan then this is the best thing. In such a situation, you can add this amount with 20% of your savings. In this, maximum emphasis should be given on emergency fund.