9 Tips that can Help You Manage Your Salary Better

Salary Negotiation
Provident Fund
21 Oct 2022

In the world of consumerism, we all are struggling hard to lead a pleasant life within a limited budget. In the times of recession and inflation leading an economical yet affordable life can become a daunting task. Therefore, one wants to be financially stable and earning more money. Even though earning is crucial but it is equally important to learn how to save or spend your monthly salary. So, taking time to manage your salary can really pay off. It can help you to not only pay your bills on time but also save some decent amount of money at the end of the year.

This will definitely help you to be burden free. You can now easily travel to your dream destinations or pay off the debts or buy yourself a new car or any other expensive gadget. All you need to do is to make a list of your expenditures and prioritize them. You should plan everything and control your expenses. You should always decide on a fixed amount that you can put aside each month so that you don’t have to worry about an extra expense for any special occasions like lavish birthday parties or wedding anniversary dinners.

Here are some simple tips on how to manage your salary better: 

Tip # 1: Say 'no' to credit cards

Don’t use credit cards because it's easier to simply forget about your limits. Try to purchase things through cash as this will not allow you to spend beyond your limit. When you don’t use credit cards for purchasing items, you get a chance to clear all your debts. 

Tip #2: Think before you shop

Before you go shopping, make a list of only essential or vital items that you need to purchase. If you stick to the list and not go beyond it, there is no doubt about the fact that you spend your money wisely and also save it. Moreover, in the time of online shopping site and online ads on can easily fall into the trap of deals. Therefore, it is best to stay away from the "deals" in online shopping as much as possible. You end up buying what you don't need.

Reduce your expenses on unwanted or non-essential items. When your budget is tight and you are trying to save money you have to be very strict while spending money on costly items. 

Tip #3: Take the affordable subscription

Subscribe for cheap and affordable television subscription and mobile plans. It is best to stay connected with your friends and family via the internet instead of increasing your phone bill. 

Tip #4: Look out for discounts

Plan out your weekly food bill and buy only those food items which you actually need. Look out for discounts and check out for special offers. This can save your money. 

Tip #5: Avoid eating out

You can go drinking with your friends once in a while and blow Rs 2000 in one night. That's ok for once a month, but every week is a waste of money. Instead of eating out or ordering food from various app every day, one can cook food at home or maybe take a lunch box to office. 

Tip #6: Affordable Vacations

If you are used to going on vacations every year to exotic and expensive locations, you have to consider it and make it a point that your vacation takes place somewhere that is affordable and cheap. 

Tip # 7: Tax relief benefits

Check whether you are able to gain profit from the tax relief benefits up to Rs 1.5 lakhs. Moreover, if you are unemployed, widowed or disabled make sure to get all the advantages of the social welfare claims. 

Tip # 8: Provident Fund

Provident fund is one of the best investment for saving for retirement. While switching jobs, you should ensure that the balance accumulated while working with one company is getting carried forward to your next employer. Actively check PF balance and transfer your PF when you change employment. 

Tip # 9: The golden yet the simple rule to manage your salary

There is a simple rule for saving 20:30:50 which means 20 per cent take home salary is for goals, like buying a car or bike, maybe a trip you're planning, 30 per cent for forced saving, like recurring deposit, SIPs, etc., 50 per cent of the take home salary is for all that you need.

There are a few apps that you can use to save money as well. There are several useful things you can obtain when you're using an app. By using an app you can not only keep a check of your expenditure, but you also have a visual reminder that prevents you from exceeding your limit. Here are a few apps that you can use.  

  • Mint 
  • Mvelopes 
  • Crown it 
  • Encash it 
  • Splitwise 
  • LazyPay 
  • CashKaro

Investments are another way you can make smart money. You stay ahead of inflation, and it can also help you build your pockets. And if you have other financial goals that you need to meet, investments are a smart and quick way you can approach those goals. Not to mention, you also can save on taxes as well. If you're someone in your 20s looking to make an investment for the first time, do consider some options to make the right decision.

#1. Stocks

By Investopedia's definition, a stock is a share in the ownership of a company. They are equity in any company. And even though stocks are unpredictable, many investors consider them as good investment options. They can give you high gains or very deep losses and they all depend on how that particular stock or the company is performing in the market. Stocks mean taking risks and by taking risks you can make good money, but even if you don’t, with age on your side, you will learn from your mistakes and invest in a smart way.

#2. Mutual Funds

If you are planning on investing in your 20s, you have the advantage of your young age, left to see your wealth increase. You can choose to invest in money in one go or choose a Systematic Investment Plan (SIP) through your bank. If you see that you fund is not doing well in the market then you can switch over to a better fund. The massive growth in number of mutual funds gives them an equal weight with other top investment options in India.

There are other options as well such as bonds, post office savings schemes, provident funds, corporate fixed deposits, initial public offering, bank fixed deposits, and investing in gold.

If you make it a point to follow the above-mentioned steps, it will undoubtedly help you manage your salary better. Then it can indeed bring a big difference in your life and it will become easier for you to save money. You don’t have to worry also during any crisis or emergency situations. Now, you can lead a tension free life and enjoy every bit of it.

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