Investment Tips: Even before the salary comes, it is decided where the expenses will be spent. You too must be thinking this many times, I wish! If you had saved some money from your salary, you would not have faced any problems for a month. Well, you can easily overcome money problems. For this you just need to know 5 secret formulas.
YouTuber Ankur Wariku has told 5 such secret formulas in his shorts, which as soon as you adopt them, your pocket will automatically start filling. By following these tips every month, you can increase your savings and investment.
First Formula – 50-30-20 Rule
As soon as the salary comes, divide it into three parts. Keep the first part of 50%. Spend it on needs. Add to this rent, ration, electricity bill, children’s fees, medicines. After this, keep 30% for your other expenses. In this you can add the expenses of going out for dinner, eating out, shopping, movies etc. You can add 20% directly to savings and investments. Add fixed deposits, mutual funds, gold to this. With this your bank balance will not reach zero and you will also have savings.
Suppose your monthly salary is ₹ 50,000, then keep ₹ 25,000 for needs. After this, keep ₹ 15,000 for other expenses and invest ₹ 10,000 directly. With this, you will automatically save ₹ 1,20,000 in 1 year.
Second formula – Make emergency fund for 6 months
Suppose, if your monthly expenditure is ₹ 40,000, then always keep at least ₹ 2,40,000 in the bank. This money can be useful to you in emergency. For example, if you lose your job, suffer a major illness or your car breaks down, you can use the emergency fund. This will save your salary and only those funds which you have kept aside will be used. Keep this fund aside only after calculating your monthly expenses. Try to keep this money in a separate account so that you do not spend unnecessarily.
Third Formula – Use only 30% of credit card
Many people spend credit cards very carelessly, due to which they have to suffer the consequences later. If the card limit is ₹ 1,00,000, never spend more than ₹ 30,000. This keeps the credit score good and does not burden the interest. Pay the entire bill on time every month. It is very important to understand that credit card is not your enemy but your friend, so you can use it wisely.
Fourth Formula – Eliminate the most expensive loans first
If the personal loan is at 18% interest and the home loan is at 8%, then focus on repaying the personal loan first. Suppose you repay your personal loan of ₹ 5,00,000 in 3 years, then ₹ 2,00,000 interest will be saved. Make 10-20% extra payment every month. You can also use your bonus, incentives, freelance earnings to repay this loan. Apart from this, also check the pre-payment charge.
Fifth Formula Rule of 72
From this you will know in how many years your money will double. Suppose you are getting 12% interest on your money. Now if you divide 72 by 12, your money will double in 6 years. Apart from this, if you are getting 8% interest then by dividing 72 ÷ 8 your money will double in 9 years. Apart from this, if you are getting 15% interest then by dividing 72 ÷ 15 you will get double the money in 4.8 years and if you are getting 18% interest then by dividing 72 ÷ 18 you will get double the money in 4 years.
