No matter how good our salary is, the future can be secure only when there is proper planning for spending it. Yes, if we do the right planning of how to spend the salary, then apart from making good savings for the future, we can fulfill all our needs. Most of the people do not know how to spend their salary and how to save it. There are some smart and simple ways, with the help of which we can make good savings from the salary...so let's know about them.

Salary Planning
Now the new financial year has started, so there is a change in the salary as well. In such a situation, if the salary is increasing this time, then manage the salary in such a way that you never feel a shortage of money. So for this, smart money management and correct planning are necessary. To manage the salary, everyone should follow the popular formula of 50-30-20. So then let us understand how we can secure the future by making good savings from our salary.

Salary Savings Formula
Everyone should know the popular formula of 50-30-20 for saving salary. According to this formula, 50% of it should be spent on essential things, 30% should be spent on lifestyle, and 20% should be fixed for savings and investment. Through this simple formula, you can make good savings even after deducting all the expenses from your salary, which can make you financially strong.

Make a monthly plan
As soon as your salary comes, you should immediately make a complete plan for the entire month's expenses. If you want that you never have a shortage of money in the future, then proper savings are very important for this. To save for the future, make a habit of saving first from the salary, then spending. When you get your salary, put 20% of it in savings. Saving 20 percent can give you good financial strength.

Preparation of emergency fund
Emergency can knock at the door of all of us at any time. So, in such a situation, it is very important to prepare an emergency fund so that you do not face any money problems even in an emergency. To prepare an emergency fund, first of all, create an emergency fund of at least 6 times your monthly salary. Keep this emergency fund safe in a place from where it can be withdrawn only when needed. You can choose options like a savings account or fixed deposit for emergency funds.

Burden of EMI

The burden of EMI often troubles everyone. Due to the burden of EMI, our entire financial planning gets messed up. So to avoid this, EMI should always not be more than 40% of your income. If there is an EMI on a house, car, or personal loan, then it should never be more than 40% of the salary. If you cross this limit, then you can get trapped in the debt trap to meet your essential expenses. In such a situation, controlling EMI is considered most important for smart money management.

When will the money double?
Everyone dreams of doubling their money, so if you also want this, then definitely follow the rule of 72. If we understand the rule of 72, 72 ÷ interest rate = in how many years will the money double? Let's assume if you are getting 8% interest, then your money can double in 72 ÷ 8 = 9 years. So if you want to double your money, then you will need to save at the beginning of the month.

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