Many a times I have heard people say that “don’t earn sufficient money” so that can not save etc. and my income is so low, I could not even think about financial planning, Sorry this is PURE BULL. I am sure that you will know a lot of people who in the last few years have managed to retain their jobs even with pay-cuts and also managed; the reason quite simple, they had cut down their discretionary expenses and that are what needs to be done.
Remember, “Incomes are always never higher.”
Most of have grown seeing the following equation
INCOME – EXPENSES = SAVINGS
Personal Financial Planners are not just for Wealthy people.
Every individual can benefit from objective help to create, grow, accumulate, and utilize wealth one’s personal goals, family goals and other lifestyle objectives systematically without any anxiety. We can guide individual to achieve their ultimate aim of spending retired life peacefully without compromising living standards.
Let me ask you a very tricky question “Can you live with 90% of your salary”
Answer this honestly. Don’t be rush, think about it and then answer this very important question. If you get a salary cut of 10% and you have to live with 90% of your salary, how will it affect you? I will see some important insight on spending habit and psychological issues.
Most of the people do not save anything at the end of the month and the biggest reason is that they are not left with anything (as they say). “Supply creates its own demand”, This applies to Personal spending also. When we have money in our hand we will come up with all the reason why we have expenses and why we can’t with any money less than that . Answer these following questions.
If you get a salary cut by 10%, will you be able to
– Pay your Rent
– Meet all the household expenses
– Pay your children fees
– Spend on all the important things like Entertainment, eating out ,occasional splurging etc .
I can bet that most of you will have answer in YES!! . If people control and prioritize their spending, It totally possible to live in 90% of salary. Just close your eyes and imagine a situation that you are now earning just 90% of your regular salary. Small savings can make up large chunk of investments. If you try to answer the above questions, the answer would be a YES for almost all of you . There can be some exceptions, but i am talking about majority.
For some people, they may require cutting on totally useless stuff and reducing expenses on something which can/should be reduced.
- If you see go out 5-6 times a month , reduce it to 3-4
- If you see 5 movies a month , reduce it to 4
- Anything where you can do with less spending.
Does saving 10% means that you start living a frugal life
We don’t save because we think we cant save . Whereas if you try its totally possible. Just to try do this next month
– When you get your salary , take 10% out of it and deposit it in some other account and try to live with 90% of your salary , see what all your are missing and if you are facing some difficulty or not.
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