The thinking of people is about a better life is depends on money. Living a beautiful life should have more money has sat in people’s minds. But tell me, my friends, if we have more money but do not control where it is going. As a result, the money will go, and healthy life starts. Once you learn income management tips, no matter whatever earning, it will be possible to live a tension-free life.
You can grow income, enjoy a batter luxury atmosphere in life. Toady a unique content is waiting for you to read this. Don’t skip or don’t fast read. Read very deeply. I am sure you will take something from this advice that can uplift your finances.
Let’s pay attention to what are income management tips
If you are a new earner and planing to earn money in 2020. You can learn income management tips that will help to plan your budget and take enjoyment of precious life. I am going to share my rule that a person followed during starting earning years.
The rule is 50 , 20 , 15 , 15
50 means 50% of your total income, then 20%, 15% or 15% part of income.
I chatted with a friend that worked in an irritation department, and the monthly revenue was $700. He used 50% part of his earning to spend on necessary needs or bills. It includes grocery items, daily useful things (eating, body care stuff, rent, or all bills. That means $350.
You can use 50% of your salary for mandatory items. Buying clothes, pay electricity or water bills as well as add more household items that apply in the present. Some folks eat less to save money, for the food, we should not compromise.
Moreover, That does not mean eating fast food or junk food in hotels, restaurant. Always healthy eating items invites calm or well being. For a better life, health is the main issue. So food should be hygienic or digestible that will help to serve you a fit body or save from digest. From 50%, eating habits should be good, like dry fruits, vegetables, fruits. Products that come directly from nature. I listened to elders, a rich man that has a fit body.
That is 100% true. If you use 50% of income to a healthy diet or necessary items you will have a better life or happiness, why you are spending money according to budget or eating healthy items.
YOU CAN SPEND 50% PART OF YOUR INCOME TO BUY NECESSARY ITEMS IN A CHEAP WAY
- Use a sharing room if you are alone otherwise, flats are best to save money.
- Wear cheap or buy clothes where the discounts available during any seasonal festivals or sales.
- Eat natural foods that offer a healthy body.
- Buy groceries from megamalls, outlets or online platforms which gives cash-back on credit cards as well as combo offers.
After, 20% part of the income he saved for wishes. According to his income, $140. Everyone wants some unique or fantastic gadgets or smart stuff. For instance, if you want a smartphone, Bluetooth speakers, laptops or watches, sunglasses, travel luggage or branded clothes. Then spend 20% of my income to buy passionate things. If a 20% part of income is low than the cost of the product, it can wait till next months and purchase items by adding 20% from the previous or 20% of the next salary or total will 40%.
Furthermore, 15% he saved for long term investment or 15% for short term investment. Above 5 years or till 20 years funds can many folds if you select investment options wisely.
- Mutual funds
- Stock Market
- Forex Market
- Real Estate
- Long-term Bonds
Left 15% part for Short term investment that returning period below from 1 year – 5 years. 15 % directly can invest in these fields. Additional earning source may generate if you focus on these areas.
- Savings accounts
- Short-term corporate bond funds
- Short-term US government bond funds
- Money market accounts
- Certificates of deposit
- Cash management accounts
My friend is living a better life whatever his income but planing before spending that gives the best direction to live a luxury life. His salary was $700. However, 50% ($350) was saved for useful household or daily needs, 20% ($140) gone to get his dreamful products or leftover 15% or 15% ($105 +$105) for investment. As a result, in upcoming days, he had doubled saving by investing in mutual funds or fixed deposits. He is a government employee or he has proved income management tips work.
The best example of income management, you have seen in this article. In a salary, you may live a colorful life. By using 50% to Good nutrition invites good health if a person is a well fit, they can earn money. The whole life is based on health. Then our 30% part of funds in investments generate more return. All wishes fulfilled by 20% part of income. In the end, the person has a budget over needs, desires, or investment by a job or fixed-job.