How to Utilize your Salary Wisely


“The Art is Not Making Money, but Keeping It”

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If there is one thing everyone is running towards, it is earning money. Would you disagree? Obviously no. No one can disagree. Different people have different perspectives on life, which means different spending habits. You might perceive the future and save up, and at the same time, you might have a friend who only wants to live in the moment. This means you save up or invest for the long term, and your friend spends for the day. Our perspectives have broadened, and that is healthy. There is a wise approach to everything and now let us find out how.

Construct a Budget

Whether it is someone trying to save money in India or anywhere in the world, the first thing they would do is make a budget. Budgets are a wise decision for every salaried person, and if you do not have one, how would you manage your finances at all.

Goals, Destination, Future Objectives – Have Them

Rather than aggressively investing your money and maybe endangering your ambitions, build a framework for what you want to accomplish. You might divide your goals into long-term goals like stocks, equity, and mutual funds and short-term goals like liquid funds and then save your money accordingly.

Keep your Spending Under the Microscope – Don’t you Want to Analyze it?

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Keep track of how much and for what you spend your money, especially when it comes to personal expenses. Gifts and spontaneous purchases add up to far more than you realize. This is not to say that you shouldn’t indulge in a few creature comforts, but keep in mind that even reducing your spending by INR 500 might go a long way. What you spend today is what you deprive yourself of in the future.

Always Pay Up

Most credit lines, particularly credit cards, have interest or fees associated with them, and late payments further exacerbate the impact on your finances. You’re most likely borrowing credit because you need it in the near term, so once you start earning consistently, make it a point to pay these off first, not just the minimal amount. Alternatively, you might look into your choices and find credit lines that aren’t as hazardous to borrow from. Believe it or not, that’s one of the best ideas which will help you save money in India as you will not be paying interest unnecessarily.

Don’t Skip Cheat Day – You are Priority #1

Just because you’re making plans for the future doesn’t mean you have to forego your happiness in the here and now. Take a weekend trip or buy something you’ve been eyeing every now and then. As long as you aren’t splurging on a regular basis, these incentives will help you realize how gratifying it can be to achieve your financial goals.

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Got an Insurance?

Insurance, particularly medical insurance, is not a luxury; it is a need, and you should begin to think of it as such. A sudden medical emergency is the quickest way to get into debt, and having insurance shields you from that danger.

There are Needs and Wants

We live in a social media age where appearances matter a lot but don’t confuse what you desire with what you need. It’s fine to want something costly and even to buy it occasionally, but it doesn’t mean you need it. Food, for example, is a requirement, whereas food from a Michelin-starred restaurant is a desire. Every now and then, take the time to draw a line between the two. It’s astonishing how much money you can save this way.

Have you got a Surplus?

It’s the end of the month, and you have a surplus. Great! You may be faced with two options – Spend or Save and Invest

Option #1 has the potential to earn more money for you in the future. It is money from your salary that can add weight to your existing portfolio, even if it is only ₹1,000. Because you’ve handled your pay effectively enough to have a surplus, option #2 is yours. But if you squander it, it will be gone forever. In either case, investing the money may be the best option.

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Your Accounts Statements are Important

Examine your account statements every few months to look for patterns in your spending. It not only helps you discover if you’ve been spending more than you should for bills, but it also encourages you to consider finding more cost-effective methods to accomplish things, such as cooking at home instead of ordering in.

Back-Up – Your Emergency Fund

You may not believe you require it, but create an emergency reserve for a rainy day. It’s fine to start small by putting aside even INR 20 every day; you never know when you’ll be short on cash and, when that happens, you’ll be astonished by how far you can stretch money to cover your necessities.


Do you know where the first step has started to use salary wisely? It starts when you decide to start using your salary wisely. But these are some tips you can use to start the journey of making wiser decisions with your salary. Managing your finances wisely may be difficult at first. However, if you follow these procedures, they will quickly become a part of your monthly habit.