Income, Expense and Saving

So what factors contribute to our Income, Expense and Saving?

$ Income:

• Salary or business income
• Interest earned on Savings and Investments (Including Bonus)
• Other Resources

$ Expense :

• Loans: Home, Personal, Car, Education
• House Rent
• Monthly Expense (Shopping, Glossary, Travel, Phone, internet & Light Bills , etc)
• Medical Expenses
• Emergency Expenses

Tips:

• Repay Principle of Loan as fast as you can.
• Clear old loans and debts.
• Don’t Use credit card  but if you need then use it upto 40% of your monthly Take Home Salary.

$ Saving & Investing:

– Saving to earn interest and Tax Saving.

• Term Insurance
• Mutual Funds
• PPF
• FD
• RD
• Bank Accounts

Tips:

• Go for Compounding Interest rates monthly than annually.
• Have only 1 or 2 Term insurance policy.