What To Do for Strengthfull Finances

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What To Do for Strengthfull Finances

Good financial planning should include details about your cash flow, savings, debt, investments, insurance, and any other elements of yours.

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Financial planners advise clients on how best to save, invest, and grow their money. They can help you tackle a specific financial goal—such as readying yourself.

When it comes to handling the money matters, knowingly or unknowingly, we all do some degree of financial planning to manage our money in the best possible way. Some are very good at budgeting, while some have less understanding of the intricacies involved. So how good are you in budgeting and managing your finances?

You can easily find out that. Just try answering one question to measure your money-managing capability.

Is your salary sufficient to meet your monthly expenses?

    Option 1 :  No, by end of the month, I fall sort of money

    Option 2 :  Yes, it is just sufficient

    Option 3 :  Yes, after meeting expenses, I even save.

So, which option is relating to you? Whatever option you choose, there is always a way out to improve your finances. Check out to know more.

Option 1 : End of the month, I fall sort of money

If you fall under this category, then it means you are spending more than earning. In other words, you are not living within your means or not doing proper financial management.

What Should You Do Next? 

  • Find out what is inevitable: First of all, use your income only to meet your non-discretionary or fixed monthly expenses such as Grocery, Transport, Rent, EMIs, Bills, Premiums, etc.

  • Prevent overspending: If after your non-discretionary expenses, you are still left with something, then you can use it for your discretionary expenses. However, you also should be saving, so avoid overspending your money on unwanted luxury expenses rather try to save something.

  • Even if it's little, Save: Rule of thumb says, one should save 20% of their income for future. Therefore, eventually try to reach that 20% benchmark.

Tip: As soon as possible try to get rid of your debts.

Option 2: I somehow manage to meet my expenses

If you fall under this category, then it means you are on the threshold. You are probably managing your expenses somehow, but not saving for the future.

What Should You Do Next? 

You need to smartly bifurcate your money to manage your present and to secure your future. Follow 50/30/20 rule of thumb.

  • Use 50% of your salary for your inevitable necessities like Grocery, Transport, Rent, EMIs, Bills, Premiums

  • Use less than 30% of your income for discretionary expenses like entertainment, dining out, clothing etc.

  • At least 20% of your income should go towards savings. Tip: If not saving enough, then try to limit your discretionary expenses: There is always room to cut down your luxury expenses. You can have a 'no eating out' week or month.

Option 3: After meeting expenses, I even save

If you fall under this category, then it means you are managing well because you have control over your spending. The best thing is you have managed to save, but that is not enough.

What Should You Do Next?

  • Step-up from Savings to Investments: Money lying in your savings account doesn't grow. So take the next step - start investing your money for Wealth Creation and Inflation beating returns. Link your financial goals like Home Buying, Children Future, Retirement, etc. with your investment plans. Idea is to save and invest for a goal. This is how you remain systematic and dedicated to your saving habits.

  • Asset Allocation: To invest in the right manner, spread your money across various assets like Liquid Cash, Fixed Deposits, PPF, Mutual Funds, Govt. Securities, etc. Create a mix of secured investments plus investments with higher potential of returns.

  • Plan Your Tax: Investment helps you in saving tax. Thus chose financial instruments that give tax benefits along with wealth creation.

  • Get Adequate Insurance Coverage: Life and medical emergencies can dig a big hole in your savings. In face of such emergencies, usually, people fall short of adequate money. Just glide over this tricky situation by insuring your life and health. This way you can ensure the financial security of your family.


No doubt that your investment capacity largely depends on your earnings. But whatever you are earning, you should try to save something for your future. Once you develop the habit of saving and succeed in accumulating some considerable savings, then you should start investing by rightly allocating your money across various assets. Investment is a well-tried practice to strengthen your finances. However, to keep your finances strong, you should also get proper insurance coverage as it is the only way to be adequately financially ready for life emergencies.