Many salaried persons always wait for their next salary as there are many expenses, credit card bills to be paid off. They don’t know how the salary gets over so quickly before the month ends. Does this situation sound familiar to you? If yes, then this can be safely assumed that you do not maintain accounts or you do not stick to your budget.

It is very important to keep discipline in your expenses and stick to it come what may. Yes, you can always avail a credit card and that can be used in times of need. But if you keep using the card a lot, this brings you more debt. Hence it’s wise to be ready with a financial plan.

You need to resort to budgeting, listing down your debts and your sources of income.  Listing a budget will help you understand your basic expenses. Using the credit card should be for rare occasions as it is borrowed money which has to be repaid back to the Bank/NBFC. The credit card must be safely kept only for emergencies and also your debt must be always in check. You need to keep a good balance between your income and debt.

Your expenses are divided into 3 parts;

• Fixed expenses like house rent, EMI, Transport, Education, Maintenance etc. where you have to spend a certain amount and cannot reduce it very easily.
• Semi variable expenses like utility bills where you can control the usage and reduce the expense.
• Variable expenses are towards impulsive buying and fast food consumption where you purchase it at the heat of the moment.

These expenses once jotted down will help you to wipe those unnecessary expenses away. You can save a lot of money by being disciplined.       These savings can be invested in many options like the stock market, gold, saving schemes like fixed deposit, Public provident fund, bonds and debentures, real estate etc.

You can always apply for a personal loan and a credit card to tackle urgent expenses. But it’s best to plan and be disciplined in your financial planning so as to make the most out of it.