Welcome to the real world. It sucks and you will love it!
This famous line by Monica from F.R.I.E.N.D.S. the legendary sitcom, sums up our feelings. The feels of first salary and after the initial jubilation when the money goes kaput. The real value of money strikes. Earning is just a part of it, spending is another, but managing the finances is the main gig.
The average first take-home salary of a fresh graduate in India is somewhere between 15k to 25k. Now the question is how to manage in that meagre amount, when you have had the taste of luxuries throughout your childhood. Thanks to our parents.
That is when smart budgeting tips come handy. Have no clue how to go about dividing your salary? Start tracking your expenses, it is one way of keeping account of your salary.
When I started off with my first job, the first few months went adjusting to the fact that I am financially independent. When it dawned upon me, I started splurging without paying heed to the savings part. 4 years into working now I understand it is not only about being safe but wise too.
Whether you are a penny pincher, a spend-thrift or someone who is balancing between their expenses and savings. Managing money can be acquired as a skill. I personally, divide my month in three cycles:
The Red Phase: This is the most crucial stage as all my expenses (major utility bills, travel and savings) are earmarked to be paid in this phase. When the major expenses are out of the way. I divert to my second phase.
The Yellow Phase: This stage is comparatively less strenuous but still has the a sizeable chunk of everyday expenses. Such as perishable food items which can’t be bought a month in advance. This phase also includes my share of party, fun and shopping expenses, plus the pesky miscellaneous ones which pop out of nowhere.
The Green Phase: This is the most relaxed and also the most difficult to achieve stage. The money which is not earmarked for any expenses whatsoever. To get to this stage is most challenging and most of times I exhaust my salary in the second phase itself.
I begin my month with red phase so that I am not left with impending bills and an empty bank account. You can also devise a plan which suits your needs.
You can also take inspiration from these Delhi girls who are living alone in this city and doing a great job at it too.Check out how is life under 35k salary for single working women in Delhi. Take inspiration from these women to live life queen size, but first by securing a portion of your earnings.