Show me the money

Want to crack a few financial mysteries? Let Sayali Rai, founder of FinCocktail, share a few tricks to turn your money around.

- Sayali Rai

It doesn't matter if you are crunching numbers at a desk or organising the coolest events for your livelihood, the fact is that all of us need to be able to manage our finances better and secure our future. To make this simpler for all of us, let's start by tackling this by income.

FOR BEGINNERS

If f you are earning just under ₹5 lakh per annum (LPA), you have to focus on embracing the budget, enhancing your emergency fund, and becoming besties with SIPs (Systematic Investment Plans).

Let's be honest, you're not going to get anywhere unless you craft a beautiful budget (practical too) and stick to it! List down all your expenses and use the 50-30-20 rule to guide you. According to this rule, not more than 50 per cent of your income should go towards needs such as rent and electricity; not more than 30 per cent to wants, like travel and shopping; and AT LEAST 20 per cent should go towards your investments. Now, at this stage with a limited income, this may be difficult, but that is your ideal, so start working towards it. You also need to carve out an emergency fund, which should be made up of at least three to six months of your monthly income, stashed aside in a different savings account (that you don't touch). This is in case of, duh, an emergency like if you get laid off!