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Budget Matters

Written by - Akshatha Sajumon

June 11, 2019 4 minutes

(Don’t Stash That Cash)

Budget matter

“Always stay rational.”

—Warren Buffett

We Indians start thinking about what to invest in – should I buy a plot of land, or should I buy shares, or should I invest in a pension plan to solve our money problem? Everybody has money to save- from the poor woman who sells veggies on the roadside to those who just don’t know how to look for it.

Manage your expenditure by dividing them into different accounts such as:

Money drops in each month and the living cost kick in immediately: rent or EMI gets debited; domestic help salaries get paid; utility bills are done; groceries are bought; fees paid; travel costs are ongoing daily expenditure and so does shopping gadgets, eating out, movies. The rest goes to the credit card bill. A lot of money conversation begins with effective budgeting. We are told to write down every rupee we spend. And this process is monotonous and boring. So here is a classification that will help you to deal with your finances better.

Type of account



Income10%-15% can be maintained as a cash reserve for daily expenses.Salary revived, rent received, dividends earned.
SpendingNot more than 45%-50%.EMI, credit card bills, Utilities
SavingAt least 15%-20%Set aside for investments

Let’s look at the above table in detail:

Once your salary hits your income account, within thirty minutes (OK take a day, but do it) move your monthly expenditure to your spending account.

Spendings should not be more than 45%-50% of your income. The salary (Income account) account is always a zero balance account so sweeping money is all possible.

So, at last, you would be able to manage savings of at least 15% to 20% excluding all your spending. Where you can utilize this money for your further investments.

Is it okay to have a joint account?

Type of account



IncomeYesNoIt’s good to have a separate Income Account in case your partner is not helping and not supportive
SpendingNoYesSpending can be a joint account where both of your credits can equal your monthly spendings
SavingYesNoEach will have different savings account it can be joint, where the primary holder should be the same on whose name investment will happen.

You have a three account system that separates your income, spending, and savings. Where you can analyze your income accordingly you would be able to figure out how much to spend. And by that, you would be able to wisely invest the amount and yield your profits from the invested rupees.

What do I do with my savings?

At a point when individuals retire they will either receive no salary or encounter a decrease in it. As a solution, opting a pension scheme would help you to save a good corpus for your old age, thus providing financial security and freedom. One should invest in NPS (NATIONAL PENSION SYSTEM). The national pension scheme is initiated by the central government. This scheme is where a person needs to invest in a pension account at regular intervals when the employee is working. This program is open employees from private, public, and even for those who are working in the unorganized sector. After being retired the person can withdraw a certain amount of percentage of their funds. Wherein the person gets benefit under section 80C and section 80CCD. This scheme is portable across all the locations.

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Fisdom is the best destination where one can think of investing their savings in a systematic manner. Fisdom gives the option to invest your funds into NPS scheme and various other options such as Mutual Funds, Term Insurance or Digital Gold that suit your investment horizon and risk appetite.

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