Some of my office collegues were planning for a weekend outing at the end of the March. We were 5 of us, but 1 person denied because he could not afford to go out at the end of the month. When we asked him, he said his salary Ends before the month ends. Now this is not the case for only my collegue, a lot of people face this problem.
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The problem is we spend much more than our salary and thus we don't have any thing left at the end of the month. A lot of people spend around 60% of their salary as EMIs and if there is one month where there is excess then the subsequent month would be tough. Along with that people buy a lit of stuffs using their credit card and when they have to pay the credit card they don't have the money for their regular expenses. And the cycle continues.
There is a different scenario too, one of my friend invests 40% at the 1st day of the month and thus he have 60% for his expenses. And if the expense is more, he ends up not having anything at the end of the month. But the good thing is, next month also he invests 40% and he tries to cut of the expenses to manage. This is somewhat good approach because you are investing before than your expenses and then if your salary Ends before the month end it's a good thing.
Actually it's personal finances, for most of the people it's because of the EMIs that your salary Ends. But if you are the other type then your are doing very well. But if you are the first type, try to find an exit from the EMI as soon as possible.
Posted Using INLEO
