In the modern world, humans use expensive products for comfort, but they do not learn to use and manage money. But managing money and using money has become an important process of life with which man gets rich or turns to poverty. When we start to manage the money we turn to get rich. But some people not give importance to managing money, they believe in enjoying life with the excessive expenditure on unwanted goods and services. And some people realize the importance of managing money to spend a happy life but there is not a real and good explanation of it.then we decide to discuss this topic. Then let's start,
first, we start with the assumption
normal uses of grocery (with or without family)
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let's start the main topic
how to distribute income for effective use
First, we discuss the important topics in the distribution. The name of this distribution formula is SIGRM. This formula contains
necessary products and services for home
maintenance of home and other
Saving important to grow financial situations. Saving is one of the best parts to do in life for a happy and comfortable life. Saving help in the bad financial situation.saving use at the time of retirement.
The main purpose of saving money for retirement.
Use saving money only when the money in the general reserve is not sufficient.
Saving money account use nationalize bank and do regular RD(recurring deposit)
also, use this money for making assets like home and any other safe investment
percentage of saving :
only saving get a share in your income of 10%
ex: 25000 INR per month salary, use only 2500 save every month
(2) personal salary (50 % invest 50% uses):
Personal salary is also important for enjoyment in the current life. Some strict income planner does not include personal salary in their income managing plan. Personal salary use for personal uses like movies or any other.
Personal salary budget use for personal expenses like any premium plan subscription and movie house tickets.
Personal use money get after every plan complete stage
Not get advance money from next month's salary for personal use.
Save money for future personal plans is allowed
percentage of personal salery :
personal salary get the share in your income of 15%
2500 INR (we recommend 1250 invest regular and 1250 uses)
(3)necessary products and services for home:
Necessary products and services needed for running life and home family.because without any necessary products and services humans can't live.it's a necessary to add the needed product to the budget get in this formula.
Products and services also categories as per wanted and unwanted,
use only the most wanted goods.
Include electricity and other charges like water bills, etc.
percentage of necessary products and services for the home:
40% share accumulated by the necessary products and services for home
10000 per month
(4) general reserve
The general reserve is also an important part of the budget formula. General reserve useful at the time of bad financial situations. The General reserve minimizes your harm damages. General reserve works at the time of a huge amount of medical.
General reserve use only at the time of emergency.
Also, invest in RD (recurring deposits)
use nationalize bank services for RD
if the general reserve is too high, then use for any fixed investment in blue-chip stock or FD or RD
percentage of general reserve:
general reserve conduct 25% of the total share
6250 INR per month
Maintenance is also important for the long life of assets like bike servicing or to renew home. If the amount is not enough then collecting money for work or several months and then done this work.
Use this money for only maintenance
distribute money according to services
if money is not enough then conduct two months for collecting money
percentage of Maintenence
It contains 10% of the total share.
2500 INR for the month
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