Places Your Money Needs To Go

In today's post I am going to talk about the places where your Money should be heading once you get your Salary Credited into your Account, assuming you get paid once a month as I am also a Salaried Employee. So here is exactly where I put my money when I get paid my Monthly Salary.

1 Paying My Debts

The number one thing where you should divert your money is towards your Debt. Now these debts could be a Car Loan or House Loan or even your Credit Card Statement, make sure that you put your money towards paying your debts first as failing to pay severely hurts your Credit Score which inturn affects future financial prospects in life.

2 Time For Necessities

This is a given fact that when you are living in this world you have necessities and that requires Money, so put your Money towards necessities like Rent/Mortgage, Food, Fuel, etc. The idea here is to put money only for the basic necessities in your life and not splurge money on fancy items.

3 Emergency Fund

This is a topic which is broadly covered in several of my posts and even though I have always suggested to have an Emergency Fund of 6 times your Monthly Expenses you should start by taking in a small target of 3 times your Monthly Expenses and then gradually increase your Emergency Fund. You can also invest your Emergency Fund Money into some Liquid Finds which has no lock in period and you can earn some extra interest in top.

4 Make Your Retirement Fund

I am currently working in the Private Sector which has its Ups and Downs but every single month when I get my Paycheck it comes with a portion deducted which is Auto Invested in something called the EPF which stands for Employee Provident Fund where a portion of the Money gets added to your Provident Fund and another portion gets added to a Pension Fund. The cherry on top is that the amount of money you invest in this EPF your employer matches the amount as well which gives you a huge boost to your Retirement Fund.

5 Start Investing

Finally you should start to invest your Money so that you make proper gains and be self sufficient in future. This means you can invest the way you understand which means you can invest in Stock Market or Bond Market or even Real Estate, whatever you understand the best is the way to go for you but the important thing is to Invest.