Thu. Sep 29th, 2022
How to spend your salary smartly?

Salaried people face this issue while spending their salaries as their earning is less than the expenses, and at the end, they don’t have anything left to save or spend, and some of the critical tasks are left undone. You need to act smartly while spending your salary as you are going to get it once a month. Spending your salary smartly is a skill not everyone has. Think and plan before you pay a single penny from your pay. Once your salary is in your hand, take a pen and paper and start scheduling the things. About 50 per cent of your salary is spent to pay the essential expenses. List all the necessary costs and also write amounts of them.

After doing so, total the amount and separate that specific sum of money from your salary. After dividing it, suppose you have left with 50 per cent of the salary. Separate 20 percent of that 50 percent and then you will be left with 30 per cent. Spend that 20 per cent on financial activities, like in investing, saving or paying back any dept, if you have one.

Remember to separate money for financial tasks before you may spend it on any other activity. After dividing the amount for economic priorities, you will be left with 30 per cent. This 30 per cent left with you, could be spent according to your choices. You can pay it to your children or for entertainment. You are free to make any fun choice from that money. 


You can give some amount to charity, and from the rest, you can do shopping and also do any miscellaneous expenses. The above 50-20-30 is a rule for spending salary in an efficient way, and it works well in reality. Especially for the salaried people who always find their income below as compared to their expenses.  On the other hand, families who don’t plan their spending, face problems continuously.

Usually, people find difficulty in adjusting their costs in salaries because they don’t know how to spend. First, they pay off their necessary costs and then spend on lifestyle expenses. They forget about their financial priorities, and this is what causes them to face hurdles. This rule only applies to the salaries of persons and not to those who earn by doing business or those who are taking pension after retirement. While spending money from your salary, never leave any expense to the future.

Pay as you have planned and as you have money. Leaving your costs unpaid now to be paid in the future can cause problems, and there will be a time when you’ll have a lot of costs to spend but very little to afford. Sometimes this 50-20-30 rule doesn’t apply in some cases. This is because they have a lot of necessary expenses and low salaries as compared to that and almost all of their wages get spent in covering those expenses, and there is nothing left to spend on the other two portions.  

By Amelia Hoffman

Passionate web scholar and blogger. Future teen idol. Food geek. Avid zombie fanatic. Problem solver.