“I want to invest but my salary does not permit me” or ” I will start investing as and when I get a raise”, I have been hearing these sentences very frequently. People think they are unable to Invest just because they are earning less, this is a myth. Becoming rich is not about earning a lot, it is about investing wisely and keeping your expenses under control. You should understand the difference between Needs and Wants. Needs are the basic necessities of every human being where as wants are luxuries or comforts that people like to possess. Once a person knows his needs he can easily control his wants and avoid unnecessary expenses.
An easy way of allocating your income is following the 50-30-20 rule. As the name suggests, in this rule your income is dividend into 3 parts 1. Needs 2. Wants 3. Investments.
So, 50% of your total income should be allocated to Needs i.e EMI/rent, traveling,food, child education, etc. 30% of income should be allocated to wants i.e vacation,cars, other luxuries. And 20% should be allocated to Investments i.e Mutual funds, shares, fixed deposits, gold, etc.
Going a step forward, once you are comfortable with following this rule and over a period of time there is an increase in your income you can increase your allocation in investments, helping you to reach your financial goals in lesser time.
Any questions/queries
Email id – shubham.kandalkar@gmail.com
Whatsapp – 9920978346
Instagram – mr.investsmart
Facebook – Mr.investsmart
mr.investsmart 
Short and informative
LikeLike