How do u budget for ur family?
Say u earn 17L yearly post taxes, how much from this u want to absolutely save and accommodate rest in the bills/entertainment/misc. Or u don’t budget on yearly basis but monthly? But then how would u account for payments like insurance which are yearly? Just want to understand if u guys do the budgeting and secure some part for saving/investment at all cost? I assume u use excel for this, do share if anything else
Even yearly commitments should be budgeted monthly. I normally put money every month for the annual premium (e.g. if you have a 1 lakh premium you put aside 9k a month in a recurring FD that matures in time for the premium payment, or in a liquid fund). I also put money aside every month for vacations, so maybe 5-7k a month makes for a nice kitty when you plan vacations or flights home for Diwali.
I’d use bonus money (if that is part of comp) for larger goals. (e.g. I used my last bonus for a large paydown for a family commitment). You could use it to save for a down payment or a loan prepayment
I like the idea of budgeting it monthly. Would liquid or debt fund be better than FD/Recurring deposit ?
Tax wise I don’t think there is much difference for short-term. But I prefer liquid / debt funds since you have flexibility in how much money you can withdraw. FDs tend to be all or nothing
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