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Personal finance: A topic for all.

This is one of the most neglected area of any household in India. There can be widespread reasons for why it is neglected (time, effort, ignorance or just plain lazy etc) but one thing is for sure – it does not get the attention that it deserves. In most of the households, it’s the other way around.

This is how my personal finance used to be…… looks familiar? :

  • Salary comes in – happy times (this is what the last 30 days were for…..!!!!)
  • And then it starts flowing out:
    • Rent and/or EMIs,
    • Groceries,
    • EMIs : Car, Bike, TV or gadgets etc,
    • Insurance premium (assumed monthly payment),
    • Bills : electricity, water, mobiles and DTH etc
    • Payments :
      • domestic help and/or maid,
      • cook,
      • driver,
      • newspaper vendor,
      • car cleaner,
      • watchman,
      • and/or society maintenance.
    • Kid’s school fees,
    • Payment for luxuries (questionable utility) : Gym, Clubs, Society’s, magazine subscriptions etc
    • Credit card payments,
    • Fuel expenses depending on the numbers of cars.
    • Others – car service, home repairs/maintenance/ improvements.

All the above are monthly expenses for a typical household in India. The list is not based on any ranking or level of importance. This is how I used to go through my salary. The list is just a visual recap of where I spent my money!!

Did you notice : 1 income inflow points, 11 outflow points…..

And, I have still not mentioned all the un-planed and un-expected expenses :

  • Kid’s demands – toys, clothes, school trips, school functions etc,
  • Movies in PVR or Inox,
  • Eating out at restaurants,
  • Hanging out at pubs or discs,
  • Weekend trips with friends,
  • Friends or relatives coming over for an impromptu weekend trip,
  • Office or social birthday or anniversary celebrations.

Did I leave out anything? …….. Just this : 

Savings and Investments

I mention savings and investments at the end….because isn’t this how we plan our savings and investment every month? Food for thought…….

 

Comment below on what personal finance topics keep you awake at night……..

The next post in this series is available here : Personal finance series : What’s your number?

General Personal finance series : Is this your household?

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