After a few days of discussion, I understood how to spend the earned money in the right way and what kind of fund should be formed with the remaining money.
I have summarized what I understood in this regard below so that it is easy for others to understand -
▪️Proper structure of spending earned money
🔹 Basic needs: In this case, 50 percent of the earned income should be spent.
The areas of expenditure are-
. Food
. Clothing
. Housing
. Education
. Medical care
. Transportation
. Electricity bills, gas bills, etc.
🔹 Savings and investments: Here, a minimum budget of (30-40)% of the income should be kept.
Types of savings and investment funds-
. Emergency fund
. Pension or retirement fund
. Investment in gold or stock market
. Investment in cryptocurrency or Bitcoin
🔹 Entertainment and social expenses: In this case, 5% of the income can be spent.
. Travel
. Eating out at restaurants
. Gifts
. Expenses at social events, etc.
🔹 Some budget can be kept for personal development, donations and social service and other areas.
Now the question may arise, how can those who earn a small amount of money meet their basic expenses with 50% of their income?
In fact, everything is possible if you spend according to your income.
It is not something that you have to keep 50% for basic needs. Spend the amount of money that you feel is worth spending. Invest the amount of money that is left after meeting your basic needs and if you do not have an emergency fund, create an emergency fund in addition to investments. If you do not have enough money to invest after meeting your basic needs, you can find alternative methods if you want. For example, you can reduce all your expenses that seem unnecessary, you can do some kind of work besides your job if you want.
Let me give you a real example, a neighbor of mine works for a very small monthly salary. The amount of money he earns every month is not enough for him to last the whole month. He thought about giving a food code a few months ago and a few days later he gave a food code and he works all day and starts a food code at night. After starting a food code, his financial crisis has reduced.
If a person with a low income wants, there are many types of jobs that they can do in addition to working and alleviate their financial crisis.