Have an investment plan in place so that your savings will work towards meeting various financial goals.

In fact, the sooner you start, the easier it will become for you to inculcate it as a habit,' said Shilpi Johri, head-financial planning, Arthashastra Consulting, a Gurgaon-based financial advisory. “Try and start saving as early as possible in life. Also, have adequate medical insurance apart from what is provided by your employer. Be adequately insured for all three,' said Shah.įor medical emergencies, financial planners advise on contingency funds for 3-9 months’ expenses. “There are three basic types of emergencies-loss of life, medical and job loss or potential loss in business. Savings-15% onwards: The first goal for your savings should be to create an emergency fund. Use the percentages as guides, but custom tailor the budget. Here are some percentages that can be used as pointers. Based on this, one can prepare a budget,' said Melvin Joseph, founder and chief financial planner, Finvin Financial Planners. Care should be taken to reduce unwanted items in future. Write down all expenses for three months and then review. At the same time, consider any allowance, such as for accommodation or travel. “Work with your take-home pay so that you don’t exceed what’s available. This will help you stay within your income and take care of saving priority. First of all, limit each head of expense to a range.

Budget percentages for household