How often do you question yourself before making any purchase,it may be anything from a house to spending at a 5 star restaurant,you often ask can you really afford it?

This reading gives you a insight into dividing your spendable income and also investing a part of it for the future

Buying a car :

The ground rule of buying a car on a loan/EMI is value of the car should not exceed or may be lower than 50% of your taxed income.

If you have a monthly income of 12,00,000 you can buy a car of value atmost 6 lakh.

Buying a house/any property:

The amount of EMI installements you pay must not exceed 50% of your monthly income,in this way you can be secure.

This ground rules on making any substantial purchases that could take a long time to repay is must needed,every person has their own needs according to his/her lifestyle.But simply follow the 50/30/20 rule,50% is for your needs ,30% is for your personal expenses,20% is savings/loan.

Needs may include anything from rent,utility bills, education fees, fuel,groceries

Personal expenses include dining out,membership fees,subscription fees, shopping etc.Everything non essential but you need them in your life

Allocating 20% of your income is a good way to start saving,in situations where you own a home/car you may not need to spend so much of your income on needs,instead you spend on EMI’s.This 20% can be either be saved or used on your EMI’s,but ensure you save atleast 15% income on regular basis.

Every person has various incomes,various spending levels,but by following this simple rules you can live your life without any burdens of heavy EMI’s,taunting you.