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Though most of us are paid our salary on the last working day of a month, there are many who only receive their salary by the end of the first week of a month. But your household expenses don’t wait till you receive your salary. If you belong to the latter group, here’s a good strategy to meet your regular household expenses till you receive your salary:
Let’s say you receive your salary only on the 7th of every month. Add up all well known household expenses (example: salary for domestic help, utility bills, groceries, etc.) that you expect to incur within the first seven days of a month. From this month’s salary, set aside this amount as a micro-emergency fund and use this to cover your household expenses between the 1st and the 7th of the next month. Repeat this cycle.
What do you think?
Tip Tuesdays is my initiative to share practical personal finance tips — every Tuesday. I’d be delighted if you could share a tip or two from your own experiences. Drop a comment to submit your tip. And, as always, do spread the word if you find this useful.
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