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  • Category: Miscellaneous

    Maintaining account for income and expenditure is good in long term.

    People earn money by way of salary, business profit or daily wages. The money so earned is spent on maintaining the home, repayment of loans, savings, personal expenditure etc. If we maintain an account of our income and expenditure, we come to know how much we are spending on each item. After some time if we analyse the account book, we can understand where we are spending more and where we are wasting money by unnecessary expenditure. Some times the electricity bill may be more than what it used to be. In such case the consumption of power may be controlled to minimise the expenditure. Similar is the case with fuel consumption. Personal expenditure is one item where there is likely to be more wastage of money. Everyone is required o save money for future needs. By maintaining account, we can plan our budget and save for the happy future. In the long term, maintaining account will be useful and we will be the gainers.
  • #568948
    Regarding maintaining account of household expenditure people often fail to understand it properly. First of all the total salary income should not be treated as income. The amount of regular monthly saving, which is must for all concerned should be deducted from the monthly salary income and only the remaining amount should be counted for planning purpose.
    As per my experience the regular monthly household expenditure should not exceed 50% the net monthly income (after deducting saving amount), because all the requirements are not monthly in nature. There are many quarterly, biannual, annual and seasonal requirements also. The cost of buying clothes, extra expenditure during festivals, cost of repairs and maintenance of house/gadgets, expenditure involved during guests arrival or visit to their places, gifts etc. to be given during marriages etc. in the family/social circles etc. don't come under the regular monthly expenditure. Thus the regular monthly expenditure of an individual earning net salary in hand of Rs. 50,000 should not exceed Rs. 20,000 after deducting Rs. 10,000 toward saving and dividing the remaining amount Rs. 40,000 by two to make it Rs. 20,000.

    Let us encourage each other in sharing knowledge.

  • #568949
    We should definitely maintain an account for our expenditure and remaining should be planned and saved properly. People usually fail to save properly and in most of the families by month end, they will face shortage of money. Everyone will know what is the monthly expenditure approximately. So leaving the expenditure keep some extra money in account is suggestible, but rest should be saved on invested properly. Planning is very essential in saving money. Experienced and elderly people will have more idea on how to save money than younger people. So they should seek elders for suggestion and invest properly.

  • #568974
    @Kailash Kumar
    Net monthly income means take home salary after the deductions. We cannot deduct savings from the salary and call it net monthly salary. From the net salary, we have to plan all the expenditure and savings.

    With regards

    " Be Good and Do Good "

  • #568976
    Maintaining accounts for our domestic expenditure is a good habit and which yields way to control the expenditure and even for planning to spend. In recent years the vendors fixing their prices as their own and not based on some policy. Thereby the price of a product is varying from person to person. If we have some noted accounts for our earlier expenditure, we can have an idea about the price with some escalation. Similarly the borrowing and given amount also get accounted which will be useful to our youngsters.

  • #568977
    K.V.Raghava Rao - Deductions by employers vary from organization to organization. We are not considering the cases of only Government sector and organized sector private companies. Perhaps number of people working in unorganized sector is more than those who are working in an organized sector.
    Let us encourage each other in sharing knowledge.

  • #568995
    It is always good to have a precise idea of our income and source, Then we have to make a budget of income and expenses. Even if we may not be perfectly conforming to the budget, we will at least know where the gap lies or what adjustments can be done in future. From that we may know what is our essential and what are avoidable. We may also get to know how to conserve our income and if possible ways to increase the income.( Properly adjusting the savings can make some increase in interest income and postponing the avoidable expenses also can help)
    Let us keep faith on ourselves and work sincerely, not leave everything to fate.

  • #568999
    In an unorganised sector, there will be no deductions from the salary. The daily wage earners come under this category. I am just referring to what is in vogue. Salary minus deductions is the take home or net salary. Whatever savings we do it is from this only.
    With regards

    " Be Good and Do Good "

  • #569018
    Yes for every company or Industry it is necessary to maintain the accounts to have the tab over the income and expenditure and also it will facilitate to allot for future. Like wise house hold expenses must also be accounted for. How the family spends in respect of income to expenditure and how the future expenses be met. Some times we get unexpected expenses which are important and cannot be discarded nor postponed. So provisions for such expenses must be made. I am having the habit of maintaining the accounts for the home and do analyze the payment versus income and what the extras which happened in a particular month ?
    K Mohan
    I consider myself as the learner everyday

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