Earning ₹1 lakh per month may sound like a dream, but in big cities, expenses can eat up your salary faster than you think. High rent, EMIs, lifestyle costs, and impulsive spending often push people into debt despite earning well. Here are 5 practical mantras to regain control and achieve financial freedom:
🧾 1. Track Every Rupee You Spend
The first step to getting out of debt is understanding where your money goes. Use apps or maintain a simple spreadsheet to track expenses under categories like rent, groceries, entertainment, and EMI payments. Once you see the numbers clearly, you can cut down on unnecessary spending.
💰 2. Follow the 50-30-20 Rule
Adopt a smart budgeting formula:
- 50% of income for needs (rent, bills, food)
- 30% for wants (shopping, travel, dining out)
- 20% for savings and debt repayment
This ensures you don’t overspend and still build wealth for the future.
❌ 3. Stop Living on Credit
Many salaried professionals swipe credit cards or take personal loans for luxuries, trapping themselves in high-interest debt. Focus on paying off credit card balances first, starting with the highest-interest debt (avalanche method) or smallest balance (snowball method) to stay motivated.
📦 4. Downsize & Prioritize
Reassess your lifestyle choices — can you move to a slightly cheaper house, cook more at home, or reduce subscriptions? Even small cuts can free up thousands every month, which can go toward clearing debt faster.
🏦 5. Automate Savings & Investments
Set up automatic transfers to your savings account or SIPs right after your salary is credited. This “pay yourself first” approach ensures you save before you spend and builds an emergency fund to avoid future borrowing.
🎯 Bonus Tip: Build Multiple Income Streams
Consider freelance work, weekend gigs, or monetizing a skill online. Even an extra ₹5,000–10,000 per month can speed up debt repayment and reduce financial stress.
Disclaimer:
The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk.
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