#4 Rules of Managing Money Money management is an important practice that everyone should start with their first paycheque itself

1. Don't spend more than you earn

The first step of budgeting is to understand whether your expenses are in line with your income. If you don't track your expenses diligently, it is easy to blow up all your income even before the month ends. For credit card users, it's even easier to spend way more than they bring in as credit can create an illusion of higher affordability.

2. Save at least 10% of your income

Financial planners say that 10% is the bare minimum that should be stashed away at the start of the month before you start spending. You can either automate this in a liquid fund, or start a recurring deposit or simply transfer it into a secondary savings account.

3. Control your debt

Easy availability of credit encourages spending and can easily push you into a debt trap if not used responsibly. One should try to avoid taking loans completely for discretionary spends. If you do have to borrow, make sure that equated monthly installments (EMIs) should not exceed 20 per cent of your income.

4. Invest for your future

Saving helps create a safety net for emergencies but investing is essential to fulfill future financial goals. Don't let your savings idle away in deposits or savings account as inflation eats into its value. Once you have accumulated a corpus for emergencies, start investing your savings in suitable financial instruments to grow that money.