Live below your means
This is one of the reasons I generally don't use credit cards. Even to this day I use credit cart only for the online renewals majorly. For all other things I use debit card only.
Until recent times I used to use the credit card of my friend Chakrapani who used to give me the summary of my expenses on a monthly basis and I used to pay him back. This was may way of making sure that some sane head was reviewing my credit card expenses.
During Corona I tried an experiment where I lived with my wife, kid and my parents in a small rental house for almost 6 months with less than 20 thousand burn per month including rent, food and other things.
This gave me a lot of confidence about how I can live minimally with my family in the worst scenarios.
Track your expenses
I am really bad at tracking my expenses. So these days I have moved to online mode of payments so that I can track them a little better. As I cannot track everything I am trying to track my major expenses. I try to break this down into two heads.
Big amounts
I try to track any amounts greater than 10,000
Recurring amounts
Any amount that gets repeated I generally try to track them.
Using these two I am trying to calculate my Build your runway
Increase your earnings.
Invest regularly.
Referenced in:
All notes