6 Steps To Start Managing Your Money

Are your finances in a mess? Do you keep procrastinating the thought of sorting them out? Here are 8 steps that you should follow to get started:

Step #1. List out your incomes and expenses: 

You could either be a salaried professional,  a housewife, a businesswomen or even a freelancer. Whatever your cash stream note down the figure from all your income sources and list all your expenses below it. You can even categorize expenses based on necessities and luxuries or fixed and discretionary. Example: House rent is a fixed monthly expense and a necessity, paying for a movie could be discretionary or luxury expense. 

Step #2. After listing your incomes and expenses track  your budget for 3 months:

Tracking your monthly incomes and expenses for 3 months will give you an idea of your financial standing and how much you can save per month. If you’re barely saving anything, find ways to cut down your expenses. Example: Buying groceries in bulk, cutting down on few discretionary and luxury expenses.

Pro Tip- Ideally save at least 20% of your income or save your age: So if you’re 30 save 30% of your income.

Step #3. Invest part of your savings:

After saving some money, leave a part of it as liquid cash and the rest can be locked in for investments. The liquid cash can be saved in a bank account and rest can be invested.  Read this quick guide to know the different types of bank accounts

Before investing you’ll need a demat account to hold your investments in an electronic form. Visit your bank or any share brokerage company like Motilal Oswal to open one. 

Step #4. Record all your passwords and bill due dates in an excel sheet:

Once you’ve got your accounts in place store all important passwords (Like bank account, netbanking password, demat account) in a google sheet along with all bill due dates and expiry dates that you need to be aware of.

#Step 5: Before you meet your financial advisor organize all the above information in a physical and in a digital form:

Get digital and physical copies of the latest documents of all your existing accounts: This includes bank account statements, credit card statements, demat account statements. Along with this procure any other existing financial documents like a Will, insurance policy, shareholding certificate and digitize them if they’re not already in digitized form. To do this you can simply scan the document and convert it into a PDF so no one can alter the information. 

Before you meet an advisor.jpg

Step #6. Meet the people who handle your money- Start off with a financial planner/advisor:

Now that your finances are adjusted and in place meet the people who handle your money. Start off by meeting a financial advisor first who will suggest a financial plan best suited to you based on the above information that you provide.

If you’ve got any more questions before you get started, comment and let us know.


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