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How To Guide

How To Manage Your Salary Wisely

Use these 6 tips to manage your salary wisely. Go beyond managing your salary to wealth creation with Cube Wealth.
April 18, 2024

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Being able to manage your money well is not just about trying to make ends meet. You don’t have to have a lot of experience or be a math-wiz to be able to manage your finances well either. 

The challenge is to find a way to save a portion of your salary while paying off debts, covering basic living expenses and working towards your financial goals. 

So if you’re looking for advice on how to manage your salary, you’re at the right place. I've put my thinking hat on to help you save and create wealth with your hard earned salary.

6 Tips To Manage Your Salary Wisely

Let's check out tried and tested ways to help you become more diligent with your salary and create wealth for the future:

1. Create A Budget

Create a budget based on your monthly net income. Budgeting helps you stay in control of your money and allows you to keep a track of your expenses. 

Tracking your monthly spending prevents you from guessing where your money has been spent. You should set realistic budgets for yourself and prioritize paying fixed costs first such as bills or EMIs. 

The 50-30-20 rule is also a great guideline you could use to efficiently budget your savings. Spend 50% of your income on your essential bills, 30% on your financial goals and 20% on flexible spending. 

2. Set Financial Goals

Instead of vigorously investing your money and potentially jeopardizing your goals, create a framework for what you wish to achieve. You could split your goals into long-term goals such as stocks, equity and mutual funds and short-term goals such as liquid funds and save your income accordingly. 

By doing so, you will be able to determine the amount you need to invest for each goal and for how long. Speak to a Cube Wealth Coach to help you identify investment options based on your financial goals.

3. Invest In Options That Work For You

It’s easy to get overwhelmed by all the investment options and schemes available. A good place  for a beginner to start would be  investing in a options backed by solid financial advice.

Your investment should be in line with what your future financial goals are. It’s important to do your research to find out what fits best with your goals or you could also Speak to a wealth coach to receive professional advice based on your circumstances.

Watch this video to know why you need a wealth advisor:

4. Pay Attention To How Much You Spend

It can be easy to keep spending on depreciating assets, gifts, and wants. but these costs eventually add up to a much larger sum than you would realise.
A pro tip from our founder Satyen Kothari: For every ₹1000 you spend on a gift or a depreciating asset, you should save ₹10. This small amount of money will add up in your savings in the long run! 

5. Treat Yourself... Wisely

It’s easy to be harsh on yourself by cutting down on things that bring you joy. This could cause you to eventually give into the pressure and unnecessarily splurge. So, when budgeting, it's important to leave room for your wants to stay on track.

Reward yourself with a fancy dinner or a short vacation when you reach one of your financial goals!

6. Pay Off Debts

High interest rates on your debt such as mortgages and credit cards could be a heavy burden on your personal finances. You should consider paying them off as soon as possible once you start to generate a steady revenue stream. Vacation would be much more enjoyable if it’s paid for and you aren’t racking up credit card debt!

Steps To Manage Your Salary

Following these simple steps to manage your salary can help you hit goals like investing more or taking on less debt. 

Step #1. Deduct Unnecessary Expenses

Not buying that latest gadget or cooking meals at home (most of the time) can allow you to save & invest more from your salary. This can become a source of passive income for when you retire. 

You can curb unnecessary expenses by creating a budget every month. Some working professionals have been known to draw up a monthly expense chart a day or two before getting their paycheck.

Others stick to a strict monthly budget that’s been made in advance, say a year ago. Either way, answering the question of how to manage your salary starts by working on curbing unnecessary expenses. Speak to a wealth coach or download the Cube Wealth app today to stay ahead of the curve and invest wisely.

Step #2. Setup An Auto-Debit

The auto-debit feature allows you to set up automatic bill payments and investments on a specific date. You can set the trigger, say at the beginning of the month when you get your paycheck.

Setting up an auto-debit can ensure that you pay your bills and invest on time. Furthermore, it’ll ensure that you get the essentials out of the way before you spend your salary on wants. 

Step #3. Invest Monthly Surplus

It’s the end of the month and you’re left with a surplus. Great! You may find yourself with two options:

  • Save & invest
  • Spend

Choice #1 has the power to generate more money for you in the future. It’s money from your salary that can add more weight to your existing portfolio, even if it’s as low as ₹1000.

Choice #2 is your right because you’ve managed your salary well enough to have a surplus. But it’ll be money that’s gone forever if you spend it. Either way, investing the money could be the optimal choice.


Initially, it may seem challenging to manage your finances well. But as you follow these steps, it'll soon become a part of your monthly routine. 

However, it is essential to go beyond managing your salary to paying your future self with the right investments. Speak to a wealth coach or download the Cube Wealth app today to stay ahead of the curve and invest wisely.

Frequently Asked Questions Around Managing Salary

Q. What's the 50-30-20 budget rule?

The 50-30-20 rule helps answer the question of how to manage salary on a monthly basis. According, to the rule, you can allocate 50% of your salary to needs (rent, groceries, etc.), 30% to savings & investments, and 20% to wants (dinner dates, luxury purchases, etc.)

Q. How can I manage my monthly salary?

You can manage your salary by following a few simple steps like making a budget (and sticking to it), setting financial goals, keep a tab on how much (unnecessary) things you're spending on.

Q. How do I manage a ₹20,000 salary?

Popular thumb rules for managing your salary like the 50-30-20 rule of budgeting suggest that you can allocate 50% of your paycheck (₹10,000) to essentials like rent, and food; 30% (₹6,000) for saving & investing in assets like mutual funds, stocks, digital gold, and more; 20% (₹4,000) to wants like dinner dates.

Q. How do you manage a 30k salary?

Working professionals are known to follow popular rules for managing salary like the 50-30-20 rule. If you're earning ₹30,000, then according to the 50-30-20 rule, you should allocate 50% or ₹15,000 to essentials; 30% or ₹9,000 to saving &investing; 20% or ₹6,000 to wants.

Priya Bansal
Curious about personal finance and all things money. Can either find me reading a book or dancing to a tune.

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