‘Give your future its share’: 8 tricks to handle your incomes, savings and investments | Pay Yourself First
Knowing where money goes does not always help people build savings. An expense record can still end with nothing kept aside.
Aadil Kadri QPFP® ️ suggests changing the order in which people manage their income. His approach, Pay Yourself First, gives savings priority when money arrives.
Kadri is Vice President Advisor at Continental International Group. He also wrote 3 Steps to Financial Freedom. Here are 8 lessons from his views shared with Mint.
Your future in your monthly plans
Many people pay every bill before checking whether anything remains for savings. Kadri believes this approach makes saving depend on leftovers.
Instead, he suggests setting aside a fixed amount when income arrives. The remaining money then becomes available for monthly spending.
“Before the month begins, your future gets its share,” he says. This changes saving from a hopeful outcome into a planned action.
Start with what you can manage
You need not wait for a bigger salary or a perfect financial plan. Kadri suggests starting with 5% of income.
For someone earning ₹1 lakh, that means setting aside ₹5,000 first. The person would then manage expenses within the remaining ₹95,000.
The starting amount should feel manageable enough to continue. A modest beginning can help establish a routine without demanding a lifestyle overhaul.
Repeated self-control: Not required
Good intentions often weaken as everyday demands and tempting purchases pile up. Tracking every expense still leaves people making repeated spending decisions.
Setting money aside early removes one decision from that cycle. It reduces dependence on feeling disciplined throughout the month.
Kadri compares steady progress with climbing stairs, where each small step takes you forward. His point is simple: a workable system can support good intentions.
Give money a purpose
Money without a purpose can easily feel available for another purchase. Naming a goal changes how people view the amount they have separated.
That goal could involve retirement, education, emergencies or greater financial independence. Kadri describes this shift through a different lens on income.
Instead of saving whatever survives spending, reserve money for future needs first. The remaining amount then guides present spending choices.
Survive busy months
School fees, repairs, holidays, and family commitments can disrupt even the best-prepared plans. A complicated money routine may become harder to follow during such periods.
Kadri favours making the saving decision when income arrives. This keeps the process simple when other responsibilities demand attention.
“The percentage can change. The habit should not,” he says. The focus remains consistent, with adjustments reflecting changing circumstances.
Keep useful apps
Kadri does not dismiss budgeting apps or expense tracking. These financial tools can show spending patterns and highlight areas needing attention.
However, knowing what happened to money differs from deciding where it should go. Apps provide information while the saving habit gives that information a direction.
Make it less tiring
Constant checking, sorting and reviewing can turn budgeting into another source of pressure. Kadri suggests financial planning to build confidence instead of guilt.
Separating savings early settles one priority before other spending decisions arise. People can then focus on managing the remaining money.
Follow your circumstances
Once 5% feels comfortable, Kadri suggests moving towards 10%. Further increases can follow as income, goals and personal comfort allow.
The larger lesson is to value regular action over waiting for ideal conditions. Small decisions repeated over time can give future plans a starting point.