{"id":5119,"date":"2022-12-09T16:44:43","date_gmt":"2022-12-09T16:44:43","guid":{"rendered":"https:\/\/goldenpi.com\/blog\/?p=5119"},"modified":"2026-02-24T11:12:12","modified_gmt":"2026-02-24T11:12:12","slug":"how-to-do-money-management-wisely","status":"publish","type":"post","link":"https:\/\/goldenpi.com\/blog\/financial-matters\/how-to-do-money-management-wisely\/","title":{"rendered":"How to do Money Management Wisely?"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Having a bundle of money seems like there are a lot of imaginable numbers in the bank account that seems satisfactory, but running out of it happens in no time and leaves you in an undesirable situation. How could one possibly lose it quickly? That shows the need to take care of money. The question is, \u201cAre you doing it?\u201d Mostly \u201cno\u201d or mostly \u201cI do but yet don\u2019t know how it fades away sooner\u201d. Well, the answer to it is money needs to be wisely managed!<\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_79_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/goldenpi.com\/blog\/financial-matters\/how-to-do-money-management-wisely\/#Highlights\" >Highlights<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/goldenpi.com\/blog\/financial-matters\/how-to-do-money-management-wisely\/#Whats_in_the_wise_Management_of_Money\" >What\u2019s in the wise Management of Money?<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/goldenpi.com\/blog\/financial-matters\/how-to-do-money-management-wisely\/#Financial_planning_Its_3_phases\" >Financial planning: It&#8217;s 3 phases!<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/goldenpi.com\/blog\/financial-matters\/how-to-do-money-management-wisely\/#The_use_of_50_%E2%80%93_20_%E2%80%93_30_Budget_Rule\" >The use of 50 &#8211; 20 &#8211; 30 Budget Rule\u00a0<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/goldenpi.com\/blog\/financial-matters\/how-to-do-money-management-wisely\/#Why_50_for_Essentials\" >Why 50% for Essentials?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/goldenpi.com\/blog\/financial-matters\/how-to-do-money-management-wisely\/#Why_20_to_the_Savings\" >Why 20% to the Savings?<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/goldenpi.com\/blog\/financial-matters\/how-to-do-money-management-wisely\/#Investment_strategies_in_bond_market\" >Investment strategies in bond market<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/goldenpi.com\/blog\/financial-matters\/how-to-do-money-management-wisely\/#Why_30_in_wants\" >Why 30% in wants?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/goldenpi.com\/blog\/financial-matters\/how-to-do-money-management-wisely\/#The_mindset_or_habits_to_wisely_Manage_Money\" >The mindset or habits to wisely Manage Money<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/goldenpi.com\/blog\/financial-matters\/how-to-do-money-management-wisely\/#1_First_comes_first_is_%E2%80%9CBudgeting%E2%80%9D\" >1. First comes first is \u201cBudgeting\u201d<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/goldenpi.com\/blog\/financial-matters\/how-to-do-money-management-wisely\/#2_Time_to_Track\" >2. Time to Track\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/goldenpi.com\/blog\/financial-matters\/how-to-do-money-management-wisely\/#3_Living_Consciously\" >3. Living Consciously<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/goldenpi.com\/blog\/financial-matters\/how-to-do-money-management-wisely\/#4_Thinking_like_an_Investor\" >4. Thinking like an Investor\u00a0<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/goldenpi.com\/blog\/financial-matters\/how-to-do-money-management-wisely\/#Time_value_of_money\" >Time value of money<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/goldenpi.com\/blog\/financial-matters\/how-to-do-money-management-wisely\/#5_Debt_that_awaits_your_Repayment\" >5. Debt that awaits your Repayment\u00a0<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/goldenpi.com\/blog\/financial-matters\/how-to-do-money-management-wisely\/#Concluding_Thoughts\" >Concluding Thoughts<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/goldenpi.com\/blog\/financial-matters\/how-to-do-money-management-wisely\/#FAQs_on_Money_Management\" >FAQs on Money Management<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/goldenpi.com\/blog\/financial-matters\/how-to-do-money-management-wisely\/#1_What_is_money_management\" >1. What is money management?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/goldenpi.com\/blog\/financial-matters\/how-to-do-money-management-wisely\/#2_What_is_the_50_%E2%80%93_20_%E2%80%93_30_Budget_Rule\" >2. What is the 50 &#8211; 20 &#8211; 30 Budget Rule?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/goldenpi.com\/blog\/financial-matters\/how-to-do-money-management-wisely\/#3_Is_it_possible_to_manage_money_just_by_following_one_of_the_rules\" >3. Is it possible to manage money just by following one of the rules?\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/goldenpi.com\/blog\/financial-matters\/how-to-do-money-management-wisely\/#4_What_are_the_benefits_of_money_management\" >4. What are the benefits of money management?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h3><span class=\"ez-toc-section\" id=\"Highlights\"><\/span><strong>Highlights<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Money management aids in making planned budgeting decisions.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">50% for essentials, 20% for savings, and 30% for wants are allocated as per the 50 &#8211; 20 &#8211; 30 Budget Rule.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Money management habits reduce the possibility of running out of cash.\u00a0<\/span><\/li>\n<\/ol>\n<h2><span class=\"ez-toc-section\" id=\"Whats_in_the_wise_Management_of_Money\"><\/span><strong>What\u2019s in the wise Management of Money?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">If you think the term save, spend and invest is something related to finance but of no significance, stop right there. That\u2019s something you need to give a deeper look at. When you begin to do budgeting, all these three terms come into action!\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Money management in this context refers to personal finance and does not concern investment or portfolio management.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">So, \u201c<\/span><i><span style=\"font-weight: 400;\">It is a way to track and plan one\u2019s capital in hand.<\/span><\/i><span style=\"font-weight: 400;\">\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In our day-to-day activities, we don\u2019t really plan to manage money but just know, there is money in the bank account that could be used for our needs, wants, and future finances as an individual. But without our notice, while spending or investing, we realize that the money is gone or sometimes take out money from savings to manage the expenses. Do we have an actual plan to consciously control the amount of money to invest, save and spend? That\u2019s why you need to do \u201cMoney Management\u201d.\u00a0<\/span><\/p>\n<h4 style=\"text-align: center;\"><span class=\"ez-toc-section\" id=\"Financial_planning_Its_3_phases\"><\/span><a href=\"https:\/\/goldenpi.com\/blog\/essentials\/financial-planning-its-3-phases\/?utm_source=blog&amp;utm_medium=blog&amp;utm_Money_management\"><strong>Financial planning: It&#8217;s 3 phases!<\/strong><\/a><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<h2><span class=\"ez-toc-section\" id=\"The_use_of_50_%E2%80%93_20_%E2%80%93_30_Budget_Rule\"><\/span><strong>The use of 50 &#8211; 20 &#8211; 30 Budget Rule\u00a0<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">This is one of the concepts widely used to plan the money, before taking a randomized action on investing, spending, and saving. The consideration here is for the allocation of 50% of your capital after tax deduction into essentials, 20% of it in debt reduction or to make a saving, and 30% in spending for personal wants.\u00a0<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Why_50_for_Essentials\"><\/span><strong>Why 50% for Essentials?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Essentials are those things that one cannot live spending without. For instance, rent for living, travel expenses to the workplace, and food. It is legitimate to take away 50% of your budget for these essentials, as the name itself suggests the significance of the terminology.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It is always great to hear if one uses less than 50% for the essentials but if it is more, then there is a need to optimize the lifestyle for that matter.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Why_20_to_the_Savings\"><\/span><strong>Why 20% to the Savings?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Savings might not be the go-to thing in most of our lifestyles, but realizing the gravity of it is essential right from the moment one starts earning. And to go about it by setting aside 20% is an absolute call to take.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But on the other hand part of this section might also be a requisite for a need like clearing the credit card dues and the obligation towards the loans. After clearing, the remaining can always go into multiplying wealth by investing or preserving the money for another opportunity.<\/span><\/p>\n<div class=\"group\/conversation-turn relative flex w-full min-w-0 flex-col agent-turn\">\n<div class=\"flex-col gap-1 md:gap-3\">\n<div class=\"flex max-w-full flex-col flex-grow\">\n<div class=\"min-h-[20px] text-message flex w-full flex-col items-end gap-2 break-words [.text-message+&amp;]:mt-5 overflow-x-auto whitespace-normal\" dir=\"auto\" data-message-author-role=\"assistant\" data-message-id=\"61acfa62-ed67-421d-a0e6-2ee93d547bc1\">\n<div class=\"flex w-full flex-col gap-1 empty:hidden first:pt-[3px]\">\n<div class=\"markdown prose w-full break-words dark:prose-invert light\">\n<p>For instance, one way to explore the finance market is to <a href=\"https:\/\/goldenpi.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">consider bonds<\/a>, as they generally carry less risk compared to the equity market. Bonds can provide a means to approach wealth creation with a more stable perspective in the realm of finance.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<h4 style=\"text-align: center;\"><span class=\"ez-toc-section\" id=\"Investment_strategies_in_bond_market\"><\/span><a href=\"https:\/\/goldenpi.com\/blog\/essentials\/investment-strategies-in-the-bond-market\/?utm_source=blog&amp;utm_medium=blog&amp;utm_Money_management\"><strong>Investment strategies in bond market<\/strong><\/a><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<h3><span class=\"ez-toc-section\" id=\"Why_30_in_wants\"><\/span><strong>Why 30% in wants?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">It\u2019s common human nature to have a list of things on the wishlist. Can we remove it from our system? No. But can we optimize it? Surely! The wants in general can include things like entertainment, outings, shopping, dine-outs, and many more. Of course, it needs to be done but indeed it is great to know if it could be reduced and in other cases not increased above the set limit.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">That\u2019s about setting out your priorities in money management to have a clear understanding of how the money is spread across in achieving specific goals. To a greater extent, you have a transparent visibility of where all is your capital segregated.\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"The_mindset_or_habits_to_wisely_Manage_Money\"><\/span><strong>The mindset or habits to wisely Manage Money<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">It\u2019s the mindset or the habits that one adheres, to keep an individual in discipline to follow money management. Without it\u2019s hard to achieve, but what are those in your hand to control?<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"1_First_comes_first_is_%E2%80%9CBudgeting%E2%80%9D\"><\/span><strong>1. First comes first is \u201cBudgeting\u201d<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Without allocating the amount for the needs and wants, there is no way to manage money. Hence a widely thought out percentage towards each of the sections like Essentials, Savings, and Wants is the sought-after thought, to begin with.\u00a0 One can opt for the 50-20-30 rule or any other customer rule for that matter.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"2_Time_to_Track\"><\/span><strong>2. Time to Track\u00a0<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">What\u2019s the point if it\u2019s not about abiding by the rules you set while budgeting? Tracking is quintessential to keep in line with knowing if you are going with the plan as a set.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This allows you to also know if there exist any unusual costs to cut down in the latter part of your management as you stick on to it.\u00a0<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"3_Living_Consciously\"><\/span><strong>3. Living Consciously<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">We are existential beings but mostly living unconscious lifestyles 80% of the time and consciously for the rest of the moments. Certainly, your consciousness is lost when it comes to spending. For instance in things like spending money even after having Sodexo coupons. Not availing offers while ordering though you have a choice to opt for it.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"4_Thinking_like_an_Investor\"><\/span><strong>4. Thinking like an Investor\u00a0<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Having a saving mindset is old and where are you in having an investor thought process? Been investing or have yet to begin investing, the right time is now! <a href=\"https:\/\/goldenpi.com\/blog\/essentials\/time-value-of-the-money-in-the-present-future\/\" target=\"_blank\" rel=\"noopener noreferrer\">The time value of money in the present is more than the time value of money in the future<\/a>. Have a plan set to invest if you don\u2019t have it yet.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But why invest at all? Nothing is certain at the moment, you may have the running cash flow for now but what about having it in the future? Emergency doesn\u2019t knock beforehand but randomly. And that certainly needs a plan with certainty while in the present. For instance, having money after retirement has to be sought after now rather than making a plan later. That gives you a gist of why investors must be a part of your budgeting plan.<\/span><\/p>\n<h4 style=\"text-align: center;\"><span class=\"ez-toc-section\" id=\"Time_value_of_money\"><\/span><a href=\"https:\/\/goldenpi.com\/blog\/essentials\/time-value-of-the-money-in-the-present-future\/?utm_source=blog&amp;utm_medium=blog&amp;utm_Money_management\"><strong>Time value of money<\/strong><\/a><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<h3><span class=\"ez-toc-section\" id=\"5_Debt_that_awaits_your_Repayment\"><\/span><strong>5. Debt that awaits your Repayment\u00a0<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Debts are taken for having something at the moment while not having enough money to purchase right away but later over EMIs to the lenders who are offering money. Though the money is offered to you, it comes with interest over the time you repay. Paying more interest is an act that you don\u2019t want to be in or having a worse\u00a0 <a href=\"https:\/\/jkdsd.org\/cibil-score\/\" target=\"_blank\" rel=\"noopener noreferrer\">CIBIL score<\/a> is something you want to avoid, in that case, it asks you to have paid the debts on time. It\u2019s of utmost importance that you are sincere towards your repayment and it is a must to have a habit to follow diligently.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Concluding_Thoughts\"><\/span><strong>Concluding Thoughts<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The moment an individual understands their personal financial goals, the need for controlling the unnecessary spending of money into various divisions becomes the priority. Having a plan at hand is essential to avoid randomizing the budgeting process and at the same time to avoid running out of cash flow, especially at times when you are in a catastrophe.\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"FAQs_on_Money_Management\"><\/span><strong>FAQs on Money Management<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"1_What_is_money_management\"><\/span><strong>1. What is money management?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">It is a way to track and plan one\u2019s capital in hand be it personal finance, investment or portfolio management, or corporate finance.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"2_What_is_the_50_%E2%80%93_20_%E2%80%93_30_Budget_Rule\"><\/span><strong>2. What is the 50 &#8211; 20 &#8211; 30 Budget Rule?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">It is one of the money management concepts where the capital after-tax deduction can be set aside in 3 divisions. 50% of the capital is in essentials, 20% in savings, and 30% in wants as a process of budgeting wisely.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"3_Is_it_possible_to_manage_money_just_by_following_one_of_the_rules\"><\/span><strong>3. Is it possible to manage money just by following one of the rules?\u00a0<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">No. Though the rules are set, without disciplined habits, attaining them is impossible. Constituency and Consciousness in following any sort of rule is the key.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"4_What_are_the_benefits_of_money_management\"><\/span><strong>4. What are the benefits of money management?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Money in the pocket is like ensuring there is no hole in the pocket in the first place. Though there isn&#8217;t, running out of capital is very easy. Money management ensures control of your financial status by managing your spending from income to segregate it proportionately into divisions that are equally important than just spending. <\/span><\/p>\n<p><script type=\"application\/ld+json\">{\"@context\":\"https:\/\/schema.org\",\"@type\":\"FAQPage\",\"mainEntity\":[{\"@type\":\"Question\",\"name\":\"What is money management?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"It is a way to track and plan one\u2019s capital in hand be it personal finance, investment or portfolio management, or corporate finance.\"}},{\"@type\":\"Question\",\"name\":\"What is the 50 \u2013 20 \u2013 30 Budget Rule?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"It is one of the money management concepts where the capital after-tax deduction can be set aside in 3 divisions. 50% of the capital is in essentials, 20% in savings, and 30% in wants as a process of budgeting wisely.\"}},{\"@type\":\"Question\",\"name\":\"What are the benefits of money management?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Money in the pocket is like ensuring there is no hole in the pocket in the first place. Though there isn\u2019t, running out of capital is very easy. Money management ensures control of your financial status by managing your spending from income to segregate it proportionately into divisions that are equally important than just spending.\"}}]}<\/script><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Having a bundle of money seems like there are a lot of imaginable numbers in the bank account that seems satisfactory, but&hellip;<\/p>\n","protected":false},"author":4,"featured_media":11980,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"no","_lmt_disable":"","footnotes":""},"categories":[151,28,22],"tags":[18,123,124],"class_list":["post-5119","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-financial-matters","category-strategy","category-essentials","tag-bonds","tag-money-management","tag-investor"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How to do Money Management Wisely? - GoldenPi | Blogs<\/title>\n<meta name=\"description\" content=\"Many people are in the same situation where they don&#039;t know how to manage their money. Learn about the basics of money management wisely.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/goldenpi.com\/blog\/financial-matters\/how-to-do-money-management-wisely\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How to do Money Management Wisely? - GoldenPi | Blogs\" \/>\n<meta property=\"og:description\" content=\"Many people are in the same situation where they don&#039;t know how to manage their money. Learn about the basics of money management wisely.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/goldenpi.com\/blog\/financial-matters\/how-to-do-money-management-wisely\/\" \/>\n<meta property=\"og:site_name\" content=\"GoldenPi | Blogs\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/goldenpitech\" \/>\n<meta property=\"article:author\" content=\"goldenpitech\" \/>\n<meta property=\"article:published_time\" content=\"2022-12-09T16:44:43+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-02-24T11:12:12+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2022\/12\/24111158\/How-to-do-Money-Management-Wisely.png\" \/>\n\t<meta property=\"og:image:width\" content=\"731\" \/>\n\t<meta property=\"og:image:height\" content=\"347\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Abhijit Roy, CEO &amp; CO-Founder - GoldenPi\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@GoldenPiTech\" \/>\n<meta name=\"twitter:site\" content=\"@GoldenPiTech\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Abhijit Roy, CEO &amp; CO-Founder - GoldenPi\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"7 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/goldenpi.com\/blog\/financial-matters\/how-to-do-money-management-wisely\/\",\"url\":\"https:\/\/goldenpi.com\/blog\/financial-matters\/how-to-do-money-management-wisely\/\",\"name\":\"How to do Money Management Wisely? - GoldenPi | Blogs\",\"isPartOf\":{\"@id\":\"https:\/\/goldenpi.com\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/goldenpi.com\/blog\/financial-matters\/how-to-do-money-management-wisely\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/goldenpi.com\/blog\/financial-matters\/how-to-do-money-management-wisely\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2022\/12\/24111158\/How-to-do-Money-Management-Wisely.png\",\"datePublished\":\"2022-12-09T16:44:43+00:00\",\"dateModified\":\"2026-02-24T11:12:12+00:00\",\"author\":{\"@id\":\"https:\/\/goldenpi.com\/blog\/#\/schema\/person\/7b7afc706617dbf29357675946045722\"},\"description\":\"Many people are in the same situation where they don't know how to manage their money. Learn about the basics of money management wisely.\",\"breadcrumb\":{\"@id\":\"https:\/\/goldenpi.com\/blog\/financial-matters\/how-to-do-money-management-wisely\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/goldenpi.com\/blog\/financial-matters\/how-to-do-money-management-wisely\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/goldenpi.com\/blog\/financial-matters\/how-to-do-money-management-wisely\/#primaryimage\",\"url\":\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2022\/12\/24111158\/How-to-do-Money-Management-Wisely.png\",\"contentUrl\":\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2022\/12\/24111158\/How-to-do-Money-Management-Wisely.png\",\"width\":731,\"height\":347,\"caption\":\"How to do Money Management Wisely\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/goldenpi.com\/blog\/financial-matters\/how-to-do-money-management-wisely\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/goldenpi.com\/blog\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"How to do Money Management Wisely?\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/goldenpi.com\/blog\/#website\",\"url\":\"https:\/\/goldenpi.com\/blog\/\",\"name\":\"GoldenPi | Blogs\",\"description\":\"All about bonds online in India\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/goldenpi.com\/blog\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/goldenpi.com\/blog\/#\/schema\/person\/7b7afc706617dbf29357675946045722\",\"name\":\"Abhijit Roy, CEO &amp; CO-Founder - GoldenPi\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/goldenpi.com\/blog\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/753eff78609551874c9773d3bee5eeab7bba3aa40f99a8b2405592eed9d9df89?s=96&d=https%3A%2F%2Fd2zny4996dl67j.cloudfront.net%2Fblogs%2Fwp-content%2Fuploads%2F2026%2F01%2F12111941%2FAbhijit-512x512-1-1-150x150.png&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/753eff78609551874c9773d3bee5eeab7bba3aa40f99a8b2405592eed9d9df89?s=96&d=https%3A%2F%2Fd2zny4996dl67j.cloudfront.net%2Fblogs%2Fwp-content%2Fuploads%2F2026%2F01%2F12111941%2FAbhijit-512x512-1-1-150x150.png&r=g\",\"caption\":\"Abhijit Roy, CEO &amp; CO-Founder - GoldenPi\"},\"description\":\"With over 15 years of experience across fixed income and debt markets, he brings deep domain expertise along with a strong focus on investor education and transparency. An alumnus of IIT Kharagpur and IIM Calcutta, his views are personal and should not be considered investment advice.\",\"sameAs\":[\"goldenpitech\",\"https:\/\/www.linkedin.com\/company\/goldenpi\/\",\"https:\/\/x.com\/GoldenPiTech\"],\"url\":\"https:\/\/goldenpi.com\/blog\/author\/goldenpi\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"How to do Money Management Wisely? - GoldenPi | Blogs","description":"Many people are in the same situation where they don't know how to manage their money. Learn about the basics of money management wisely.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/goldenpi.com\/blog\/financial-matters\/how-to-do-money-management-wisely\/","og_locale":"en_US","og_type":"article","og_title":"How to do Money Management Wisely? - GoldenPi | Blogs","og_description":"Many people are in the same situation where they don't know how to manage their money. Learn about the basics of money management wisely.","og_url":"https:\/\/goldenpi.com\/blog\/financial-matters\/how-to-do-money-management-wisely\/","og_site_name":"GoldenPi | Blogs","article_publisher":"https:\/\/www.facebook.com\/goldenpitech","article_author":"goldenpitech","article_published_time":"2022-12-09T16:44:43+00:00","article_modified_time":"2026-02-24T11:12:12+00:00","og_image":[{"width":731,"height":347,"url":"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2022\/12\/24111158\/How-to-do-Money-Management-Wisely.png","type":"image\/png"}],"author":"Abhijit Roy, CEO &amp; CO-Founder - GoldenPi","twitter_card":"summary_large_image","twitter_creator":"@GoldenPiTech","twitter_site":"@GoldenPiTech","twitter_misc":{"Written by":"Abhijit Roy, CEO &amp; CO-Founder - GoldenPi","Est. reading time":"7 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/goldenpi.com\/blog\/financial-matters\/how-to-do-money-management-wisely\/","url":"https:\/\/goldenpi.com\/blog\/financial-matters\/how-to-do-money-management-wisely\/","name":"How to do Money Management Wisely? - GoldenPi | Blogs","isPartOf":{"@id":"https:\/\/goldenpi.com\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/goldenpi.com\/blog\/financial-matters\/how-to-do-money-management-wisely\/#primaryimage"},"image":{"@id":"https:\/\/goldenpi.com\/blog\/financial-matters\/how-to-do-money-management-wisely\/#primaryimage"},"thumbnailUrl":"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2022\/12\/24111158\/How-to-do-Money-Management-Wisely.png","datePublished":"2022-12-09T16:44:43+00:00","dateModified":"2026-02-24T11:12:12+00:00","author":{"@id":"https:\/\/goldenpi.com\/blog\/#\/schema\/person\/7b7afc706617dbf29357675946045722"},"description":"Many people are in the same situation where they don't know how to manage their money. Learn about the basics of money management wisely.","breadcrumb":{"@id":"https:\/\/goldenpi.com\/blog\/financial-matters\/how-to-do-money-management-wisely\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/goldenpi.com\/blog\/financial-matters\/how-to-do-money-management-wisely\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/goldenpi.com\/blog\/financial-matters\/how-to-do-money-management-wisely\/#primaryimage","url":"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2022\/12\/24111158\/How-to-do-Money-Management-Wisely.png","contentUrl":"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2022\/12\/24111158\/How-to-do-Money-Management-Wisely.png","width":731,"height":347,"caption":"How to do Money Management Wisely"},{"@type":"BreadcrumbList","@id":"https:\/\/goldenpi.com\/blog\/financial-matters\/how-to-do-money-management-wisely\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/goldenpi.com\/blog\/"},{"@type":"ListItem","position":2,"name":"How to do Money Management Wisely?"}]},{"@type":"WebSite","@id":"https:\/\/goldenpi.com\/blog\/#website","url":"https:\/\/goldenpi.com\/blog\/","name":"GoldenPi | Blogs","description":"All about bonds online in India","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/goldenpi.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/goldenpi.com\/blog\/#\/schema\/person\/7b7afc706617dbf29357675946045722","name":"Abhijit Roy, CEO &amp; CO-Founder - GoldenPi","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/goldenpi.com\/blog\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/753eff78609551874c9773d3bee5eeab7bba3aa40f99a8b2405592eed9d9df89?s=96&d=https%3A%2F%2Fd2zny4996dl67j.cloudfront.net%2Fblogs%2Fwp-content%2Fuploads%2F2026%2F01%2F12111941%2FAbhijit-512x512-1-1-150x150.png&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/753eff78609551874c9773d3bee5eeab7bba3aa40f99a8b2405592eed9d9df89?s=96&d=https%3A%2F%2Fd2zny4996dl67j.cloudfront.net%2Fblogs%2Fwp-content%2Fuploads%2F2026%2F01%2F12111941%2FAbhijit-512x512-1-1-150x150.png&r=g","caption":"Abhijit Roy, CEO &amp; CO-Founder - GoldenPi"},"description":"With over 15 years of experience across fixed income and debt markets, he brings deep domain expertise along with a strong focus on investor education and transparency. An alumnus of IIT Kharagpur and IIM Calcutta, his views are personal and should not be considered investment advice.","sameAs":["goldenpitech","https:\/\/www.linkedin.com\/company\/goldenpi\/","https:\/\/x.com\/GoldenPiTech"],"url":"https:\/\/goldenpi.com\/blog\/author\/goldenpi\/"}]}},"post_mailing_queue_ids":[],"_links":{"self":[{"href":"https:\/\/goldenpi.com\/blog\/wp-json\/wp\/v2\/posts\/5119","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goldenpi.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goldenpi.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goldenpi.com\/blog\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/goldenpi.com\/blog\/wp-json\/wp\/v2\/comments?post=5119"}],"version-history":[{"count":11,"href":"https:\/\/goldenpi.com\/blog\/wp-json\/wp\/v2\/posts\/5119\/revisions"}],"predecessor-version":[{"id":11183,"href":"https:\/\/goldenpi.com\/blog\/wp-json\/wp\/v2\/posts\/5119\/revisions\/11183"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/goldenpi.com\/blog\/wp-json\/wp\/v2\/media\/11980"}],"wp:attachment":[{"href":"https:\/\/goldenpi.com\/blog\/wp-json\/wp\/v2\/media?parent=5119"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goldenpi.com\/blog\/wp-json\/wp\/v2\/categories?post=5119"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goldenpi.com\/blog\/wp-json\/wp\/v2\/tags?post=5119"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}