Job Search Budget Planner

Take control of your finances during unemployment or transition. Plan your income and expenses to ensure a stable and stress-free job search.

Q. Where does the money often go after receiving the salary and whose problem is it?

Money often runs out within a few days of salary credit and we don’t understand where it got spent. This is not just your story, but a common problem of the Indian middle class, which has been called the “leaky bucket problem”. This is not a problem of our income, but of our system.

Q. In which three places does money leak mainly in the Indian middle class?

Money leaks mainly in three places in the Indian middle class:

In the name of convenience: Like taking Uber instead of auto, ordering from outside instead of home-cooked food, or using online delivery apps instead of the local market.

Social pressure: Going to fancy restaurants, buying expensive gifts, or buying new clothes for festivals so that there is no pressure of what people will think.

Emotional shopping: Ordering anything online when you are in a bad mood, celebrating something, or getting bored.

Q. What is the problem with traditional budgeting and what is the solution?

Traditional budgeting relies on willpower, which is limited. The solution is smart automation, i.e. setting up systems and tools that automatically save and invest without your daily effort, so that saving money is not a matter of discipline, but of design.

Q. What does “Pay Yourself First” mean and why is it important?

“Pay Yourself First” means prioritizing savings. Instead of saving what is left after spending, first save and then spend what is left. This is an important step towards achieving financial freedom.

Q. What is the “Four Account Simplified Architecture” ?

This is a simplified four-account system designed for salary management:

Account 1: Central Command (primary salary account): This is where your salary comes, and it acts as the distribution centre.

Account 2: Security Vault (high-yield savings bank account): For emergency fund (60%) and goal-based savings (40%).

Account 3: Investment Engine (dedicated investment account): For SIPs and lump sum investments.

Account 4: Expense Management (separate operational account): For all recurring bills and daily expenses.

Q. What are corporate bonds and how are they different from traditional investments?

Corporate bonds are investments that have lower risk than equity and higher returns than debt (FDs) (e.g. 9-12% annual returns). These are better suited for investors who want flexibility and want to grow their investments gradually.

Q. What is the cash flow timing strategy for regular income earners?

A specific cash flow timing strategy is suggested for regular income earners:

1-5th (Foundation Week): Make automatic savings and investment transfers immediately after salary arrives, and confirm them.

5-15th (Payments): Pay all bills like electricity, gas, internet, mobile, credit card bills.

15th (Health Check): Check your account, see if there is any overspending, and make a budget for the next 15 days.

25-30th (Planning): Make a financial plan for the next month, budget for festivals, weddings or any other upcoming expenses.

Q. How do irregular income earners (freelancers/business owners) manage their income?

A “Smart Buffer Strategy” is suggested for irregular income earners. This involves analysing the income data of the last 12 months to arrive at a monthly average income and then setting up fixed protocols for expenses, buffer fund, and business reinvestment based on the income level. Use the buffer fund when income is low, and contribute to the buffer when it is high.

Q. What are the benefits of smart automation and systematic management?

This system reduces stress, allocates money purposefully, helps achieve goals systematically, earns points from credit cards, brings family happiness, builds emergency fund, systematic wealth creation, and helps in tax optimization.

Q. What are the three things one must master to achieve financial freedom?

There are three things you must master to achieve financial freedom:

Making money: It is a skill.

Saving money: It is an art.

Compounding money: It is a science.