Hi, I m 54 year old married person, Last couple of years I am in contact with my 25 year old friend ( Age 50) Who had earlier severed relationship with us under the pressure from his wife. he is undergoing his divorce process now and hence he again reunited with us. Last 3-4 years my relationship with my wife ( Age 50) got sour due to one or the other reason and fault/negligence from my side. Meanwhile My friend and My wife are in close contact and they usually go for outing and he also come to our house regularly for chilling. I know this age is not for attraction/carrying out extra marital affair but last few months My wife always quote her name, make comparison between me and my friend how he takes care of her as compared to me etc etc. Also our small routine arguments gots heated when she utter a word "Separation/Divorce" etc etc. I feel very hurt when I am being threatened again n again for this. At this age I cant force my wife to cut down all relationship with that friend and also can't tell that friend to stop contacting my wife as they both are 50 year old matured person. I am just keeping calm 9 out of 10 incidences but that 1 incidence I am worried that everything will be ruined. We ( (Me n my wife) have struggled a lot to make our life stable and came out of deep financial crisis. Now at this stage I cant see or don't want to face this type of problems. Can u suggest any way out. Please.

Ans: Many people face the challenge of earning a decent salary yet struggling to save. If your expenses absorb your entire income, it’s time to take control of your finances with a structured approach. Here’s how you can break the cycle and start building financial stability.

1. Track and Analyse Your Expenses
Identify spending leaks by tracking all expenses for a month.

Use spending tracker apps or a simple notebook to record daily expenses.

Categorise expenses into essentials (rent, food, utilities) and non-essentials (shopping, entertainment, eating out).

Spot unnecessary expenditures and set limits on avoidable expenses.

2. Set a Realistic Budget
Follow the 50-30-20 rule:

50% for needs (housing, bills, groceries).

30% for wants (shopping, entertainment, travel).

20% for savings and investments.

If savings seem difficult, reverse budgeting may work better. Allocate savings first, then spend what remains.

Automate bill payments to avoid late fees and unnecessary penalties.

3. Build an Emergency Fund
Set aside at least 6 months’ worth of expenses in a liquid fund.

Use a separate savings account for emergency funds to avoid spending it impulsively.

Automate transfers to this fund to ensure consistency.

4. Prioritise Saving Over Spending
Start small with savings if your expenses are tight. Even Rs 1,000 per month creates a saving habit.

Use automatic deductions to ensure savings before spending.

Increase savings percentage whenever you get a salary hike or bonus.

5. Cut Down on Unnecessary Expenses
Identify subscriptions you don’t use (streaming services, gym memberships).

Reduce frequent dining out and start cooking at home.

Choose budget-friendly alternatives for entertainment, shopping, and travel.

Negotiate for lower bills on rent, internet, and insurance.

6. Start Investing Wisely
Keep money working for you through investments rather than letting it sit idle.

Consider mutual funds through SIPs to build wealth over time.

Avoid investment-cum-insurance policies. Instead, opt for a separate term insurance and investments.

Invest in a mix of debt and equity based on your risk appetite.

7. Avoid Lifestyle Inflation
Salary hikes should increase savings, not expenses.

Maintain your current lifestyle and direct additional income towards savings.

Differentiate between needs and wants before making big purchases.

8. Plan for Future Goals
Define short-term and long-term goals (buying a home, early retirement, travel).

Assign a dedicated investment for each goal.

Adjust spending habits to align with your bigger financial vision.

9. Monitor and Adjust Regularly
Review your budget every 3-6 months to adjust based on changes in income or expenses.

Keep track of financial progress and celebrate small wins to stay motivated.

If needed, seek guidance from a Certified Financial Planner (CFP) like us for a customised financial strategy.

Final Thoughts
Breaking the paycheck-to-paycheck cycle requires discipline and consistency. By tracking expenses, budgeting wisely, saving first, and investing smartly, you can achieve financial stability and long-term wealth creation. Taking small but steady steps will lead to financial freedom in the long run.

Best Regards,

K. Ramalingam, MBA, CFP
Chief Financial Planner

www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment