Creating and sticking to a budget is essential to achieving financial wellness. In Pakistan, where the average household income is around PKR 45,000 per month, budgeting can help individuals manage their finances effectively.
How can you budget?
- Start by calculating your monthly income and expense
- Categorize your expenses into fixed and variable
- Set financial goals and prioritize your spending
- Use budgeting apps or spreadsheets to track your expenses
Saving is a critical component of financial wellness. However, in Pakistan, where the savings rate is only 10.2% of the GDP, it is essential to understand the benefits of saving and develop a saving habit.
How can you save on a limited budget?
- Start by setting realistic saving goals
- Automate your savings by setting up a standing order
- Cut down on unnecessary expenses
- Explore investment options such as savings accounts, fixed deposits, and mutual funds
Retirement planning is essential for long-term financial wellness. In Pakistan, where only 10% of the population has a pension plan, it is important to start planning for retirement early. Here are some tips and tricks for retirement planning:
- Calculate your retirement needs and set retirement goals
- Start saving for retirement as early as possible
- Explore retirement plans such as pension plans and individual retirement accounts
- Review your retirement plan regularly