One should manage income and expenses by creating a budget, tracking spending, and making informed financial decisions.
Create a Budget: - Prepare a budget by outlining all sources of income (e.g., salary, bonuses, rental income etc.) and all categories of expenses (e.g., utilities bills, food expenses, entertainment). One must allocate a certain percentage of income to savings and investments regularly and be disciplined about it.
Prioritise Expenses: - After preparing a budget, one should prioritise expenses so as to cover basic needs first. After that, one should think of wants and desires. Unnecessary or impulse based spending should be left if budget permits.
Build an Emergency Fund: - Allocate money for an emergency fund to cover unexpected expenses or financial setbacks.
Invest for the Future: - Set aside a specific portion of your income for investments, to meet your long-term financial goals.