In my last post, I made a sample accounting and  ended with showing income-expenses as savings.(income minus expenses to savings). Seemingly correct process but if you look a little deeper there is a potential flaw in this process.In our early days, we have seen our parents handing over the income to the womenfolk in the houses be it our grandmother or our mother and the first thing the woman will do was to drop some money in the small mud pot or any other vessel and then keep the money in the pooja room before taking out for expenses.The small amount of money that she dropped in the mud pot  was not to be taken lightly as many a time we have seen whenever the menfolk ran out of money the lady used to break the pot and give the amount saved in that to him.mind you it was always substantial and saved the blushes for the man. Coming to our modern life it is equally important that the first expenditure we make from the salary is also towards savings. As a rule of thumb, they say at least ten percent of the salary goes towards savings.Be it a bank RD or rmutual fund SIPor any other form of savings one is comfortable with. The family should resolve that there is no compromise on this. Now rewrite the equation

Salary-savings =expenses. This is a very simple but important equation based on which our journey will continue.