Money ! Money ! Money !
We all pursue Money in our life.But we all face a lot of trouble on how to hold it? How to save it? How to stop get it drained away from you? How to stop the outflow of your hard earned money? The Golden Rule to start with is :
SPEND LESS THAN YOU EARN !! !! !! !! !! !!
This is the most basic but the most simple step to start with.
how can you have more money if you will spend more than what you are earning?
You do not need to be a Harvard Qualified or an MBA Degree to watch your financial matters.
What you need is to do a regular analysis of your money.
Remember,Rome was not built in a day.
You may initiate with a small amount of saving,but that could yield a Stone to the foundation of your Financial freedom.
So let's start with some simple steps:
[1] First step is already mentioned above.That is to "Spend Less Than You Earn".This may sounds obvious to you but it is very important one.You always will be short of money if your expenses are above your earning.Now see, nobody is telling you to stop spending.You can control your expenses until you expand the horizons of the sources of your income.Some of the expenditure may sound inevitable to you,but for that there is a solution that is mentioned below.Do not mean that you should not earn more.No, you can always.But at the same time you have to be careful that your spending does not exceeds your income.So just be careful about your spending habit.Some people may argue at this like "If we not spend more,we will never be able to earn more." OK then but if you fail to earn more than you must have some money saved to backup yourself.That is why it is always wise to "Spend less than you Earn".
[2] Saving money is bit tough to you? Here is a simple exercise which can instantly put you on the way to save money.Suppose you are spending 100 bucks per day or per week.Take a piggy bank or a wallet or any box which you do not use or open often.Now on every 100 bucks spend you have to put 5-10 bucks in that wallet or whatever you choose to put you money in.Get this right as it means that if you spend 1000 bucks in a single time, you have to put 50-100 bucks in you so called saving box.In this way you do not have to control your savings habit.You will be surprised the amount of money saved at the end of the month.Try it and you will enjoy doing that.
[3] Learn about your "NEEDS" and "WANTS".Most of the people cannot differentiate between this two.Let's take an example to make it more clear.Suppose your friend has shown a latest cell phone he has purchased.Now the time you have seen that,you wish that you also could have that or similar kind of cell phone.That is you WANT.When you tend to buy something you have just seen with others,it is your WANT.Instead of that,if you are planning to buy something which you feel that is necessary to you, it is your NEED.So the your needs are supposed to be your necessities,while you wants are your requirements.You can do without your requirements but not without your necessities.People often make their requirements their necessities.Know your NEEDS and control you WANTS.
[4] If you do not know how to manage your money,then let others do it for you.Invest your money in high return providing products.You can invest you money for future assurance also.For example medical claim or insurance investment will save your tax as well as your pocket from accidental medical expenses.Please do not invest in Get Rich Quickly or Get Rich by Overnight Scheme.You soon will be apart from your money rather than a part of it.Money makes money.if you will have money, you can yield more money.Investing in a good return providing products is a wise step to take.Be sure to compare the return rates before you invest.Do not try to risk your money to have overnight results.Also do not make investment of single huge amount.Invest a small amount of money and from it's returns invest further.This will reduce the chance of failure of investment.Always remember, Rome was not built in a day.Give your money some time to bring more time to bring it more money for you.Be assure,it will.Do Just search down the famous Richie's of the world and you will find that they all are good investors.So go on and start investing.
[5] Know your expenses.Suppose if someone asked you to control the John out of the 30 boys playing in the ground and you do not know the John out of them, how would you be able to control him??!! Similarly if you do not know where your money is flowing,what are your expenses how would you be able to control them wisely?Keep a track of your expenses.Nobody is telling you to avoid it as it is not possible in general sense.But at least you can keep the track of them to be aware of that.Knowing your expenses is a bit painful process as it will give you a clear picture of your expenses and may threat you a bit too.But once you will become familiar with it,
it can change your life.You will become more smarter on financial terms as you would be dealing with the most important terms of all time - Money Management.
[6] Use your Debit cards instead of Credit cards.Sounds silly, isn't it?The fact is that the world's most powerful country's economy is tumbling and facing recession and Credit Cards Payments is the one of the reason behind that!!People often forget or sometime ignore to keep track of their credit payments.Due to which they pay more money and interest.Credit cards allows you to spend more or beyond your capabilities.People often spend to purchase unnecessary things through credit cards.They purchase the things which they do not require actually.Debit cards controls you,limits you and allows you to think twice before making any payments.We are not against the use of credit cards,but we must use it wisely.It should be for a proper purpose,otherwise it could lead towards nothing else but a Debt.Keep a track of your payments and due dates,control your frequency of using Credit Card and keep yourself away from unnecessary expenses.
[7] Give yourself a Budget.OH NO.That is the worst thing people would like to do with.Budgeting does not mean that you have to be mastermind to make a budget.Let it be more clear that budget is nothing but a predicted amount you are supposed to spare for your prefixed or pre-figured expenses.The relevance of this is that we can make out the money we would have after allocating it to all the basic expenses and can manage it properly to spend it wisely.Budget often confused with High Level money management.But the fact is that anyone(yes,anyone) can do it.it has nothing to do with degree and certificates.You can be your own financial guru.What we need is to spares some focus or time for it.It is not a subject to afraid of but a simplest subject which anyone can be the master of.You also can be the master of your game.Start working on it Now.
All above mentioned tips are the basic things for any body to initiate towards their own financial structure or phenomena.The more you will apply,the more you will learn about them.Once you will initiate, it will teach you more and more.Even a great athletic or gymnast start with basics in his routine.Stick to the basics,Learn them,swallow them,use them and be the master of them.
Start with this basic things and sooner or latter you will be asked by others to help in the same.
Save money and have money,
my all the best are with you always,
with loads of Love,
mehul0404
http://www.netmoney-mehul0404.blogspot.com/
http://www.killyourfear-mehul0404.blogspot.com/
http://www.bestlinks4u-mehul0404.blogspot.com/
http://www.savefuel-mehul0404.blogspot.com/
Posts
No comments:
Post a Comment