Sunday, 19 November 2017

BEST TACTICS FOR MONEY MANAGEMENT -1

     AVOID 7 MISTAKES   TO ENRICH

 FIANCIAL SOUNDNESS


The greatest evils and the worst of crimes is poverty; our first duty, a duty to which every other consideration should be sacrificed, is not to be poor.  - George Bernard Shaw

       God helps those who help themselves Every household has got its own unique   fundamentals as  far as its financial quotient is concerned. Based on basic foundation,   all the family members have to make out their strategy and planning to survive in this world with the optimum level of  self-reliance in the money matter. Whatever your position may be or the status you can make it big if you avoid the following mistakes in a not so haphazard   manner.

1.    1  DO NOT SKIP TO FOLLOW UP A FAMILY BUDGET.


Cheerful family Portrait royalty-free stock photo

Due to the hustle and bustle of the modern life we omit to chalk out a budget according to our resources and dreams.
A home budget would include the daily expenditures and income , assets and liabilities , our goals in  the form of targets. There are many an App for making a budget and we can use it taking into account the following three Rs


Record:. You have to enter all the financial transactions both current and future

Review : Now and then we have to review the position so as to take stack of the situation so that we can make note of the progress and failure on our part and make necessary correction.

Revise: your budget to suit to your aims and take into account your limitations.Discuss your short term and long term goals. Split them into manageable and achievable small jobs .

This budgeet planning and execution should be performed as a fun game and we should not do it as a stressful one.

2.      2 DON’T FORGET SAVINGS.


savings free image க்கான பட முடிவு

We have to save for the unforeseen circumstances and unexpected situations

The standard formula for the same is as follows

INCOME – SAVINGS = EXPENDITURE

Where there is a will there is a way. Put every month a small amount towards savings and over a period of time it would grow up to help at trying times. Work out the monthly income and expenditure to find out the amount you can save in month. Taking the same as the base amount we can fix a target of 10% addition to the  same . Like this you have to increase the addition so that you could save a sumptuous amount over a period of time. 


You can put money in a box containing various small containers and keep the cash according to your regular heads of expenditure. For example you can put a sum of Rs 10000 for grocery in a container and note down the total expenditure for this category . Like this you can use separate boxes for other categories also. Whatever remains should be tallied with your accounts . This helps us to study the pattern of how and where we the money goes.   

3.     3 DON'T IGNORE INFLATION


inflation free image க்கான பட முடிவு

Inflation eats away the value of our asset as such we have to plan our investment in such a way to take care of it.Any erosion in the value would result in loss and taking to a lower level 

The follwing three aspects we have to consider when we go for an investment.

1 What about the reruen after taking into account inflation, income tax and other chargees?
2 Whether sufficient care is taken to cover the risk element?
3 Whehter we go by the herd mentality and invest or  have we done our homework and do it on our own ?
4  DON’T PUT AL THE EGGS IN THE SAME BASKET.
All of Your Financial Eggs in One Basket royalty-free stock photo

The very old wise advice to spread out our investments to various category just because our needs would vary according to the time and change in our position. Various types of investment are available in the market to suit your purse and the risk factor . Investing in a single category would be very risky as this would lead to jeopardy of loss in the   event   there is a fall in the value drastically. Suppose you buy a  plot making a huge  investment if there is no appreciation of value you would have to  settle with lesser profit on this .Hence you have to be more vigilant in making investment.

Diversify your investment and derive the maximum benefit. Buy low and sell high should be our mantra in creating our wealth .

DON’T PLAY WITH HALF KNOWLDEGE.

half knwledge free image க்கான பட முடிவு



Before making a financial transaction, buying, selling or investing we have to study and make research so that our decision would not take us to a great loss. .At least we should not be carried   away by the ads . Things would be exaggerated and we may feel frustrated afterwards .Without thorough knowledge we may make mistakes in our judgment.

6. DON’T FALL PREY TO DEBT TRAP.


free from debt trap image க்கான பட முடிவு

Once a debtor always debtor .So goes the red signal as far as debt is concerned.  Try to live within your means. If at all you want to get a loan you follow the golden rules.
1.       For a purpose only the loan should be availed.
2.       From a recognized institution you should avail the loan.
3.       Work out the possibility of payment of EMI .
When you use a credit card take into account the following precautionary measures .
1.       Go for those articles or consumer items like gadgets if at all you want to have them in the real sense .
2.       Pay the bill as and when it is due date avoiding  penalty.
3.       Don’t go beyond your capacity.

7. DON’T OVERLOOK FINACIAL PRODUCTES LIKE INSURANCE  AND MUTUAL FUND


insurance free image க்கான பட முடிவு
We have to understand that there are many a product which gives us support at the time of our distress. Suppose one of our family falls ill and suffers from chronic disease we can not afford to spend the medical expenditure. So we have to take insurance policies to come to our rescue .Similarly we have to understand the financial  products  and utilize them for our benefit .

Time and tide wait for no one.
Mutual funds investment is a safe one provided you study pros and cons of the fund you have chosen .The brochure on them itself gives a warning about the risk involved  in them. This type of investment gives us an opportunity to earn the passive income and  hence it has to be encouraged.

MAKE THE BSET USE OF INTERNET AND TECHNOLOGY.

There are so many Apps to handle this money matter. In the smart phone itself you can download from Google play store . If you punch the data you could get all the tips and tricks to monitor your financial journey. We can get from the internet  all the golden   guidelines and the  fantastic  suggestions for improving our economical status in the society and be financial literate.  

Only an open and eager  mind and echt willingness to learn  are necessary to achieve our  dreams and  stabilize our financial freedom.

There is no shortcut for wealth creation. Only hardwork,discipline,integrity ,sustained efforts  and  prudenence alone  pave way for long term  richness.


FOCUS WITH 100% ATTENTION 
MAKES YOUR DREAMS A REALITY 



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6 comments:

  1. This comment has been removed by a blog administrator.

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  2. Great tips! Money 101, have a budget. With today's technology, everyone should their know their financial position at all times. It's the only way to make truly informed financial decisions!

    ReplyDelete

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