Start With Little And Grow Big
Well, we all want to be rich or at least live a decent life, don’t we? Additionally, as the value of money is increasing, people are finding secret mantras for being financially secure. But, as a matter of fact, being financially secure is no rocket science and there are no secret mantras for it. You just need some appropriate ways & guidance to attain that financial security. Let’s find out!
Spend less Save More- Savings= Income–Expenses; is what I’m endeavoring to say here! This evaluation will give you a very simple and easy way to save and spend. One important thing that everyone should practice is to make productive use of their earnings. Limit all your extra and unnecessary spends. Visualize what all you want to have in next five years, may be a house or a vehicle? And accordingly start saving with that as an end objective.
Your Bucket List is your Encouragement- We all have certain goals and a bucket list that we want to achieve in a particular life span, don’t we? So, why not to start off with planning our goals? I would advise you to list down all your goals that you foresee in the near future. Classify these goals into time spans, i.e., if it is a short-term or a long-term goal and work towards it. Remember, nothing can inspire us to save more than our life goals and dreams.
Make a Tight Budget- The main reason for making a tight budget is to control and curb your spending. One of the best ways to save money is to divide the salaried amount into clear expense heads. For example, you can divide it into 4 broad categories/ portions – 30% on house and food expense, 30% for lifestyle, 20% for savings and another 20% for debts/credits/loans etc. As a thumb rule always endeavor to save 10% – 20% from the salaried amount.
An Expenditure Plan to Stay Focused- Expenditure plan is not to crub your spending, but to track your expenses! Thus, make a record all your previous expenses, by doing so, you will get an idea about your spending, which will precisely help you in making your next budget.
Define Spending and Priorities- This is where your major decision reflects. And, if you know what’s most important to you, then cutting back on some of the things that aren’t that important isn’t really a sacrifice, I would say. Managing your extra expenses or rather unnecessary expenses would help you to save more to achieve your goals on time.
Never Invite Debt- Most of you might have some kind of loans or liabilities that need to be paid off. Paying off all major loans should be part of your monthly budget. But, being liable to heavy debts by means of credit cards is not a healthy financial plan! If you are using a credit card, make sure you pay your monthly dues on the due date (or before). *The secret to paying off debt is to determine how much you can afford to pay each month and make those payments consistently.
Invest Smartly- SIP or a Systematic Investment Plan is one of the best ways of investing your money. The minimum amount of investing in a SIP is as less as INR 500, which makes it one of the most convenient investment options for even a youngster.
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