When you start earning, you are on cloud nine. You have become independent so you throw parties with your friends, buy all those gadgets and other costly items you always wanted and splurge. You hardly realize that all that money could be used for better purposes like saving, investing and purchasing insurance. Even if you know, you might be confused as to where to start, when to start, how to start, etc. This feeling is natural since you are new to investing and finances. You can easily catch up with that by reading further. India’s First Free Online Financial Advisory Moneymindz
1. Pay yourself first
As soon as you get income, pay yourself by saving a part of each monthly income. This practice (saving before spending) goes a long way into ensuring your financial well being. You will be able to save more and better only if you begin saving first.
A budget contains your monthly income, expenses, savings, investments, insurance products, financial goals and time frame to achieve them. The budget will reveal how much you spend versus how much you save out of how much you earn. India’s First Free On call Financial Advisory Moneymindz
3. Every drop counts
Each drop of water counts to make a river. Every paisa you save will make you more money in the future. So save small amounts regularly. Once you have accumulated a sizable portion of such small savings, invest.
4. Create Emergency Fund and Retirement Fund
The Emergency Fund must contain at least 6 to 12 months of your income and is meant to help you financially during emergencies like loss of employment, hospitalization, etc. The Retirement Fund is you provide income to you during your golden years. These funds should beat inflation, so invest accordingly. Kuber Mindz, Smart Financial Advisor
5. Differentiate between a “need” and a”want”
Needs are basic necessities like food, shelter, clothing, medicine, etc. Wants are desires for more which can never be satisfied and will only lead to misery and debt. Once you understand this, you should find it easy to know what you need and what you don’t.
6. Be old-fashioned in terms of finances
Walk to your nearby stores with a list and enough cash for what necessities you need with you. No cards, no online shopping and no carrying too much cash. This will make sure you buy only what you need and perhaps a little comfort.
Managing your money isn’t tough if done the right way. For more information visit www.moneymindz.com or give a missed call to 022-62116588.