Hello readers, here are our financial tips for this week:
Monthly savings: Save and invest about 25% of your income or earnings every month if possible. If 25% is large due to your other commitments and obligations, try as much as possible to save up a percentage for the rainy day.
If you wish to invest in public companies, check out the annual results of public companies, see news during those days, invest in the company with best results and good growth rate and forget for at least 5 years.
Compare your life with your own past and future, instead of comparing it with others and envying their possessions.
Monitor your EMI: Equated Monthly Instalment (EMI) is a fixed payment made by the borrower to a lender at a specified date, each calendar month.
Equated monthly instalments are allocated towards both the interest and the principal each month, so that over a specified number of years, the loan is paid off in full.
Make sure that the EMI of your home loan must not be more than 30% of your combined family income.
Shop less: Shop less but shop good, good quality accessories like clothes and shoes have an excellent life.
Maintain your belongings: Keep your belongings with love and care, give adequate maintenance, so that they can love you back for a longer period.
Be careful with your credit/debit card: Keep your credit card with love, don’t let it be swiped by any ruthless machine, use a debit card for that purpose.
Repurpose your gym fees: Put your gym fees in a pension plan so that you can stay fit when you need the most, in the meanwhile brisk walking, jogging and exercising will sail your boat quite well. (No offence to gym lovers, this point is for people who repeatedly buy gym memberships and stop going after a week)
Cut cost on AC: Set an alarm, switch off your AC at 4 am in night, you don’t need it after that. Also use a combination of fan and low power AC.
Take care of your family: Keep your family happy, so that they don’t always look towards monetary sources of happiness.
Delay non-compulsory expenses.
Plan for emergency: Create an emergency fund, a Recurring Deposit maybe, keep adding money every month and forget until you face an emergency.
Go your own snacks: Keep a packet of biscuits handy everywhere you go, and a water bottle if possible.
Buy a good phone: Invest in a medium range good phone, which has a stable life and can keep you happy and entertained.
Your health is vital: See a doctor in time, so that you end the matter in thousands and not lacs.
Teach your children management by letting them manage their expenses from a limited sum every month. This will also promote saving.
Save for equipment, vehicles and accessories, this not only saves you from paying interest but delays expenses.
Don’t put your children in the best school, put them in a good school, to save comparisons and envy with rich kids and avoid lootings conducted by school management.
Go to a cinema hall with a full stomach, so that you come out with full pockets.
More so, compare your life with your own past and future, instead of comparing it with others and envying their possessions.
Finally, planning, evaluating, thinking and investing are the key for better management of finances.
Did you miss our last week’s financial tip? Click here to read it.
Don’t forget to check out for more financial tips next week. If you have any suggestion or question, don’t hesitate to use the comment box below.
