Most of us are only concentrating on earning money and that
too, we always feel we are earning less. But is this true? Well, on the hind
side, we will always be earning less than our needs and wants. So what is all the fuss about financial security and how can we gain it without saving as much as our family did when we were young...
A life in today's age is worth lived only when you manage to enjoy as well as save so that in future including emergency, luxury, show-off all expenses are managed.
Say you earn an x amount. Save atleast 10% of it every month. Set two targets in one single year to be achieved.
* Gadget and gold
* Gold and investment in mutual fund
* Gold and investment in FD
excreta excreta... Anyways what does this count down to... Let's say you save Rs.5k per month and accumulate the amount for a year, it boils down to saving 60k per year. While you are getting a hike next year, your savings account should also get a hike. 60k from the normal salary + medical and other reimbursements if saved, you will definitely save about 75 grand in a year... This saving can immediately start after the first six months of your first day of joining work! I am sure whoever is reading this, has started earning since at least a year now or probably more than a year.
Why there is a combination of two targets every time?
As you might have noticed, gold remains stagnant. Gold, be it for guys or girls is a big time saving in the long run as while they are gonna commit the biggest mistake of their life, in terms of 'marriage', they would need this metal being shown off big time. Last few years have definitely raised the price of this metal, making it very difficult for the common man to buy the product. So when the girls may buy the metal in different shapes like bangles, rings, necklaces, etc at different intervals, the boys can buy the biscuit. Please note that the moment you have enough money to buy the smallest product, please buy it asap as the prices of this yellow metal are rising sky high day by day.
Now, we move to the new bracket of why gadgets, investments and life insurances stand. Each guy & girls these days are crazy about gadgets ranging from mobiles, ipad to iphone so while you buy these and ease your life, you definitely need to ease your future by first buying life insurance, mediclaim and then invest in mutual fund & FD, which is the safest. Life insurance here does not mean the normal high priced insurance wherein you pay certain amount yearly and then get a big chunk on dying. Don't buy it until you have a big liability left behind for your family if you die. Pester your advisor and yourself research on the new schemes including the ones wherein the pension scheme is combined making it profitable for your old age. Please remember, the younger you are while you buy your scheme, the less is the premium.
You will notice that these things might initially hamper your lavish expenses and make you skip 1 or 2 outings with your friend but will benefit when rest of your gang is struggling with basic amenities. Remember, the girl or the guy for whom you want to go into that outing will never pick you for a lifetime, if your analytical and financial management skills are of the 18th century.
Please research yourself as much as you can on each of the topics. As you move ahead in life, loans will keep you in debt for a lifetime, break the circle with your innovative skills. Refinance the loan once you are stable. Buy amenities that you need, coz you are born once and this time will also come only once!
This blog is an attempt to provide information to the new generation so that they do not commit the mistakes I and many others did.
A life in today's age is worth lived only when you manage to enjoy as well as save so that in future including emergency, luxury, show-off all expenses are managed.
Say you earn an x amount. Save atleast 10% of it every month. Set two targets in one single year to be achieved.
* Gadget and gold
* Gold and investment in mutual fund
* Gold and investment in FD
excreta excreta... Anyways what does this count down to... Let's say you save Rs.5k per month and accumulate the amount for a year, it boils down to saving 60k per year. While you are getting a hike next year, your savings account should also get a hike. 60k from the normal salary + medical and other reimbursements if saved, you will definitely save about 75 grand in a year... This saving can immediately start after the first six months of your first day of joining work! I am sure whoever is reading this, has started earning since at least a year now or probably more than a year.
Why there is a combination of two targets every time?
As you might have noticed, gold remains stagnant. Gold, be it for guys or girls is a big time saving in the long run as while they are gonna commit the biggest mistake of their life, in terms of 'marriage', they would need this metal being shown off big time. Last few years have definitely raised the price of this metal, making it very difficult for the common man to buy the product. So when the girls may buy the metal in different shapes like bangles, rings, necklaces, etc at different intervals, the boys can buy the biscuit. Please note that the moment you have enough money to buy the smallest product, please buy it asap as the prices of this yellow metal are rising sky high day by day.
Now, we move to the new bracket of why gadgets, investments and life insurances stand. Each guy & girls these days are crazy about gadgets ranging from mobiles, ipad to iphone so while you buy these and ease your life, you definitely need to ease your future by first buying life insurance, mediclaim and then invest in mutual fund & FD, which is the safest. Life insurance here does not mean the normal high priced insurance wherein you pay certain amount yearly and then get a big chunk on dying. Don't buy it until you have a big liability left behind for your family if you die. Pester your advisor and yourself research on the new schemes including the ones wherein the pension scheme is combined making it profitable for your old age. Please remember, the younger you are while you buy your scheme, the less is the premium.
You will notice that these things might initially hamper your lavish expenses and make you skip 1 or 2 outings with your friend but will benefit when rest of your gang is struggling with basic amenities. Remember, the girl or the guy for whom you want to go into that outing will never pick you for a lifetime, if your analytical and financial management skills are of the 18th century.
Please research yourself as much as you can on each of the topics. As you move ahead in life, loans will keep you in debt for a lifetime, break the circle with your innovative skills. Refinance the loan once you are stable. Buy amenities that you need, coz you are born once and this time will also come only once!
This blog is an attempt to provide information to the new generation so that they do not commit the mistakes I and many others did.
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