Personal Finance For You

'Money Saved is Money Earned'

(An 'A to Z ' personal finance for you)

is very simple truth.Here, i would like to share all my wisdom,that i have learned over years after spending too much and realised recently what a fool i was.

In all my workshops, i used to insist my participant only one thing , i.e.- Raise the Individual's
'Financial Quotient'-FQ.

Why to raise the 'FINANCIAL INTELIGENCE' ?

if, the individuals are aware about this they can be free from all their debt.The Debt, that burdens the family and the society or the nation as a whole is like a concer which must be healed immediately.

The recession and other major financial debt burden that shook the world recently can be simply eradicated, if we all take/initiate an effort to educate the 'FQ' among every individual including children. In my personal view, our educational system must incorporate the financial intelligence as part of the curriculum apart from IQ,EQ,SQ.

Our children/students need to learn this,that will enhance a better society which is free from the Debt Burden/Recession and finacial crisis in micro and macro levels.Educate your child as much as you can about FQ. So that, it will make them to minimise their expanses and they also realise the hardwork involved behind that money.It is one way of teaching responsibility.

for e.g -

if your child ask you a 'New Pencil' often...
Do not simply buy an give it - Instead, Ask the old pencil,even it is very small and un-usable no problem , just collect the old one and give them a new pencil.

This will make your child not only financially intelligent person but also as a responsible individul.(Same thing for Eraser,crayons,water colours.)

Do not encourage them to eat more chocolates,kurekure and of that kind,it may spoil your child health and memory.

You can gift your child the ' MONOPOLY ' game board and play with your family.it is going to be fun,educative and enduring.(instead of wasting time in computer games that spoil eye sight)

Lack of 'FQ' Will make the individual and society sick.if one is weak financially.,just by his/her own inefficiency. That is not only going affect that individual/person alone, it will affect the family and the overall society as well . (I Remember the Indian frog story)...

Why socialism in our world that failed was also because of the lacked financial intelligence of an individuals during those time.These individuals who were part and collectively made a society that failed. Here 'The rich will become poorer; and the poor become more poorer'. Logically it is incorect.if the society need to be raised/uplifted.It is very much indeed to raise the 'FQ' among every individuals/ citezen of the nation, who is going make the society as a whole ' rich and wealthy' . if this is achived, then the situation is like - 'The rich will become more Richer and the poor will become Richer' it is logically seems to be a right solution.

Wealth can be created. if, one is aware and keen in attaining it.Your passion to be rich will make you rich.i also insist you one more important thing is - 'choose your career as per your passion'. when one's passion becomes one's career that is the ultimate gift that life can offer unto oneself .what ever wisdom you have gained over years, you can very well share and encourage/educate your fellow mates to create wealth. only educate, do not offer money as a loan, it may spoil them and also your relationship or friendship with your beloved.

 

' Do not catch and feed the fish to sombody;

instead teach some one,

'HOW TO CATCH THE FISH ON THEIR OWN '

Here are the few steps , that nourishes your financial intelligence.

A. At first, Define your 'NEEDS and WANTS' . Spend within your limits. 'Your expenditure must be less than your income'.[Thumb Rule]

B. Avoid Over spending and 'Pay your-self first' Atleast every month save little money of your Earnings for your ownself. e.g.- 5% to 10% of your total income.

C . Carry a pocket note book with you every where. just write down all your out flow money when ever possible. At night, spend few minutes to look out your spending...make a total spending of that particular day.Now, just make a strike mark of the un-wanted spend-OUT's as per your heart and total the unwanted. just notice and be aware. ' Each penny counts '. understand the Micro finance properly.

D.Identify your money out-flow that is going for no use. for e.g.- i used to drink more tea as and when i wanted. 'i used to take tea even after a meal ' which is not necessary,not only that it also spoil my health. 'Underline your your unwanted-wants! '

E.When you are going out with friends be watchful about your un-necessary spending . i did'nt mean to be stingy .You can always 'spend for the need'.

e.g. - When we go to hotel we simply order many items in the menu.Afterwards... unable to consume the whole food and simply waste it. [ Do not waste food.Many people in the world die out of hunger].

F.Always save money for the future needs and for your children educational needs and medical attention.Always keep some money for emergency for the unexpected.(if you have more children have more money for emergency) 'Safety first'

G.Have a finacial fore cast for daily,monthly and yearly basis.

 ' forsee the future ' -needs.

H. Do not make any hurry burry decision as far as your money is concerned. 'Be Affirmative unto your self ' be in your balance in all situations that may insist you to make wrong financial decisions. e.g.- Investing money for unusual intrest in private fund agency or such..give up all your greed.

I.Do not invest money ever in a single source,spilit it up your investments in fixed deposit,gold, land,stocks,etc. 'Personal portfolio is the best'. Here one must see the investment should not lie in a Savings A/c.because the infaltion will eat out.The investment should not be idle it must progress.So choose your advisors or do it on your own wisely.

J.Avoid credit cards, if you don't know how to use it for your favour. ' Check your own credibility ' .

K. Avoid / Do not encourage friends to ask money as a loan. 'Learn how to say NO'. Let your friendship grow ever.

L. Do not avail loan for your wants, just because it is easily available.simply reject all phone calls that offer easy loan like EMI's. say strict NO.'Un-Burden youself and be free from Debt '.

M.Invest your money wisely,i mean your investments must make an additional source of income on monthly basis.Like SIP-Systamatic investment plan. 'MONEY MAKES MONEY'. Vist our 'SEED' Blog> http://seed4wealth.blogspot.com/

N.if you are using car/bike plan your travel properly.Do not go round and around,have route map to attain your destiny point as shortly as possible,that save fuel.Go by walk when ever possible or when you are going to near by shoping. 'Save Time and fuel energy '

O.Have your own garden and do vegitation. if you have enough land around the house. 'Go green,support carbon credit'.you can also convert your terrace as 'Terrace garden' that give you a yield and reduce the heat during summer.

P.SAVE - Water and Electricity as much as you can."Energy saved is energy earned'

E.g.- ' SWITCH OFF ' The Monitor/Fan/Light When your are moving out of the room even for 10 minutes.You can save electricity by not using the electric heater for heating the water for bathing during summer time. 'Consume less energy'.Also suggest you to use alternate energy. e.g. Open terrace solar panels / miniature wind mills.

Q.Avoid drinking/Smoking/Tobacco chewing etc... to save money as well as to keep yourself healthy.'HEALTH IS WEALTH'.

R.Save money and also spend money for lifting the under-priviliged. Do charity and always be socially responsible.When you spend money for the good cause that for your society that will motivate you to make more money. 'MONEY SPEND IS MONEY EARNED'

S. Limit your telephonic coversation 'TO THE POINT' Be precise and there by you can cut down/reduce your fat phone/mobile bills.Communication can be made very effective in short duration by fallowing the 'KISS' Principle.(keep in simple and sweet). Apart from this choose the best sevice provider among the all. Check out all the schemes like pre-paid,post paid,roaming within State/Nation and so on with all service provider and select a best suitable player for your need as for as quality standards and cahrges wise concerned.Apply the same rule for your internet service provider.There are lot of hidden charges are there in the market place, just be aware and choose the best that suits&worth for the money you pay.

T.Eating out is just fun for many people in the family.I have seen in many family's, the member among them are keen in eating outside in a hotel. if your are very much concerned about your health reduce your habit of going to hotel frequently for food and also avoid eating junk food items.Mainly fried items, it immensely spoil your system/Health and that may lead you to a Doctor..and all testing,scanning etc.I need not to tell you about the hospital charges and the cost of medicine.So, do not eat food outside as posible as you can,that will be safe and also can cut down your medical bills.(Duedads). "Medication is the better than Medicine"

U. Use 'Maximum' of all your resources effectively.Let me say, right from your kitchen - Save Gas ,avoid spilling of the provisions while cooking. Do not buy vegetable/fruits and other perishable items beyond 5 days need. E.g.- Rice flour,tomato,fruits -all these items will be rotten soon. ' BUY FOR THE NEED ' So,buy for the needs there is no point in storing too many perishable items in the kitchen.

V.Collect the wastes which is 'Recyclable' - You can collect the usefull/recyclable house hold waste like news paper,plastic bottles,milk covers,metal waste...and keep it in a separate place in your house like car shead and put all these wastes together in a box , when ever you find them. Every Three/Six months once call your scrap vendor and sell it for weight basis, you may surprise to see some good money.Keep this money and Use it only to buy a health items/equipments.

e.g.-Health drinks like Horlicks or GYM equipments etc.

This act of your's can save the nature - the paper can be recycled and there by save some tree's which used to cut for manufacturing papers in the paper mills.Support to recycling and 'SAVE NATURE'.

W.If you have some creative talents just identify it and fuel your creativity as much as you can.For e.g.- if you are good at art/craft/painting do it in your leisure time.'Grow your passion of creation' .it can help you to relax so much from all your occupational stress.Not only this you have one more advandage from your creation.whatever items you produced you can gift to someone when you are attending Birth day parties or marriage etc.You can avoid buying gift items outside,instead create your one as per the taste of your closed one's and present them,that will impress them so much with your personal touch.E.g- You can do your own oil paintings/craft work.

X. Plan your outings/Tour trips well in advance and book a tickets as per your plan.Your planning and scheduling must be skillful .it could be- time saving,the mode of transport and the boarding arrangements etc. Package tour can be good.because you can simply free from lot of burden booking this and that.The tour operators can handle it in better way.

for example they know the short routes to connect various destinations and the timings when and where. The point here, i need to make is...avoid un-nessary stay over in hotels,you need a stay only during night after a long journey,so that you can be fresh in the mornings and go around the places/spot and enjoy it throughly.Also consider- 'Less Luggage; More comfort'

Y. Keep your mind open for the opportunities around. Be watch full and 'keep information upto date'.

For example- every day the technology is getting advanced,if you need to buy a laptop,you must be aware what is the system configurations required that suits you the most and its availability.The Ram,hard disk,processors and the mother board compatability.This will make you to aware about the best buy for the reasonable cost.During festival time there will be lot of offers,price discount,additional gift etc.Make use of such an opportunity.

Z. ' Zeal and zest ' that needs to be there as a under-current in your being.That will make your life complete...what ever you may do will be wonderfull and blissful .be in tune with yourself and compassionate to other beings and stay healthy and wealthy.

NOTE- *The Bold and Italic quotes within the

'Quotation'

will be explained in detail latter on.*

                                       Written By.Ramani.G

(This article is copy righted need permission for re-publication anywhere)