Money is always ultimate.
Earn to save
Eighty percent of those who work at present depend only on their monthly salary. At any situation, most of them are not able to decide on their own and instead tend to allow others and external factors to decide for them. Therefore there is increased expenditure and they tend to forget about savings. They don’t try to save at least a part of what they earn and instead worry about not earning enough to save, thereby deceiving themselves.
It can be managed wisely if one learns to save 20% of what is earned every month. As soon as one gets into a job saving should be initiated gradually. It is not important how much we earn but how much we are able to save every month.
Upgrade your qualifications
All of us have a lingering fear within us that we would be financially suffering if we happen to lose our job at a moment or the company we work for closes down suddenly. There is growing competition among the workers and also among large organizations and companies where we work. In order to tackle those unexpected situations we should improve our skills and talents and keep us qualified on par with the expectations of the companies we work for. This will come in handy at the time of employment crisis. When we are adequately qualified for a job there won’t be any need to worry about loss of job or non-employment.
Is part time possible?
There are two ways to increase our income. One is gaining more income by enhancing our qualifications and skill sets. Second is to try for part time job while continue doing the current job thereby increasing the income. Follow any one of the two ways at the earliest instead of lamenting for not able to increase income foolishly.
Strictly no to borrowing
It is rare for someone not to borrow. The only aim for the borrower is to get the money in the time of need and never the borrower thinks about the ability to repay the money with interest. That is why many of us get money through credit card and are seriously suffering for not able to pay back. It’s not wrong to get money on credit. Housing loan is the best example. Whatever the loan is for, it is better for the borrower to think ten times about the real need for it before getting a loan. Especially it is critical to learn about the rate of interest for the loan amount and then decide to go for it.
Not owning a house!
At present, everyone thinks that it is essential to have an own house. The previous generation could earn a house only at the time of retirement. And there were many whose stories ended without earning their own house. But the current society tends to look down those who do not own a house. Many of us feel compelled to own a house in order to avoid being mocked at. But it is important to remember that owning a house demands huge amount of money and longer commitment to repay the loan and it is imprudent if someone is not having adequate income or salary to go for it.
Many of us impulsively invest on a plan without adequate contemplation about it and begin worrying about it. Before investing on something it is better to weigh the pros and cons, possible return on investment after long duration of fund lock up and benefits to be accrued within the frame of our future needs.
Importantly, it is a wrong notion investing on gold or real estate for future needs. When it is essentially needed, it is very difficult to change the real estate investment into money. But it is easier to sell and change it to money if one invests on mutual funds.
Is investing in shares always a loss?
It is a common opinion that there are more who have lost in stock markets than who profited out of it. There are still others who have a wrong notion that investing in shares is a kind of gambling and therefore avoiding it. Fearing that one will go bankrupt by investing in stocks many have an aversion towards investing on shares.
One gets the fingers burnt only when one chooses to invest on it without learning or knowing about it thoroughly and therefore it is often because of not knowing the nuances of it rather than the loss due to mere investment on stocks. If it is invested for a long period it will grow our money significantly and at the same time help the economy of the country to grow simultaneously.
Insurance staves off risks
At present, most of us are anxious about the fate of our family if something untoward happens to us. Though it is fair to worry about it, the best way to solve the issue is to take up insurance policies to protect us and our family. Instead of thinking and opting for traditionally common policies it is wise to choose Term policies that demand less premium but provide more coverage.
Savings for post-retirement
The average life span of an Indian has grown up to 75 years. Now a days, many of us tend to get retired early the post-retirement period becomes longer than the actual duration of working and earning. If one wishes to earn without working after retirement it is high time to save for post-retirement period too.
Right plan, sure happiness
Many of us suffer in life because of poor or improper planning. Proper planning and execution is the pre-requisite for any plan to be successful and one should allot adequate time and effort to prepare a workable plan with consideration of key contributive factors. One should be able to predict the future needs and arrive at a goal and then find the means to generate fund towards fulfilling the goal. If you are able to draft such a plan you do not need to be anxious about any financial crisis in due course of your life.
(This article originally written by B Padmanaban - Financial Advisor for Nanayam Vikatan is now reproduced in English by Amalan Stanley)