Saturday, February 27, 2021

Basic Money Advices

Basic Money Advices

There is no one in this world who would not want some more money saved in his/her bank account. If there is anyone who is ready to give us some money tips, we are all ears for it. Over the years, I have come across multiple money-making advice, however there are a few I would like to share with you all on this platform. I believe that if all of us choose even one of these pieces of advice and follow it religiously, we can be better off than what we have been so far when it comes to handling money. The more we put it into practice, the more success we shall find in this aspect.

Focus on Increasing Your Income, Not Savings: This particular advice can be considered only if we are good at saving money and have enough savings. We are mostly under the impression that the only way to increase our income is to do overtime or start our own freelance business. As much as we can consider it, here it is more about increasing our savings just by investing that can pay us dividends for the rest of our life.

Invest Most Of Your Income: Investing is the only way we can increase our income or savings way more by not putting in those tedious hours at work. If we are independent or staying with our parents it would only be wise to invest at least 50% of your income for better returns in the future. It can help us in getting financially independent at an early age post which we could look at converting our hobbies into our profession.

Invest in Only What You Understand: Whether it is about investing in art, or investing in farming or investing in a restaurant etc ensure you know where your money goes. Investing without understanding the running costs, the market, the tricks of the trade etc can bring not only loss but also put you in debt. Hence, it is critical we understand every point in black and white and only then give ourselves a go ahead.

Money Is A Numbers Game: Even though money is a numbers game, we need not know all the mathematics formulas we learnt all our life. If we know and understand the basic calculation in mathematics and can reason it out, we will be better off. Money is nothing but a measuring tool that helps us understand the worth of something as per the economy of the country. It is not a real thing. However, it is important we keep a tab on our income, expenses and investments consistently to understand the progress of it to ensure we do not fall behind in this game.

Control The Time: Time is the essence to make money. In order to make good money we not only need to have a good idea or a good product but the time in which we are living currently also plays a very important role. Eg: If a mobile phone was invented when there was no electricity, it would not have any value. Hence, it is important to control the time we are in and accordingly make our choices when it comes to education, business as well as investments. We all know we cannot control the time literally, however our actions during a particular time period can dictate if we are moving ahead with time and making the best of it or going against it.

Always Negotiate: We being Indians have this quality of negotiation inbuilt within us since the time of birth. Whether we are buying groceries, or electronics or even real estate, we do not feel content unless we have negotiated a price of our own which is less than the asking price. This is definitely a quality to learn and master as every penny saved is a penny earned. Negotiating a price that we are comfortable with paying is one way we are not only saving money but also making money to financially secure our future.

Do Not Spend Money You Do Not Have: Today in this age of technology where we can purchase anything at the comfort of our home. It is rather challenging to control the urge of spending money all the time. At times we are so lured with online deals from ecommerce websites, that we blindly fall into their trap and end up making purchases we do not need. Many times, we do regret our decision after a brief period of time as well. However, the main concern comes into the picture when we use plastic money like Credit Cards to purchase things that we do not need and later struggle to pay the dues. Always remember that a Credit Card is virtual money that you borrow from your banks and it does not belong to you. Making impulsive purchases that can affect your finances in the future is not a wise decision altogether.

Understand Your Strengths & Weaknesses: Every company needs a salesman, an accountant, an IT person, a marketing executive etc etc. No matter how much our company or business means to us, we are not in a position to fulfill all the roles that require different levels of skills and expertise. This is where our judgement of our strengths and weaknesses comes into the picture. In such situations, it is better to focus on our strength and do that task ourselves and for the areas that we are not good at,  we should hire individuals/teams who can do their best and give us the necessary outcome. This will result more often in a WIN-WIN situation for both ourselves and the company.

More Value, More Money: Whenever any product or an individual’s appreciation increases overtime, so does the value of that product or person. We all have skills that we are born with and we all have that intention to learn a specific skill that we are very much inclined to inorder to upgrade ourselves from the current level. The more we upgrade ourselves, learn more, experience more and expose ourselves to different things and different situations, the more does our value increase. It is always a good idea to invest in ourselves  before investing in anything else as that is something we can never buy out of money.

 Money Is A Tool: In this age of economy, many of us have made money our God, our inspiration, our goal, our destination though it can never be any of it. Money is just a tool that comes in use when we wish to fuel our dreams or ambitions. Money cannot be compared to any emotion or expression at any point in time. We are humans and no matter how much we earn or how much of a materialistic life we live, at the end of the day it is only love and compassion that can make us feel secure. Hence, use the tool wisely.

Passive Income Is More Valuable Than Earned Income: Passive income is not only more valuable than earned income, but also more secure than our earned income and can last for a longer period of time. Earning our monthly income is totally dependent on our job status, business outcome, market conditions etc, however passive income if invested at the right place, at the right time can last a lifetime. It is similar to planting a seed and reaping the benefits of the crop for years to come. Each one of us must make it a point to generate some sort of passive income (no matter how less the amount is at the beginning) to ensure a steady growth of income over a period of time. At some point of time we can have multiple sources of passive income to ensure we do not have to rely on just one source and we have our eggs in different baskets in case things go south.

Do Not Let Money Enslave You: As mentioned earlier, money is a tool, a resource, a sense of measurement in our lives that only makes our life more comfortable and enjoyable. However, we need to ensure that in no way are we so money minded that we become slaves to the currency. The day you realise that you no more value your health, yours or others time or emotions, others feelings but are only concerned about the net amount in your bank account, it is time to set your priorities right and come out of the money zone.

The Best Time To Start Is Right Now: There is no right or wrong time, good or bad time to start working on the money you wish to have to live a sustainable life. It all depends on you. The earlier you start the better. Hence, it is always wise to work on money goals at an early age, however no matter how late you start your journey, what is more important is to finish strong. Since there is no best time to start, might as well start right now and move ahead step by step. Someday you shall achieve your goals and be financially secure and independent.

So, these were some of the most basic money advice I wanted to share with all of you. I am sure there will be many more, some of which even I must not have come across. If any of you have tips or tricks of the money game, do leave us a comment and share it with us. Your comments, suggestions and opinions are important to us. Hope to see them coming.

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Written by Jaison Noronha
Idea Source : Personal Experiences & YouTube