Money, Money, Money, Management
The moment we hear words like investment, portfolio and management many of us tend to think that this jargon is meant for the Wall Street kind of guys only. Money management is often perceived as a boring and tedious task which concerns accountants and investment bankers more than us. But managing your own money is intensely connected to your own freedom in life.
The day you look at money matters from this point of view, it all becomes fun! Let us look at 5 simple money management strategies here: Early retirement v/s late retirement: If you plan your finances with the target of retiring early, you will be more conscious about spending and saving. This can be highly motivating and you will definitely save faster and more in a year as compared to going along to a normal retirement age. Small income v/s Large income: A small income worker who saves diligently will end up saving more than a high-income worker who spends wildly. So don‟t fret that you aren‟t earning enough.
Budget your expenses shrewdly, without a compromise on the quality of your life. Smart worker v/s simple worker: A smart, intelligent employee will often be overconfident in his ability to go on drawing high salaries indefinitely, while a simpler worker knows his limitations and works within them. The „intelligent‟ investor often gets entangled in complicated schemes that don‟t always yield gold, but the simple man stays on the straight and narrow path to sure gains. Credit v/s Cash: Ensure that you pay your credit card bills in time. Falling into a chronic debt trap is the worst pitfall for your money management. For that matter pay all your bills in time, be they utility or grocery bills. Fines for delay and hidden charges will pop up and eat away at your savings.
Ant v/s Grasshopper : Setting up a careful budget and sticking to it can pay rich dividends. Also ensure that an emergency fund is gradually built up to tackle the lemons that life may throw at you. Frugal living does not mean stingy, miserable living. Budget is enough fun in your life too. Yesterday‟s extravagant living is passé. The new money management is fueled by “green” attitudes and a responsible, enriched lifestyle.