Corporate offices keep meticulous accounting system and budgetary controls for sustaining in the competitive commercial world. But individuals usually do not plan properly.
As all activities depend on the monetary base one has, it is not improper to have a thorough plan of finances to lead a successful life. You cannot replace money with anything else. Only Money has to be used where money is to be paid. Because of the present day trend financial discipline pays more rewards than any other. So remember that money saved is equivalent to money earned.
It is necessary to working class to spend at least 15 minutes to maintain an account at the end of the day. You need not be a trained account to jot down your expenses of the day. After a month you can review the total expenses under different heads. You can categorize them in to two. Fixed expenses and floating. One cannot change the fixed expenses like rent and other monthly commitments. But the floating expenses can be minimized so that the amount can be saved for future use.
After starting maintenance of personal accounting for 3 to 4 months one can surely come to an understanding of where to save expenses. The object should be that the savings should not be less than 10% of the earnings. Keeping the inflation in mind and increasing expenses as the family grows a minimum savings of 10% will work as a cushion at the time of emergencies.
What to do with the money after saving?
If you just keep the money in the bank it will be of no use. The saved money also can grow with wise investments. Otherwise, the value of the money will shrink due to inflation and raising prices. You can opt for the best plan available in your bank to get maximum interest rate. Invest in Fixed Deposit account for the minimum period that gives maximum interest. NSCs and Bonds are safe bet if you don’t have thorough knowledge of shares and other types of investments. Do not get lured by the attract offers of returns promised by the private finance houses. A divorcee working woman says that she avoids friends, relatives and neighbors who drain her money.
To address unforeseen expenses:
Whatever meticulous one may be there can be some unforeseen financial crisis. There can be a recession in the work or there can be illness for a long period. If the savings are spent on the occasions then the financial position will again come to square one. There are insurance companies to come to the rescue. Choose a suitable insurance coverage for contingencies and medical reimbursements.
As money is the basic commodity that buys everything, a financial discipline makes a man or woman to lead a hassle free life.
-SriJa
