Moneywise Be Wise

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Moneywise Be Wise
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Smart investing is the key to financial
happiness. It helps you multiply your money.
Saving is not about saving extra money. It is
about planning your expenses in a manner that
lets you save enough money, no matter what you
earn, for a safe future. But handling money is
not very easy. So here are 11 tips on what you
must not do with your hard earned money.
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Do you rush to the ATM and withdraw money
regularly? Well, you cannot afford to be
careless about withdrawals. While a savings bank
account helps you meet your regular needs, it is
important not to deposit all your earnings in the
savings account. While you must keep a portion of
the salary in the savings account, make sure you
allocate enough money for regular expenses, as
well as additional expenses, that you may need to
meet unexpectedly. Excess money in savings
account will always also tempt you to spend more
money than you should ideally spend.
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Don't manage money without a good plan. A golden
rule in investing is to have a good financial
plan. Do not invest money only on the basis of
what your friends or relatives say. You must
identify your priorities and set realistic goals.
Calculate your monthly expenses and see how much
you can save every month. Make a list of things
you can and cannot avoid. Learn to strictly stick
to you plans.
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Don't invest all your money in the same plan. No
matter which investment plan you choose, you must
not invest all your money in just one plan or in
one bank. It is very important to diversify your
investment. Remember, interest rates and services
charges vary from one bank to the other. Before
you invest money in any scheme, call up banks,
financial service companies and make sure you get
the best deal.
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Don't set high savings targets. You must not go
overboard on savings. There is no point in saving
all your money and being sad about not having
enough for your needs If you have a family, you
must take care of their needs as well before you
start investing. Set a target accordingly. But
you should allocate a fixed amount every month.
The more you can save, the better
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Don't lose your focus on savings. You may have
invested your money across various investment
options. Don't think that your job is over. In
fact, you must keep a watch on interest rate
changes and market fluctuations If it is stocks
you have invested in, check out how the companies
are performing, read up, be alert. You have to be
proactive to the changes and be actively involved
to make your money grow
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Don't splurge more just because you got a hike.
Most people have a habit of spending more and
changing their lifestyle when they get a good
hike or bonus. There is no harm in enjoying and
have a good time. However, if you would like to
save money, you must invest the additional amount
to add to your savings . You must always think
about the long-term benefits
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Beware of credit cards. Easy availability of
credit cards has provided a major boost to
spending. A credit card gives you access to high
spending limits also it liberates you of the
worry about handling cash. But credit cards have
their downsides as well. For example, making the
"minimum payment due" could get you entangled in
a debt trap and force you to make interest
payments at obscenely high rates
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Spend in line with a budget. Remember the
longstanding method of making a budget and then
spending in line with the same. That is still the
right way to go about spending. Having a clearly
laid-out budget will help you prioritize your
spending. Only when the high priority needs have
been taken care of, should the balance funds be
used for other expenses
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Don't go for too many loans at the same time. It
is very easy to get a loan nowadays. Loans are
available just by sending an SMS. But beware of
easy loans! Your may want to own a car, a home or
some other luxury, but ideally you must not go
for too many loans at the same time. Buy things
one at a time so that you have enough money for
yourself and to save and you are not too
indebted.
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Don't join any scheme without verifying the
credentials. There have been several cases of
fraud, where innocent investors have been cheated
by crooks posing as smart investors or advisors.
They may lure you with all kinds of schemes of
getting higher returns at the shortest possible
time. Always cross-check facts and figures and
their credentials before you invest in any plan.
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Don't invest your money in risky plans. While it
is important not to keep stacking your money in a
savings account, it is not important not to
indulge in risky investment plans. You must start
saving with smaller amounts and try to save more
as you go along. To start with, you must seek
the advice of a good financial planner or choose
low-risk plans. Remember, slow and steady wins
the race!
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Don't forget the dates, plans. Make sure you
keep a diary of all the saving plans, their
maturity dates and remember to either reinvest
the money or go ahead with any plan that you have
in mind when the plan matures All the papers
must be safely kept in either a bank locker or
any safe place. You must also keep a photocopy of
all the important papers incase you lose the
original will be useful