It takes a lot to be firm and say to yourself that you will lead a life that is free from the bonds of MONEY.If you listened to my mother and taken her advice,you would be a millionaire by now i.e,if you started saving by 23 and now 30 year old millionaire would have been me.As always i did not take her advice and clearly in no position to advice on MONEY matter.However,it is true that as you grow old,you do become wiser and clear and smart in terms of life,which includes money and economy.
Here are a few points for myself,as I start a new life as a wife soon and also to who ever reads it no matter what age you are at.Life becomes simple to live.Agree that money plays an important part in all our lives.It is not just a necessity,but a major need.This is what I intend to do over the next 2 years.
1.Kill the debt – no matter how much you want to save,it will all go nowhere if you have a debt.So first calculate who much you owe or how much you spend on your debts.We all love that big fat bag or the i love the sofa set in home town.However i am going to wait till i clear my debts to buy any new furniture in the house or even buy a new perfume.If your debt is for a bank loan(home,car,personal) and it is for 1 or 2 years,please forgo the dream sofa.There will be better sofas in market soon and you will love them more than the present one.
Mantra – I will not buy anything that I not necessary till I clear all my debts.
2.Save at least 1000 per month – You have a Bank account where the salary goes right?Now take 1000 out on the 2nd of every month.Put in in another bank,like a recurring deposit.That way in a year you will have enough money.
This is how it works – if you deposit Rs.1000 at the rate of 7% interest for 24 months,you will get back an amount of Rs.25,681.So you have invested.
I believe that recurring is a way for you to just close your eyes and let the bank take the money.At the end of 2 years you will have some saving and you can buy yourself what ever you want or put it bank in the bank.
Mantra – I will save Rs.1000 per month for the next 2 years or more if I can(even if it less then 1000,save,save, save)
3.Cut the Card – If you know how to use a CC then use it otherwise just cut it,Why do you want to pay someone else for the things that you have purchased.(Listen to yourself laugh now).But,trust me and just cut the card.Or make sure you never swipe for more than Rs.1000 per month and make sure you pay that back at the beginning of the month.
Mantra – I will not use the card.period.
4.Expense Sheet – As a kid I used to watch my mothers friend write down every expense at the end of the day.I thought she was a miser,It is just recently, that I realised ,she is in a much better position that anyone and never been a miser.She was the first to buy me the best gifts and chocolates and also fancy her every whim and need.So start a budget sheet and write down what you spend every day.DO IT NOW.
5.It is very easy to read all this and say “YAY I Am GOING TO SAVE”.However,make sure you do it at least for 6 months.See if it worked for you.Money is not everything.but when did it hurt to save for a rainy day or even to give yourself that gift or to see a smile when you take you family out for a vacation.please save every month and trust me you will be at peace.
Much love from the “To BE Wife and HOMEMAKER/BAKER/WRITER/CREATIVE GENIUS” 😛