As most of the precious time and energy of ours is spent in earning more money, learning the art to spend money becomes the notable point. To become financially successful, you must have an awareness of judicious saving and prudent investing. At the same time, if someone is proficient in handling money, finds it too difficult to create a promising future for them and their family members. The importance of money is not just limited to earning, but it also covers the concepts that how you spend and invest it.
#Wealth creation to fulfil future needs
Money is a key role player and a major driving force in our life. At one side it acts as a tool to create wealth for future generations, on the other hand, it acts as a transaction instrument to fulfil your present and future needs.
#Financial planning
Financial planning encourages individuals to accomplish their goals by the excellent management of money and finances. The knowledge of using money wisely is the initial step towards bigger goals.
Expense management is all about receiving the right value for every rupee spent, and right decisions on the payment mode–Either credit/debit card, cheque, cash or EMIs.
#Decide the budget for all times
Deciding a family budge that considers regular spends, and one-time, even discretionary expenses are the smartest way to save enough money for life’s goals.
#Control over finances
A person having a predetermined budget has control over his finances. Thus he is in a good position to have control over cash flow, easily pay short-term dues, and make realistic provisions for other goals. There can be a vast difference between the budget of one person with another with a similar cash flow. It becomes possible as it has a reflection in our habits and aspirations.
It is the nicest way to prioritise the spending categories depending upon past experience and properly defined financial goals. To be able to find the best possible solution, one must seek for a Certified Financial Planner or a CFP practitioner.
#Division of Expenditure
#Regular and Non-Discretionary expenditure
Eatables, phone, electricity, grocery, domestic help, entertainment etc., are regular expenses. It is easy to put a broad limit on this expenditure to stop them from getting out of control. You can avail handsome discounts on them by making bulk purchases with friends and relatives.
#Irregular and Discretionary expenditure
Consumer durables, furniture, gold or going out for holidays are some of the examples of irregular expenditure. Everyone must make intelligent plans before investing in these items as they cost a lot. For example, if you are going to buy furniture, take your time and use your intelligence in deciding the price value analysis and quality of the item from where you buy.
#Avail the best deal
One should not hesitate in negotiating and asking for complimentary products or services. It is your right to ask for a discount on the MRP printed on products, or a plan offered by a service provider.
Hope, taking care of above mentioned eight points you will be able to best manage your savings, money and investments.
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