The following tips are from my own personal experience and may not be suitable for everyone. But still I am sharing this so that people who are in their early years of their careers can benefit.
1. Don't save what remains after your expenses. But first plan your savings and then plan your expenses according to what is remaining.
2. Three things you MUST have: Health insurance that covers the entire family, life insurance for self and non-earning members (other earning members should take it on their own), cash in form of fixed deposits/savings account (this should be at least 30 to 50% of your annual income)
3. Never lend money for interest. Getting interest on money from banks and other such legal means in not "sin". But lending money for interest may cause innumerable problems. Also don't get enticed by pyramid schemes, wealth accumulation schemes, chit funds etc. They are risky and probability is high that you may lose money.
4. If you want to help a friend or relative in need, you can gift/lend money without interest. But make sure that you are not giving more than 10% (in terms of gift) or 20% (in terms of interest free lending) of your monthly income. You should not worry if the money doesn't come back in case of lending. That is why an upper limit is always advisable.
5. Don't invest too much in one sort of investments. Some people buy too much land, some stack gold coins and others blindly invest on shares. Take a balanced approach.
6. Never buy car/bike on loan. In early years of your job, you should try to cut expenses like this so that you can climb out of your educational loan and other such financial problems easily.
7. Never buy apartments on loan (or even with down payment). Instead wait for sometime, buy a land in your native or some nearby village, after 10 to 15 years of earning, build a good house with minimal or no loan. This will reduce your dependence on market forces and stress of loan pursuing you rest of the life.
8. Don't have any sort of addiction. Addictions apart from having detrimental effect on health also have same effect on your earnings. Spending 10,000 on a weekend booze is not acceptable even for a person who earns 1,00,000 a month!
9. It is OK to be religious/spiritual. But watch out! God doesn't need your money. Especially in terms of rituals/tithing/donation etc. If you are compelled to help others for love of God, then do it in person yourself. Why give money to others?
10. Never go for EMIs (especially for smartphones, gadgets or for anything other than building a house, education and medical care. If you can't afford anything through down payment, then the time has not yet come for you to own it!
Finally, never try to cheat others in money matters. It may be one or two rupees in that corner shop. Or it may be a minor error in your income tax calculation. Never overlook these. Be watchful and keep your accounts clean. By this, you will also have the habit of checking your incoming account keenly. It will help you to check unnoticed loss of money.
If you have more points, please add them in comments! Thanks for reading!
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| Image Credit: Wikimedia |
2. Three things you MUST have: Health insurance that covers the entire family, life insurance for self and non-earning members (other earning members should take it on their own), cash in form of fixed deposits/savings account (this should be at least 30 to 50% of your annual income)
3. Never lend money for interest. Getting interest on money from banks and other such legal means in not "sin". But lending money for interest may cause innumerable problems. Also don't get enticed by pyramid schemes, wealth accumulation schemes, chit funds etc. They are risky and probability is high that you may lose money.
4. If you want to help a friend or relative in need, you can gift/lend money without interest. But make sure that you are not giving more than 10% (in terms of gift) or 20% (in terms of interest free lending) of your monthly income. You should not worry if the money doesn't come back in case of lending. That is why an upper limit is always advisable.
5. Don't invest too much in one sort of investments. Some people buy too much land, some stack gold coins and others blindly invest on shares. Take a balanced approach.
6. Never buy car/bike on loan. In early years of your job, you should try to cut expenses like this so that you can climb out of your educational loan and other such financial problems easily.
7. Never buy apartments on loan (or even with down payment). Instead wait for sometime, buy a land in your native or some nearby village, after 10 to 15 years of earning, build a good house with minimal or no loan. This will reduce your dependence on market forces and stress of loan pursuing you rest of the life.
8. Don't have any sort of addiction. Addictions apart from having detrimental effect on health also have same effect on your earnings. Spending 10,000 on a weekend booze is not acceptable even for a person who earns 1,00,000 a month!
9. It is OK to be religious/spiritual. But watch out! God doesn't need your money. Especially in terms of rituals/tithing/donation etc. If you are compelled to help others for love of God, then do it in person yourself. Why give money to others?
10. Never go for EMIs (especially for smartphones, gadgets or for anything other than building a house, education and medical care. If you can't afford anything through down payment, then the time has not yet come for you to own it!
Finally, never try to cheat others in money matters. It may be one or two rupees in that corner shop. Or it may be a minor error in your income tax calculation. Never overlook these. Be watchful and keep your accounts clean. By this, you will also have the habit of checking your incoming account keenly. It will help you to check unnoticed loss of money.
If you have more points, please add them in comments! Thanks for reading!
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