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Money opposite of the Weather. Nobody talks about it, but everybody does something about it!

Do you agree?

I agree with what Rebecca Johnson has to say!

We all talk about the weather; can we do anything about it?

No, we can’t!

When it comes to Money each and every one is and will be doing something to manage the money they earn, but no one shares or talks about it!

While was surfing and going through stuff came across the quote by Rebecca Johnson and was instantly connected.

That connection laid the foundation for this article.

Money earning is simpler than money management. Hence said

“Balancing your money is the key to having enough.”

As per Wikipedia

Personal finance is the financial management which an individual or a family unit performs to budget, save, and spend monetary resources over time, taking into account various financial risks and future life events.

We all know the basic elements of anyone’s personal finances include

A personal budget,

Savings and investment planning,

Managing your income and

outgoings resourcefully as well

as applying for loans and finance

and various insurance policies

you may need over your lifespan,

Saving for Retirement.

These important but basics are followed by all of us! Still there are many who find it difficult to manage their finances. Right?

Many fell the financial stress.

There are many reasons a person can become financially stressed. A large amount of debt, a job loss or overtime reduction, medical bills, or simply being irresponsible with your spending could cause financial stress.

As per an article published in the Economic Times:

The debt of an average Indian, especially one who holds a credit card, is rising at an alarming rate. Recent RBI data shows credit card outstanding amount of Rs 42,100 crore at the end of May 2016 as against Rs 27,000 crore during the 2008 crisis period.

So what are the Major contributors to Financial Stress?

Increasing Debt

Today if we monitor properly it’s very easily clear, that the Debt levels are rising even faster than the income or assets one hold. Today it’s very easy for one to access debt in various forms like credit, mortgages and credit cards.

We no longer practice delayed gratification. Instead we practice delayed consequence.

We have become our worst enemies because we’ve started to spend even if it means spending money we don’t have.

As simple debts like Credit Card fuel consumerism and consumption.

Market Complexity

Nowadays it’s not about what we require. Consumers today do not purchase products out of need. As I did mention above we easily end up spending even the money we don’t have.

Why is that so?

As today there is a lot of information, products, choice to select from, and confusion in the market.

Like for example we women are all about fashion and labels, right?

Like it seems very difficult for us to not be instantaneously attracted by Footwear of one or more Brands, and we do end up buying them too.

And overspending is not only restricted to women.

There are as many reasons that people over spend like keeping up an image, immediate gratification, lifestyle maintenance, sense of power, prove self-worth and much more.

When there is supply demand arises

Short-term horizons

Time horizons can range from seconds, in the case of a day trader, all the way up to decades for a buy-and-hold investor.

There is no "right" time frame - it depends on the investor's individual objectives.

Every person needs to categorize his goals into short-term, medium-term and long-term. While determining the amount for each goal, they must factor in the impact of factors such as inflation.

Like the price of the car might increase in two years, as will that of their dream house in 10 years and those foreign holidays.

Else, he will not be able to save enough. Categorizing will tell him how much he will need and in how many years they will have to align their investment options with the timing of their goals.

After all, if you want to get what you want, and think of how you are actually going to pay for it later, when the bill arrives this will affect and disrupt your upcoming goals.

Most people just save whatever they can, or they save some arbitrary number driven by tax saving needs. Instead, they’ll have to start projecting future needs and projecting backwards from there to see how much we need to save.

The best thing to do is to be pessimistic in these calculations assume that needs will be higher and returns lower.

Money, the Conversation killer

Money is the top conversation killer.

Who’s teaching you about money?

Herein lays the root of the problem.

When asked I received responses like ‘We are a nation who simply do not want to discuss our money worries, and much of our personal lives are off limits, even with our nearest and dearest.'

People were likely to seek advice on are subjects like how to get fit, raise children and choose a place to live.

The starting point is a little knowledge but true success comes from action. It comes from taking control of your financial affairs and developing good financial habits.

We need to keep in mind

“Money, like emotions, is something you must control to keep your life on the right track.”

While our financial goals undergo changes as every person’s life evolves, budgeting, setting goals, investment, insurance and taxation form the cornerstones of his first financial plan. Their first financial plan will propel them into a saving habit and wealth creation, thus ensuring that financial goals are duly met.

As we say:

” The Cup of Knowledge is Filled One Drop at a Time”.

Just like small droplets fill the cup of knowledge. Same way few basic moves can yield you big dividends.

Saving bit by bit at a Time

Move towards yours goals step by step.

Focus on what is within your power: the sums you can sock away every week or month to get closer to what you're trying to achieve.

Have Self-Discipline

From where will you find money to accomplish your financial goals?

I mentioned self-discipline because it helps in the long run. When we try and discipline our expenses we put money towards achieving bigger goals.

Find the needs or want that can be cut and plan your savings out.

Put your financial life on autopilot as a form of "forced" saving. Meaning when you’re every pay cheque encash auto direct the amount in bits and pieces towards various savings plans or Fund Company like us to help you invest.

Allow auto debit for monthly payments of credit cards to avoid late payments.

Leave your credit cards at home and pay in cash. It's much easier to avoid temptation and racking up even more debt if you leave the credit cards at home.

"Don't spend what you don't have" should be your motto for a while when dealing with such situations.

Plan

Once you get along depending on the savings made make concrete, yet achievable, goals for yourself to get out achieve what you desire.

If you don't know where to start, talk to a financially savvy friend or financial adviser.

Getting a handle of managing your basic personal finance administration can return many financial rewards including providing you with more free time to pursue your interests and freed up money to further invest.

Who all agree?

What strategies have you followed to avoid financial stress?

Has anyone suffered through financial stress & what have you followed in order to overcome it?

Do you agree we avoid talking or discussing about Money with each other?

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