adsense code

Saturday, 14 March 2020

Money saved is money earned


Q. How should I manage my expenses?

Expenses reduction should be a goal and everyone should try to achieve it in their own way.It is old saying "money saved is money earned" . Saving the money means reserving the earned money for the future use. Debt is to use money now that have to be earned somewhere in the future. Debt and alcohol have in common that if one enjoy to much of it or get addicted, one gets in big trouble one way or an other

“How do I start ?”


  • Take care of your physical and psychical health in the first place !! Keep your personal medical insurance ready to meet any un-fortunate event. i week hospitalization can wipe out your savings of many months. 

  • When your money arrives in your account, you FIRST save money (10%), SECOND reduce debt (10%) and THIRD spend money. Otherwise you will find out that there will be almost no money left to save.

  • Avoid advertising. What ever they told you, the only purpose of advertising is to seduce you to spend your money on their stuff that you do not really need. Buffett says "If you buy things you don't need, you will soon sell things you need.”"

  • Write down each and every expenses daily for 3 months and look at the unnecessary items. 80% of all problems are caused by 20% of reasons. So if you can find out those 20% reasons that make you spend 80% of all your money, it makes easier for you to reduce your expenses.

  • Go Offline if you can.When making payments become too easy and painless, we normally end up spending more. Make it difficult. Make it offline. Go to physical stores and buy. This may lead to lesser purchases or not buying things, that we do not need.At physical stores also, we can swipe our cards and buy things easily. This again may lead to buying things that were not in our shopping list. Try buying things using cash. This will help you to remain strictly within your budget.

  • Talk to your family i.e. spouse or grown-up children that why you want to save more and reduce your unnecessary expenses. Ask for their suggestions and active participation. It's a family goal after all. Without their support, you are unlikely to achieve it on your own.

Hope this will help.......

3 comments:

Real estate investments

 In India, our old people have only two options for investment. These are Real State (house or Plot) and Gold. We will talk about gold some ...