Asked by
sunny likeu
in
Self Development
at
8:58 AM on February 21, 2008
vinoo's Answer
Whatever one is earning, it is important to maintain a daily book of accounts/spending religiously. Make a monthly budget and include all fixed expenses like, rent, charges such as electricity, phone, cable, water, maids salary,etc; also keep track of amounts spent on provisions, toiletries, other household requirements, entertainment, eating out (hotels etc;). Keep track and provide for festivals and personal occasions like birthday, anniversaries, etc;. Make provisions for statutory requirements such as annual school/college fees, house taxes, insurance premiums for self and vehicles, etc;. It is important to get into the saving habit and ensure that certain minimum amount is saved regularly without fail. There are many instruments to help one to save money and earn interest, like PPF, Post office monthly saving scheme, fixed deposits, investment in mutual funds, etc;. The art of keeping track of how money is being spent through proper accounting and controlling your hard earned money to curb unnecessary expenses, and essentially, regular saving and investment habits will ensure better chances for a more meaningful life at later stages.
Answered at
8:05 PM on February 21, 2008
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