Finance is a term for matters regarding the management, creation, and study of money and investments. This blog is A JOURNEY TO FINANCIAL FREEDOM and this is very useful for those, who are in trouble due to mismanagement of money. As you know Finance is a term for matters regarding the management, creation, and study of money and investments. Read In Hindi
What is Finance?
Finance is the field that deals with the management of money, investments, and financial resources. It encompasses various activities such as banking, investing, budgeting, lending, and financial planning.
Financial Planning
Are You unable to save in this era of inflation?
Whatever people say to you about investment, you will answer that you earn little money to manage the basic needs of a family. you can find many people in your circle who try to convince you about the different benefits of savings and you will find yourself astonished when you see a guy next to your home earning less than you but able to purchase a new bike.
Whenever anyone asks you to save money, sometimes you become motivated to save but after a lot of calculation, you find yourself unable to save. Does it mean finance is not your business? No, you do not worry.
How to understand Finance?
You have to understand finance and will help you understand finance as a whole in an easy way. If you want to live a life without the stress of fulfilling the needs of you and your family you have to manage your earnings and must have to save. So what can you do? First of all, you have to understand that the needs of the family will be bigger as your family will grow with time.
So without saving you will find yourself in a lot of trouble and this stress will make you ill very ill. So what to do?
Rule of Saving?
The first rule is to save first. Where to save is another thing but first of all, you have to save.
In general, we think that we will save what will be left after spending the whole month, and what do we get? In the last week of the month, we find ourselves empty handed and we have to take a loan from our nears and dears.
Management of Salary or Income?
When we get money from our sources i.e. salary or business, we pay our loan first. For example, let’s imagine you are earning 12000 and you think that you will save after spending the whole month but in the last week of the month, you have to take a loan of one or two thousand for the needs of your home. Now you will have only 10000 as your salary after paying your loan. So basically you are making a money crisis from the start of the month.
Now what I am going to say, is not very hard to apply but needs a little self-control. You have to think that you are earning less. For example, if you earn 10000 instead of 12000, you will manage your whole month with the same difficulty.
Once you become a master of this method, you will find yourself in a better position. You will get the peace of mind after saving a little amount and this peace make you happy and if you are happy in your life, your nears and dears will be happy when they see you happy.
You have to remember that you have to save 15 to 20% only otherwise you will be in trouble again. Do not try to save more than 20% of your salary otherwise, you will find yourself stuck in mid of the month and as a result, you will not be able to save a single penny.
Closing Your Loans
The second rule is what you save, allot 50% for your monthly needs. Now why am I saying this? Actually, this will help you get rid of getting the loan. I want to say that you have to take a loan at month’s end, so you have to get a loan. Now instead of taking a loan, you can use 50% of what you save. As a result, you can save an amount without any hustle. Now this will make you far from the tension of a loan. I think, now you can connect to what I want to make you understand. If you do this you will at least save some money. But everything wants motivation.
You can tell me what is the benefit of saving such a little money. First of all, I will say that now you are saving money instead of taking loans.
And don’t worry I will show how you can fulfill all your dreams in just this type of savings. Here I am saying to fulfill your actual dreams, not imaginary dreams.
So I am very happy to start a new journey in your life with me.
So we will meet the next day. Thanks for giving me your valuable time.
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