Tag: money

Categories
Kharcha paani

Be your best money manager for 2024

We’ve got easy personal finance tips and some budget app tips to end year 2024 better than it started.

by Mr Paisa Vasool

At the beginning of this year, you had the highest hopes of yourself. You were going to get that promotion this year with sheer hard work – or change jobs – go on an international trip, invest in a good bunch of stocks, and manage your money much better than you normally do. Indeed, you may even have achieved the other goals already. But can you say you’ve been the best money manager for your money?

There’s still time for some course correction. Here’s what I would do if I wanted to become my best money manager for 2024:

#1 Do not buy bank-recommended financial products. If you already have, try and get out of them by either redeeming them or reducing their term by converting into a better product.

Sure, your relationship manager at your bank is your best friend, and they recommended ULIP and guaranteed returns plans which were supposed to be the best thing since sliced bread. But, they really are not. Most bank-recommended financial products are pitched with the sole purpose of making employee targets for the year. They might not necessarily give you the high returns you expect.

Redeem the policy or product if you can. You might not make much money with this approach, but at least you can get your invested sum back. If not able to redeem, check if it can be converted to another plan with better returns. If nothing is possible, you will have to sit with the product till it matures.

#2 Pay yourself first every month.

High unemployment and upward-creeping inflation notwithstanding, it is not impossible to save money every month. If you’ve been unable to save much money this year after juggling all your expenses, here’s what you’re probably doing wrong – you’re trying to save money after you’ve handled expenses. Flip the system on its head. Set aside savings – whether by debiting X amount from your salary account to your savings account by debit, or by auto-debit in a monthly scheme (after talking to your accountant) – the moment you get paid. This way, you will save money while it is still in your hands, instead of trying to save at the end of the month. Personally, I deposit Rs 5,000 in a PPF account and put away Rs 10,000 in a savings scheme in the first week of every month.

Go online to find and compare the best budget apps that can help you track your savings and keep you motivated to stay the course every month.

#3 Invest in a bunch of high performing stocks.

Equity schemes show faster growth than debt funds, but they also have higher risk – so you should stay invested longer to even out the risk. Myriad stock options and funds in the market can help you with your short- and long-term goals, your risk appetite, your vision for your future and your current holdings. Sit down with a good money manager to take an impartial look at your finances today, and do necessary course correction every month till December 2024 to see some magic unfold. Understand the tax implications of each instrument before you invest.

You can log on to investment apps or budget apps that aggregate the best stocks for the week and put in your money as per their recommendation.

#4) Curb all unnecessary expenses – NOW.

I don’t mean you should never step out for a meal or stamp out the desire to shop online once in a while. But are you spending on things you don’t need, as opposed to things you might? Here’s how you divide your expense chart, in 3 categories:

Want Need Love

Of these, save towards ‘Love’, which is most likely a splurge buy, and spend on ‘Need’. You might not really need or love the products that fall under ‘Want’. Take your pick accordingly.

Do you have any smart money manager tips to share? Let us know in the comments below.

(Picture courtesy https://www.thebalancemoney.com/save-money-every-day-453945)

Categories
Kharcha paani

Are you making these 5 money mistakes?

Good salary, but never have enough of money on hand? Chances are, you’re making one of five common money mistakes.
Team Metrognome | editor@themetrognome.in

Money sure matters to all of us, but are you one of those people that never seem to have enough of it? On the face of it, you’re being quite fiscally responsible – you don’t go out partying every night, nor do you shop every so often. Then how is it that you never have enough money for emergencies? More to the point, how is it that so many others do?

It’s possible that you’re making one (or more) of these five common money mistakes:

1 Spending everything. Is this a recurring pattern in your life – money comes, money gets spent? If you are spending every last Rupee that you make, you will have nothing left over at the end of the month. If you find yourself regularly borrowing small sums of money in the last week of every month, it means that either your income is insufficient for your needs, or that you are spending more than you should.

2 Being too cautious. On the other hand, you might be spending very little money, even on essentials. Go on, live a little. We’re not suggesting that you splurge your cash at every opportunity, but being too thrifty is not ideal either. It’s important to strike a balance between where money needs to be spent, and where an expense can be avoided.

3 Not saving every month. There’s only one way to have a large savings fund – by saving money every month. As tough as it seems, it’s not impossible to do. Every month, set aside your savings first and then allocate monies for bills, travel, groceries, children’s needs, etc. Most people meet their expenses first and then try to save money – which rarely works. Just a sum of Rs 3,000 to Rs 5,000 set aside every month can rack up a large savings fund over time.

4 Not creating a retirement fund. We’re all working and quite young right now, but the time to plan for retirement is when you’re still working and young. Many people put off planning for retirement till they are past their 50s, by which time they cut short their own planning time. Apart from creating a savings retirement fund, you can also invest in pension plans, or PPF (Public Provident Fund) or a suitable market-linked investment such as ULIPs or ELSS.

5 Getting into debt. It starts with small sums of money borrowed from friends or relatives, and then develops into a regular habit. Borrowing money is the worst money mistake – it leads to debt and a bad credit history (if you have institutional loans such as personal or credit card loans. Debt eats into your income and leaves you floundering when you have an emergency expense. If you have private and institutional loans, it is better to close them one by one to clear up your credit history. And remember, do not borrow loans to repay loans!

Did you find this article helpful? Do you have a money tip to share? Tell us in the comments section below.

(Picture courtesy https://smartmortgageadvice.files.wordpress.com/2007/08/walletistock.jpg)

Categories
Learn

Kids talking money

Jigisha Shah’s pint-sized protégés invest in gold, understand the share market, and know how to make the best money choices. And that’s not all.
by Beena Parmar | beena@themetrognome.in

Does your child save his pocket money? Does he keep an eye on silver and gold prices? Have you found him scanning the financial pages of your daily newspaper?

Do you think children and money don’t mix? You obviously haven’t met those trained by Jigisha Shah.

Robert Kiyosaki, financial guru and author of Rich Dad Poor Dad, which continues to rock the financial world even today, teaches people to become millionaires. Jigisha Shah 37, a Kandivali-based educationist, read Kiyosaki’s financial teachings comprehensively while doing her CA internship. “I realised that the subject of financial literacy has been widely ignored in our society. Most people struggle to take quick and correct financial decisions due to financial illiteracy. As a result, we see economic and social challenges in the country,” she states.

Following Kiyosaki’s teachings, firm in her belief that imparting financial education to children at an early age builds a strong foundation for their future, Jigisha started her FLP (Financial Planning Programme) in 2006, to help bring up generations wise in real life education. “My goal is to train people, especially children, with true knowledge and power to take control of their financial future to achieve their goals and dreams,” she informs.

But why deal with children, not adults? There’s an interesting back story. Jigisha initially started taking money seminars for adults. These produced excellent results, as some of her participants effectively saved thousands of rupees. However, during a seminar for women, a mother shared her concern about her son not valuing money and over-spending, and Jigisha was hit by the urgency to take programmes for kids.

“This mother’s concern was not an isolated case, but a reflection of slow and steady change in the behaviour patterns among children in double income families. In cities, where both parents are working, they are unable to give sufficient time to children. They usually compensate this feeling of guilt by fulfilling the material demands of their children. As a result, their children do not learn to value money,” Jigisha explains.

In just three months, she created a detailed programme for kids. Her biggest challenge was to make money interesting for kids. Hence, she created the Money Education Plan, which was realistic and fun to learn. The programme immediately became popular with children and Jigisha took it forward.

One of the modules is ‘Build money IQ’ which enhances children’s financial IQ. Another one is ‘Smart Kids Score’, which she has planned keeping numeric ability, relative analysis, value demonstration and accountability of money in mind.

So far, Jigisha has educated more than 600 students through seminars in public and private schools, and summer camps. “These children are now aware about money and are empowered to take conscious money decisions from their formative years,” she claims. Initially it was challenging to make parents understand the need for such a programme for kids. But she now feels that things have changed.

“Our country is being influenced by western culture, where loans and borrowing are fast becoming a part of life. Now more and more disposable income in the hands of the younger population is becoming a matter of concern. Educated parents with young kids have begun to understand the situation. They are getting into proactive thinking mode and so can relate to my programme,” she explains.

The kids are all right

While Ajit Mhatre, a 13-year-old student admits that he learnt about goal-setting, pyramid of life, saving and investments, how money travels and about banks, coins and currencies, Jigisha was amazed by the learning of 12-year-old Kunal, who participated in her workshop two years ago. “Last month, he came to me and said that he had collected Rs 6,000 in two years, and bought silver to invest the saved money. I was happy at his thoughtfulness about his first ever investment at the age of 10,” she beams.

But she was even more stunned when Kunal said, “I bought silver now, and when silver prices go up, I will convert it into gold, because gold will give me lots of money in the future.”

Parents are thrilled with Jigisha’s programme. “She needs just five minutes with your child, and she can exactly tell you which area your child needs support in. Her workshop has made my daughter Pari so aware about money, that when asked what she learned from Jigisha aunty, she answers in Marwari, our mother tongue, ‘Paisa waste ni karma’ (don’t waste money),” says Anita Bafna, an advocate and Pari’s mother.

Jigisha has two sons, Vatsal (10) and Jayaditya (9). Both have participated in her seminars, are money smart and have made different money investment choices. While Vatsal  has bought 100 grams of silver, Jayaditya has been investing his money in bank fixed deposits for the last three years.

Over the years, Jigisha has noticed some gender-specific behaviours among her participants. “Girls wish to save for buying things that give them emotional satisfaction, like jewelry, clothes and gifts. Boys mostly opt for sports gear and electronic gadgets,” she smiles.

Schools benefit, too

Jigisha has taken her FLP to two BMC schools inGrant Road, where almost 300 children participated. “I got a great response from the children. They were eager to learn. I emphasised on saving early and its benefits, and everyone in the programme promised to start saving,” she shares.

Iravati Mane (name changed), principal ofManavMandirSchool, Grant Road, was delighted with the FLP. “If I had the opportunity to learn from such a programme in my childhood, my life today would have been more fulfilling,” she says. But though Jigisha would like to continue such programmes in BMC schools, the lack of coordination between schools and students is keeping her from implementing her programme in a bigger way.

“It is necessary that we consciously impart money education to kids at an early age. Parents should not hesitate sharing financial information with their children,” she concludes.

 

 

 

 

 

Exit mobile version