By now every friend of mine knows that I am working in a
1. Become your own CFO
You cannot take control of things which you don’t know. To take control of your money you need to first check where you are spending it. Track down what and where you are expensing your money. Nobody cares about your
2. Go on a diet
Please don’t close the window. I am not suggesting you to stop eating. I am asking you to track down that one expense (unimportant expense) which is not allowing you to achieve your goals. It’s a fable in
Example: Simple expense to choose is buying online clothes. If you have an urge or habit of buying clothes (let’s say T-shirts/shirts costing you for Rs. 1000/-) every month. Then you can calculate expenses for whole year. i.e. Rs.12000/- I am sure you will survive without this expense. Try to invest the amount for yourself.
3. Be selfish
Think about yourself first and then help others. This mostly happens with ladies (be it mommies or sisters), they put their family first and then are unable to help themselves. Ladies you should understand once, you invest for yourself and then you get flexibility of helping others.
4. Automate your money
I am not asking you to use your debit/credit cards for shopping. I am suggesting instead of paying manually for your investment, just automate the investment. Your money is straight away taken from your paycheck for your retirement investment account or mutual funds investment account. This makes you worry less, save time & money and stop you from expensing money. Automation helps you save more, keep priorities intact taking emotions out of it.
5. Add another income stream
Don’t rely on single source of income. There are numerous sources wherein you can apply for second income. Make 2015 more lucrative for yourself by choosing second income source.
6. Get a library card
Don’t just let things go off. If you don’t understand things related to
7. Make your investments boring
I am not asking to delay your investment. I am asking to invest and forget about it. When people invest money they are kind of excited about returns on that time! They start monitoring investments every day and buy and sell according to market. This might lead you nowhere. To make money, you need to take out your excitement and stress. This reminded me about the statement made by Paul Samuelson -“Investing should be more like watching paint dry or watching grass grows. If you want excitement, take $800 and go to Las Vegas.”
8. Track your progress
Everything matters in
9. Cut out 10%
Try to reduce your expenses by 10%. List down your expenses and see which can be stopped or reduced. Invest these few thousands or hundreds in yourself or in your future via paying off your debts, investing for your planned business, etc. Try to maximize doing this for better savings. This idea works each time.
10. Cut your 2015 taxes
Word Tax makes us run. Before it gets deducted from your paycheck get done some tax saving investments. You can start saving your taxes for financial year 2015-16 as market is good for investments.
11. Reduce your goals
When most people don’t create goals (You can use moneyfrog.in for your life goal tracking), but it’s an extreme when people create too many goals. Don’t just dump your goals. Successful people keep their goals simple and create single challenge in front of them.
12. Spend smartly at the holidays
This year with many long weekends can tempt you to go on mini vacations. While planning your vacation don’t forget to plan the expenses too. Try to compare different travelling and staying packages at different places which are easily available online can help you plan your holidays better and will save more.