I am no economist nor a financial advisor but then again,one doesn’t have to be any of those to manage their own finance.It may sound very clichéd to talk about self finance management.Believe it or not,most of the people,mostly youngsters and new earners,find it extremely difficult to plan their expenditure for the month let alone trying to save money or think of investments and money plans.Most parents never let their kids know about family financial status thinking about more important things their kids have to deal with at their age.By the time they grow up and start earning for themselves they would have never cared where the money came from and suddenly when they are the source of income now they have no clue how to go about it.Sometimes they realize the need to organize their finance early enough and sometimes the financial haywire continues.I have so many friends who in-spite of staying with their parents run out of cash by the end of the month;The Reason – mismanagement of money.For financial fledglings who have no calculation of their own expenditure,no amount of money is ever enough.You give them ten thousand or a lakh they would still be in the same state. Managing your own money is not very difficult if one understands their priorities and knows their capacity to spend.Today,happening parties,malls and exquisite eat outs all draw people calling for unplanned expenses.People have money today and they like to spend it as they wish, specially the proud neophytes who think spending recklessly is their financial independence.
We hardly see anyone sitting at home spending time with family,trying out new recipes to cook or enjoy gardening anymore.Majority of people today spend most of their weekends away from home,pay up to get smallest of the things done; like fixing a tap, watering plants in their garden or washing their own car at least when they can.Some think those chores are below their dignity, some think they earn enough to afford a servant for that and some are just too lazy.After long hours in office and stressful work everyone feels a need to repose.They catch up with friends and have some fun in order to relax and to do so all they get is just the weekend and during that process one doesn’t pay much attention to their pockets – resulting in ‘Over Expenditure’ than necessary.Money management doesn’t require one to be parsimonious, all it takes is for one to plan out their expenditure.
When you get your salary you can either blow up the whole amount within a month or plan your expenses in such a way that you spend about 3/4th of it and save the rest for your rainy day.Here are a few very simple tips which could help people manage their money. To begin with,you can write down your usual weekday expenses so that you get a fair idea of how much you spend on daily basis and similarly pen down the usual things you do over the weekends and how much they cost you.Try to limit yourself on weekends to a certain amount which you think would suit you,including all the clubbing and shopping and eat outs you want for yourselves. You need not give up on anything,maybe just reduce the frequency of doing something or finding an alternative less expensive place for it.For example if your budget for each weekend is set at 2k and that would include an outing on a Saturday night, shopping/movie and lunch with friends on Sunday, you would have to limit your shopping depending on how much you would have spent for your previous night outing or you would have to find an inexpensive alternative for your lunch if your shopping cost you more than alloted amount.The basic idea here is to stick to the fixed amount and not let yourself spend more than that. Planning helps one cut out on unnecessary expenditure and hence letting them save up (even if it is a small amount). As the saying goes “A penny saved is a penny earned! “
Whatever ones’ earning is, if they have no control over their expenditure nor have any safety money for emergency they would face financial crisis one day or the other.Then debts follow which would require you to cut down somewhere sometime in order to clear it,if not it would go on building up, adding on to your mental stress.In today’s expensive world, be it men or women,it is very important that one has enough money to survive independently.It is no longer appreciated being financially dependent on anyone (including your own parents) after a certain age.Financial independence not only induces a sense of pride in oneself but also earns one the status in the society.Money might not be the only necessity to live but sadly it is the only means to survive in this world.