Skip to main content

How to build good relationship with money

 

We live in the real world, where life is not based on songs, but of dreams and goals that you want to fulfill.

A client of mine, when came to me for the first time, was bewildered regarding his financial situation. He knew that he wanted to realise and complete his goals and dreams, but was so sure that he did not have the right amount of resources to do so.

The first few minutes into the meeting he kept talking about how if he had a little more money, he would have been able to fulfil them sooner. After listening to him intently, I realised that it was not that he did not have enough resources to fulfil his dreams and goals, it was just he did not have the right relationship with them.

This is a common situation that is persistent in every household. At least one member in the family is unaware how to handle and maintain their finances.

Though not a very common practice, not many people know how to maintain a good long lasting relationship with their capital, in such a way that not only serves them in the present but also will help them accomplish their dreams and goals, without a glitch.

Altering your spending habits is the answer that you are looking for.


Analyse how you spend your money: Spending patterns often depends on one's moods or situations or events. Look at your credit card bills and analyse the same with the corresponding date and you will find out a pattern as to how you spend your money.
Spend but carefully: No financial planner would ever tell you not spend any money.
There are the basic needs that have to be fulfilled. Instead of splurging your resources on unnecessary items that you will use only once, find a non-expensive alternative that will not only fulfill that need but also make sure that you have not created a dent in your pockets. Reinforcing is the key: Psychologists often speak about negative and positive reinforcements in life that would help alter behavior of an individual. Try the same when it comes to your finances.

I started this project with a client who would spend money without a second thought. This was hampering one of the goals she wanted to achieve. To make her understand the importance of this, we set up a little project.

Every time she spent large amounts of resources on frivolous demands, her spouse would negatively reinforce her and would make her invest double the amount she spent, for a fixed period of time.

This enabled her to be careful as to where she spent her money, as she realised that there was a higher amount of resources going out then coming back in.

Look for alternative plans if you feel that your current plan is eating up too much into your savings. Your financial planner can help you get a simpler plan that will help you to invest less in a smaller amount of time, so that you don't have to face a financial crunch in your present.

Ignorance is not bliss when it comes to your debt situation: Try not to pile up your old bills and settle them as soon as possible. One folly that most people do is they collect and pay all their bills together.

This, at times, eats up a larger portion of your resources, as you may miss your bill date and end up paying more than the required amount.


Look for bargains that can help you financially: A well to do client of mine used to consider this to be a thrifty activity and never attended sales. I explained to him that bargains not helps you finds the best deals but also helps you to invest your resources in a better way.

The future of your money lies in your hands. Altering it and understanding it is the first step to a healthy financial life.

 

Popular posts from this blog

Axis Mutual Fund NFO - Axis Fixed Term Plan Series 18

Axis MF has announced that the NFO period of Axis Fixed Term Plan Series 18 (15 Months) under Axis Fixed Term Plan Series 17 19 has been preponded from February 27 to February 24.        --------------------------------------------- Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.   Invest Tax Saving Mutual Funds Online Tax Saving Mutual Funds Online These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)   Download Tax Saving Mutual Fund Application Forms from all AMCs Download Tax Saving Mutual Fund Applications   These Application Forms can be used for buying regular mutual funds also   Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds ) HDFC TaxSaver ICICI Prudential Tax Plan DSP BlackRock Tax Saver Fund Birla Sun Life Tax Relief '96 Reliance Tax Saver (ELSS) Fund IDFC Tax Advantage (ELSS) Fund SBI Magnum Tax Gain Schem...

Budget 2014 Highlights for Saving

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300   The new finance minister Arun Jaitley has just presented his first budget. What measures does the budget contain that will specifically impact savers and investors? Here they are: 1. Housing loans exemption for self-occupied properties increased to Rs2 lakh: Earlier this amount was Rs1.5 lakhs. This move barely keeps pace with the inflation in asset values.   2. Investment limit under 80 (C) increased to Rs1.5 lakh: This is a good move again and offers some relief to taxpayers.   3. IT exemption increased to Rs2.5 lakh, Rs3 lakh for senior citizens. This comes as a minor relief for taxpayers.   4. Annual PPF ceiling to be enhanced to Rs1.5 lakh, from Rs1 lakh: This is in tune with the change in 80C.   5. Long term capital gains tax for debt funds has been rai...

Franklin India Taxshield

Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds Call 0 94 8300 8300 (India)   This fund maintains a quality portfolio of large-cap orientation. The fund manager adheres to a bottom-up investment approach and looks for companies whose current market price does not reflect future growth prospects. Investments are in companies that can drive future earnings growth. Stocks are selected based on the company's financial strength, management's expertise, growth potential within the industry, and the industry's growth potential.   The portfolio is well-diversified across sectors and market capitalisation and follows a blend of value and growth style of investing. The fund follows a predominantly large-cap allocation of over 70 per cent, with small-cap allocation never exceeding 10 per cent since inception.   Performance The fund doesn't dev...

ELSS Funds for different Risk Profile

Match your Goals Risk Profile With ELSS Investment   DIFFERENT TRACKS Unlike funds with a clearly defined investment universe -- large-cap, mid-cap or multi-cap - Tax Saving Schemes do not specify investment focus If you are looking for an equity Linked Savings Scheme (ELSS) to pare your tax burden, the plethora of options may confuse you. Many investors simply opt for ELSS funds , also called tax saving schemes with the best return over a certain time period. However, this may not yield the best results. There are several types of ELSS funds and it requires a nuanced approach to pick the right one. DIFFERENT RISK PROFILES Unlike funds with a clearly defined investment universe -- large-cap, midcap or even multi-cap schemes in the ELSS category do not specify their investment focus. While these schemes have the flexibility to invest anywhere, most tend to follow a defined template. For instance, some funds take a distinct large-cap tilt with a limited exposure to mid or small-cap st...

Reliance Tax Saver Fund Online

Invest in Reliance Tax Saver Fund Online   ----------------------------------------------- Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing ELSS Mutual Funds Top 10 Tax Saving Mutual Funds to invest in India for 2016 Best 10 ELSS Mutual Funds in india for 2016 1. BNP Paribas Long Term Equity Fund 2. Axis Tax Saver Fund 3. Franklin India TaxShield 4. ICICI Prudential Long Term Equity Fund 5. IDFC Tax Advantage (ELSS) Fund 6. Birla Sun Life Tax Relief 96 7. DSP BlackRock Tax Saver Fund 8. Reliance Tax Saver (ELSS) Fund 9. Religare Tax Plan 10. Birla Sun Life Tax Plan Invest in Best Performing 2016 Tax Saver Mutual Funds Online Invest Online Download Application Forms For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call --------------------------------------------- Leave your comment with mail ID and we will answer them OR You can write to us at PrajnaCapital [at] Gmail [dot] Com OR Leave a mis...
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now