Make every dollar count

Once you withdraw cash from the ATM,it gets spent some how or the other.This is a problem many of us face.While we know, it is important to stash away an emergency Fund or plan wisely for our retirement ,we fail to do so.For some of us, the process just seems too complex ,for others it is difficult to devote time to it.

Take time to think about how you can better manage your money and reap tangible benefits.It need not be difficult,simple steps can go a long way.

For instance, saving $ 200 a month,which is less than $7 a day,throughout your working years (assume 40 years) would grow to over $140,000(assume a conservative return of 2%).Paying credit card bills in full, can also result in substantial savings.

Take the first step today.Make the effort to learn about money matters now.

1)Keep track of expenses
Create a simple XL sheet which can track your monthly expenses.Categorize them into
Fixed and variable expenses.Fixed meaning those that will remain unchanged,for eg –overheads like rent,home installment payments,insurance premia,domestic worker’s pay,school fees etc.Variable like your monthly grocery,utility bills and other miscellaneous expenses.Prepare an estimate of your expenses and treat is as a budget.
Try and stick to your budget.It may not be easy at first,but once you get the hang of it, you will notice that you need not list out expenses in detail every month,just a brief estimate will do.Once you have the figure ready,withdraw an amount at the beginning of the month and try not to make further withdrawals.

2)Save first
Try to limit the outflow of your debt payments to about 30% of your monthly salary,with this you can be sure to save at least 10-30% of your monthly income.Set this amount aside –to create an emergency fund,invest in bonds or equity,monthly investment plans etc.

3)Take time to learn about financial products.
This is the most important step…once you’re done with step (1) and (2).Invest wisely
and according to your risk profile.Remember it’s never too early to start.Enlist the help of a professional financial advisor who can help you to make the right decisions.