How to be wise with your money

Source: – Thu, Nov 22, 2012 8:30 PM PHT

We don’t want to be materialistic but we have to face the fact that we need money.

Someone rightly said that those who say money can’t buy you happiness, simply don’t know where to go shopping. It pays immensely to be wise about money. But are we? Read on, and moneywise, be wise!

1) Save, Save, Save

Cultivate this golden habit if you haven’t already. This habit is worth in gold and nothing but your savings would see you through your rough patch. Whatever be your income, start saving without any further delay.

2) Watch Your Spending

It indeed makes a hell lot of sense to listen to Warren E. Buffet, the second richest man in America, isn’t it? He very rightly said that keep a close watch on your spending. Buy things which you need and not because of peer pressure.

3) Borrow Only What You Can Repay

Living on credit cards and loans is too tempting an offer. However, both come with an element of risk. Credit cards and loans don’t make you rich, so weigh your pros and cons to save yourself from falling in the trap. So, look before you leap.

4) Don’t Rely On One Income

Make this your guiding philosophy. With uncertainty, job cuts and recession all around, it is foolish to depend on only one source of income. Invest and create a second/third source of income. That would do a whole world of good to you.

5) Split Bills, It’s Perfectly OK

Honestly, there is no shame in splitting bills no matter who is accompanying you. Don’t volunteer to pay all on your own since it would burn a big hole in your pocket in the long run, without you even realizing it.

6) Go For Health Policies/Insurance

No one has seen the future, right? With advancement in medical science, today even life-threatening diseases can be cured, but at a cost. It is always better to be covered by such policies. They would prove to be a boon in the case of medical exigencies.

7) Take Risk, But Calculated Risk

Life itself is risky; nobody comes out of it alive. But still it makes perfect practical sense not to test the depth of water with both feet. Better be safe, than sorry.

8) Discuss About Money With Family

Keep your family in the loop regarding your finances. That won’t lead to any unrealistic expectations on their part, thereby saving you from unnecessary hassles.

9) Think Big, Start Small

It’s all about the concept and the way you showcase it. While starting a business, think big but take small steps. Only when you are extra sure, take a giant leap forward.

10) Never, Ever Discuss Money Matters Publicly

Honesty is a rare commodity in today’s time. Money matters are best kept secret to save yourself from being duped. It’s your hard-earned money after all. Do all that it takes to multiply it and make yourself financially sound and secure.

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