Posted: Tue Aug 15, 2006 11:26 pm Post subject: RE: How smartly we can manage money
Hi Maclister
It's good to hear that you are able to manage your money properly. Money management is one of the important elements of our life. But unfortunately many people are not aware of it and for some who are aware are not serious about it.
The most important key for money management is time. The more time you are prepared to invest in your money matters, the greater return you can expect from it.
Looks like you are managing your funds well but some of the points that I can tell you from my own experiences, so that you can manage it even better.
You should avoid unmanageable debts like too many credit cards or loans with high interest rate etc. Please note that this doesn't include business start up loans or mortgages because these can be regarded as long term investment.
Another thing that you should do try to develop the saving habit. And believe me its very important. Plan for your future and for your kids. Because we don't know that what lies ahead and it's important that we save funds for some unexpected events.
Posted: Wed Aug 16, 2006 12:11 am Post subject: Here are some usefull tips from my own book.
Hi, Maclister
Welcome to the Community. Hope you will enjoy the stay.
The best I can suggest you is try to draw a line between the good debt and the bad debt. It’s always advisable to pay off your existing debts like outstanding amount in credit cards or any payday loans (which carry high interest) before setting aside cash for savings.
Try to prioritize your debts and make a list for which you need to pay first. Then if possible try to look for alternatives for saving and investing and if you fell the need then try to rearrange your list. Believe me, I am doing it from a very long time and now I am close to 60 but I still try to follow this method.
Secret Tip: For student loan, select payment option as automatic deduction from your bank account as this will allow you get 0.25% interest rate deduction.
Posted: Wed Aug 16, 2006 12:36 am Post subject: Re: Money Management
Hi Maclister,
It's a good subject you have started. Jerry I just want to add few more points after your views.
Proper Money management helps us to control our spending, manage our debt properly and to build a favorable credit history.
This are the few points on which we need to take care while money management.
Compute the total costs: Try to figure out the total cost in a month.
Borrow money wisely: Always take loan when you really need. It is not free money. You will have to pay it back with interest.
Repayment Plan: Try to repayment the borrowed money as early as possible so that you have to bear less interest rate. It also helps you to build good credit score.
Budgeting: Budgeting is the key of financial success. It helps you to keep track of your cash flow. There is a discussion on this forum that how we can do the budget in the section "Need some help on budgeting!!".
Invest money like a business man: Investing your money needs a bit more planning and patience than saving your money. Since, while saving our motive is to protect money but whereas in investment our main goal is to earn from invested amount.
jerry
