The Beginners Guide to Manage your Money Effectively 101

Managing your own money effectively is a LIFE SKILL.. agree/disagree?

Well, honestly, it’s not exactly a “life” skill, but it is a “lifestyle” skill…

So today, I start a series called “The Beginners Guide to Manage your Money Effectively 101”…

One needs to know and consider multiple aspects when managing your money more efficiently…

Some of them being...

Tip #1: Not avoiding equity as an asset class, as equity, like all other asset classes, have its pros and cons.. understand the risks and then invest sustainably…

Tip #2. Managing your debt, including credit cards (Yes, that’s a great financial product ONLY if you can use it efficiently), loans, etc.?

Tip #3. Don’t run away from loans… It can prove to be a good product if you know how to make good use of it…

Tip #4. Managing your taxes efficiently, planning them well in advance and then paying them on time. And yes, filing your returns accurately and on time!

Tip #5. Consistency of investing is one key aspect of “Creating a healthy Wealth Portfolio”… making the most of the Power of Compounding.

I completely believe in Albert Einstein's quote, “Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn't, pays it”.

Tip #6. Budget: Talk about the different budgeting rules, how much to save, how much to spend and how to effectively do it to build your first 1CR portfolio and then manage the same to grow it exponentially…

Tip #7. Financial Goals: very cliched concept.. but trust me, if you have your goals penned down, it becomes MUCH easier to achieve them without hampering your remaining financial goals…

Tip #8. Automating small payments: like phone, wifi, electricity, etc., to save time and also earn points…

Tip #9. Paying your bills, esp credit card, on time: importance, benefits, etc.?

Tip #10. UPI, wallets, BNPL, etc.: whether to use, how to use them effectively without compromising your security…

Tip #11. Protect your financial data use of DigiLocker or another online tool which can be used effectively to enhance your overall efficiency in Managing your Money.

Tip #12. Bank accounts, mutual fund folios, insurance policy documents and other essential must-know aspects about your daily Financial Management that one needs to be aware of.

And yes, your nominee also must be aware of where you store the same so that in case of an emergency, they are able to access the same…

Tip #13. Stop sale shopping, impromptu retail therapy, etc., only because it's “apparently” on a discount is an incorrect reason to spend. Sleeping over, planning your expenses, and buying ad-hoc stuff only from your monthly miscellaneous budget are essential.

Tip #14. Create a second/ third source of income... how to start a side hustle, generate income from your current investments, or plan a strategy wherein you can create a Plan B, in case your current Plan A doesn’t work…

Tip #15. Credit Score: an often ignored aspect in most people’s lives.. what is it, how to grow, importance, etc.

Tip #16. Retirement: A very important of one’s financial goals.. post-retirement expenses, health care facilities, when to buy your post-retirement house, etc., are important but often get less priority… Planning succession and creating a will is also an important facet of retirement planning...?

Tip #17. Insurance: Yes, Term and Health insurance are non-negotiable, but it is not true that ALL other forms of insurance are bad!

Tip #18. Staying healthy and Fit: despite having health insurance because unless you are healthy, you will not be able to earn as much as you imagine, nor will you be able to save the desired amount!

Tip #19. Learn all about Money Management so that no one, and I mean no one, can take you for a ride with YOUR hard-earned money!

Tip #20. Philanthropy: Last but not the best, it's important to plan to give back to society so that the disparity is lowered and you are happier at the end of the day!?

So, I am super excited to start our journey of “The Beginners Guide to Manage your Money Effectively 101” are you?