Managing your money is a task in itself and is a tricky prospect. There are too many variables - domestic and sometimes, international as well - which impact the finances.
The options, in terms of instruments, are many. "In a developing country such as India, mutual funds and equity are the more popular investment avenues.
Understanding your money:
Money is not just currency and coins.
According to dictionary.com, money is 'any article or substance used as a medium of exchange, measure of wealth, or means of payment'.
At the start of your own money management course, you need to ascertain your financial standing at that particular point in time, and then make decisions.
It is a sure way of getting into a debt trap.
Say no to 'plastic' money:
People who manage their money smartly seldom need to resort to 'plastic' money to meet their requirements. At over 40% of interest, it is a sure way of getting into deep trouble.
Credit cards, or 'plastic' money, are considered a bane, because people tend to get absorbed by the convenience factor.
Although companies sell credit cards aggressively, by claiming the card attracts no fee or charge for life, they do not disclose the underlying conditions that come attached with these.
Credit cards are convenient but bring a baggage of being calculative enough for the expenditure.
Make financial allies:
When investing, a basic rule is risk embedded in the nature of a particular investment tool.By principle, it means higher the risk, greater the return, and vice versa. A midcap or smallcap stock may be a multi-bagger, but it could also lose you money, real fast.
Diversifying one's portfolio, or making different financial allies, will only help one capitalise on all the investment opportunities that come your way.
Long-term relationship:
Stay invested is an oft-abused term. Money invested and managed well will positively yield handsome returns, but only over time.
Taking money for granted can prove to be detrimental not only in the immediate future, but also in the long term.
Source: http://www.rediff.com/business
The options, in terms of instruments, are many. "In a developing country such as India, mutual funds and equity are the more popular investment avenues.
Understanding your money:
Money is not just currency and coins.
According to dictionary.com, money is 'any article or substance used as a medium of exchange, measure of wealth, or means of payment'.
At the start of your own money management course, you need to ascertain your financial standing at that particular point in time, and then make decisions.
It is a sure way of getting into a debt trap.
Say no to 'plastic' money:
People who manage their money smartly seldom need to resort to 'plastic' money to meet their requirements. At over 40% of interest, it is a sure way of getting into deep trouble.
Credit cards, or 'plastic' money, are considered a bane, because people tend to get absorbed by the convenience factor.
Although companies sell credit cards aggressively, by claiming the card attracts no fee or charge for life, they do not disclose the underlying conditions that come attached with these.
Credit cards are convenient but bring a baggage of being calculative enough for the expenditure.
Make financial allies:
When investing, a basic rule is risk embedded in the nature of a particular investment tool.By principle, it means higher the risk, greater the return, and vice versa. A midcap or smallcap stock may be a multi-bagger, but it could also lose you money, real fast.
Diversifying one's portfolio, or making different financial allies, will only help one capitalise on all the investment opportunities that come your way.
Long-term relationship:
Stay invested is an oft-abused term. Money invested and managed well will positively yield handsome returns, but only over time.
Taking money for granted can prove to be detrimental not only in the immediate future, but also in the long term.
Source: http://www.rediff.com/business
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