Important things to do when you start regular earning
So in this article I will share some of the most important things to do when you start regular earning.It is necessary for you to start early as possible to think for personal finance so that you maximize the output of your earnings. personal finance,investing money,spending money smartly these all are the terms which contain lot of meaning to your future life.Investing money smartly is something like a professional work as there is no proper institution or proper awareness for it in India thats why major of the common people lacks in finance which is also a very important aspect of our life.But don’t worry my website is totally dedicated to personal finance so you should often visit to my website where you will get quality articles related to finance,how to investing money etc.
1. Basic personal finance to know
First of all when you starts earning on a regular basis you should know some of the basics of personal finance or basic personal finance to know.when you starts earning your mindset should be one step further try to invest not to spend much on unneccesary liablities.don’t take EMIs for depreciatng liabilities like car,expensive smartphones etc and the most important thing which Warren Buffet also follows don’t put too much money in savings account (I will tell you later on) also try to stay away from credit cards keep it only for emergency purpose.These are the simple basic principles of personal finance but very effective because majority of the people doesn’t follow these rules but if you managed to apply these steps in your life for a long run I am sure aftter 30-40 years you will notice a huge difference in your life vs your colleagues,friends,relatives life at that time in terms of financial security and capability.
2. How to decide which is an unnecessary liability.
This is a topic which can affect 30-40% loss of financial wealth if not handled smartly because generally most of the people don’t take it seriously and they don’t realize how they end up loosing hard earned money on unnecessary liabilities,so do read it complete and deeply.Lets just make you understand with a practical example, lets suppose you have a job of 1 lakh rs p.m and you booked a new car on EMI basis resulting you a 10000 rs salary cut, you will think thats not gonna take you in a debt or a financial crisis but that is a problem with your mindset you don’t think deeply before spending. Now lets just see this situation deeply, you are paying 10000 rs p.m as EMI of car, now ask a question to yourself that does it worth every penny you spend the answer is no which is practical ground reality because you are using your car just for 1-2 hr in a day of 24 hrs also the value of car is decreasing day by day. instead of doing this if you act smartly you should opt for public transport or cab services and invest that 10000 rs pm through mutual funds in SIPs for time same as in case of down payment duration which will results a increased value wealth for you or which will give a more value then your decreased value car. but wait probably you will asking that a car is a necessity to me then to clear this situation read these bold golden words “Spend only on those which fulfills your practical necessities not on liabilities which fulfills your ego,society pressure,peer pressure,flaunt something”. now this is a thing you have to decide smartly which is a necessity that really fulfills your practical problems I can’t much on this. just read those bold words deeply and apply it on your life.
3. How to invest like a pro
Now This is a topic which requires a lot time to understand but I have written a separate article on this paritcular topic you can read it here “How to invest smartly“. you should also read the wikihow tips.
Some basic tips
Try to think for investing not spending because investing gives you a higher return but spending is a thing in which you have to deal smartly, avoid unnecessary liabilities.
Avoid credit cards keep it for emergency and don’t keep much amount in savings account because practically it depreciates the value of your money I will tell you why because it has interest rate of 4 % and the inflation rate is 7 % so there is 3 % loss of money value each year. just use it as a sake for to fulfill your daily needs and emergency.
So these are the important things to do when you start regular earning.do keep these points in your mind and apply in your practical life
Try to invest, be smart
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- 1 Important things to do when you start regular earning
- 1.1 1. Basic personal finance to know
- 1.2 2. How to decide which is an unnecessary liability.
- 1.3 3. How to invest like a pro
- 1.4 Some basic tips
- 1.5 Try to invest, be smart