Smart money management tips for youngsters

It is good to learn the techniques of handling money at a young age. Most of the people start their financial education at a later stage and by then they are already entangled in debt. To stay one step ahead learn managing money at teenage. This is the perfect time as you are given a small amount as your pocket money. If you could plan and learn the techniques, you will soon learn how to save from this scanty amount. Check out the following tips, that would be beneficial to you.

1- Learn the importance of being frugal. Frugal living does not mean that you need to live like a miser. Just make sure you are not extravagant. When buying stationary, check out for options where you could save. Check with different stores and you could find cheaper options readily available at your near by area. If you have habit of reading novels, then check online options, they not only deliver free at your place but also give a good discount. Online stores offer good discount in almost every product and they also give you options to pay when delivered. So, you need not have to worry if you do not have credit cards.

2- Now, a days teens also get their own credit cards. However, if you own one, be careful how you use it. If you have any confusion and you are not sure of the safety, take help of your parent. Do not go for online shopping if you do not trust the site. And while using credit cards at stores and restaurants, check the bill and check the number of your credit card. Dispose the credit card bills properly.

3- You could save by doing good research before buying anything. You can also save by stopping  frequent party with friends. Yes, you need not have to stop all fun activities, but you can reduce the number and still enjoy your life.

4- Follow your parents and learn how they manage everything with a limited income. Talk to your parents, ask them all your doubts and get a clear understanding of how to manage money.

5- When it comes to managing money, then nothing can replace a budget plan. Learn budgeting, with a proper budget plan you could plan your spending.You will also understand how to strike a balance between your savings and spending.

6- You could also save a considerable amount by limiting your cell phone usage.

A teenager often imagines that it is too early to enter the complicated world of financial management. However, every day counts when it comes to making the most of your money. So keep in mind what you have read and remember that it is never too early to begin money management. If you look at the world's richest individual, then you can see they all started very early to understand how money works.

Are you planning to sponsor your own Wedding?

Hi Readers,

Wedding is a high cost budget in Indian culture. We Indian celebrate wedding as a grand celebration with a lot of spending on everything that is part of wedding. Yes, marriage is something that should be celebrated and enjoyed to remember till the end. However, if you do not want to be left  and under debt post marriage then plan it early.

In our tradition, girls settle only post marriage and boys settle before taking the vow. According to tradition its always the parent who sponsor their own child's wedding.  However, if you have got a well paid job, then plan it so that you could help your parent in your own wedding. That would be like a gift and stress reliever for your parent.

For girls, this is a golden chance to help your parent. Post marriage though you could still help your parent with finance, it does not happen regularly like a boy can do. So, girls help your parents by spending the maximum at your wedding. Yes, some parents are humble not to accept girls money at any cost. So, you girls can spend on your own jewelry and bear other personal expenditure.

Even boys you can sponsor your marriage. Mostly, what  have seen is in Indian middle class family, no body plans for a wedding, specially the boys. When marriage is fixed then they go for loans. However, opting personal loans is quite expensive. So, it is good if you plan your wedding budget ahead.

Set some money aside for the marriage expenditure on a regular basis. Plan to purchase jewellery with schemes available at major jewellery showrooms, in this way you could save a good amount of money. Keep aside money for personal expenditure on the D-day. This way you can reduce the burden on your parents.

Planning, saving and investing wisely could help you to stay out of major credits. In general Indian mentality prefers to get settled post marriage. However, major debts at the beginning of your marriage life could spoil the entire charm of it and could lead to awkward balancing. People learn balancing life with their spouse only post marriage. By this time, if you could manage to begin your marriage without any debt then that adds more charm and allows both of you to plan ahead for rest of your life.

Start saving as early as possible

Hi Readers,

If this is the first year of your job and you have not yet started planning your savings then you could end up paying a good amount at your tax. Yes, if your salary falls on to large bracket, you need to pay tax anyway. However, you need to start saving so that you could reduce the tax amount.

1- Firstly,I would suggest to take up insurance policy. However, do not place all your money that you want to invest in insurance in just one policy. Try investing in multiple policies. This way the premium that you need to pay each year would be distributed and in case you could not pay the premium at some point, then you have option to close one policy and run the other.

Some people go for policy that would require to pay a large amount at one time. But, this is not good planning. If you could not manage to pay the premium at that time, then their is risk of becoming defaulter. So, the best way would be to distribute the total premium into different months and take up more than one policy.

2- Secondly, I would suggest you to open up a Recurring deposit with your bank. This way every month the bank will deduct the specified amount from your salary account. Even though the amount saved in RD account is less it would compound and give a good return at the end. The interest on RD is same as the fixed deposit. So, this is best way to save in RD than in your saving account.

3- If you have education loan. Then start repaying the same. Try to complete the same as early as possible.

Most parents in India do not allow their children to handle their own money at the beginning of their job. They would suggest you not to spend from your salary account, instead would give pocket money on the account that they had opened for you. But, I would suggest you to handle your money. The sooner you start managing money the sooner you learn the techniques. 

In my next post I would dedicate it to girls and boys, who are interested in financing their own marriage.

Stay tuned.

Be Money Wise @ 22

Hi Readers,

In India, youngster generally start earning at the age of 22 or 23. So, my first post is dedicated to these youngsters. It is a time to party when you finally get a appointment to your dream job at your dream organization. You would have planned a lot, how you want to spend your earning. Parties, discos, friends and outings are what would have revolved all in your mind. Yes, of-course these are the benefits that you can afford at your own earnings. You do not require your parents pocket money and you are finally independent to decide how you want to enjoy life.

At such a age, it is general tendency to feel free and fly like a bird. However, you have stepped onto your 20's and teenage is over. You need to learn slowly the vast reality how money works. If you learn the technique of using money to reap benefits then you will be master of your money. Your money will work for you and you need not have to depend upon just your job.

In many Indian families, parents do not talk all about their financial condition. They neither let their children know how they manage with finance, be it debt or savings, nor do they share how they have planned their own future. You might belong to affluent family and would have inherited a large amount of wealth. However, still you require to know how to plan for future.Certain families run on continuous debt. If you belong to such family then you need to overcome the debt and manage well to overcome debt in your life.

Yes, for first few months, you would love to buy new clothes and accessories for all occasions. However, you need to save a part of your salary for the future.You also need to invest well to reap the benefits of return.

In this blog I would suggest tips that would help you manage your earnings. The next posts would come up with savings and investment plans.

Thanks