Once you are in a position to save, accumulate wealth through long and steady savings.
In June 1928, the humorist Robert Quillen labelled the expression “Americanism” as using money you haven’t earned to buy things you don’t need to impress people you don’t like. This article is about five basic tenets relating to your personal finances that help buy financial flexibility. These are by no means “new, improved with better shine”! All five are time-tested and relevant today (no…any day). Let’s begin.
Spend less than you earn
This is simple and one gets it instinctively. Spending more than you earn only pushes you into a bigger financial hole. How can one save where there is nothing left? Add to it, the stress it piles on you. Think of Floyd Mayweather (well-known American boxer won $75 million for one fight, blew it and became bankrupt), it is a reaffirmation that your capacity to save does not depend on your earnings but, spending.
Controlling spending habits is hard but, do you like going to bed at night knowing that the party you paid for on credit card is one more EMI to an already long list? Breaking spending habits is hard but harder is the fact of living with an increasing mountain of debt and interest.
Or sample this quote by well-known American civil servant J Reuben Clark Jr. -”Interest never sleeps nor sickens nor dies… it never takes a vacation…once in debt interest is your companion every minute of the day and night; you cannot shun it or, slip away from it, you cannot dismiss it and whenever you get in its way or, fail to meet its demands it crushes you”. Spend less than you make.
Fixed costs
This story is from the August 2017 edition of The Finapolis.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the August 2017 edition of The Finapolis.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber? Sign In
7 Ways to Prevent Text Neck
Our head is heavier at an angle than it is at a neutral position. That means our increasing usage of smartphones for reading, texting, etc is putting undue pressure on our spine
How To Take Your Networking To Next Level
Networking is one of the best ways to use your time
5 Fun Ways To Save Money
There are several simple ways to reduce spending and rack up more cash. Sukanta Kundu lists some interesting ones.
In Search of Higher Returns Amid Falling Rates
As Bank Deposit Rates Fall, Even Conservative Investors Are Switching Assets. Where Can They Go?
National Savings Certificates Help as Interest Rates Fall
National Savings Certificates (NSCs) have been among the most popular tax-saving options for ages. In spite of the advent of market-linked investment products such as equity-linked savings schemes (ELSS), the certificates have retained their charm for certain sections of society. In this column, let us discuss the various facets of this special instrument of investment.
What Drives Us to Invest?
I had made the journey from economics to finance. As part of Keynesian economics, we were taught about the three motives to hold money: the transactions motive, the precautionary motive and the speculative motive; all through my teaching career that remained part of my Keynesian economics. But two decades, later when I immersed myself into the world of investment, I had to develop my own tools to understand the new discipline and make my investors understand the working of their own minds. One night as lay turning on my back, poring over the day’s happenings, suddenly I made a strong connection between what I had studied years back and the problem I was grappling with now: the motives.
Ask The Finapolis
Col. Sanjeev Govila (retd) of Hum Fauji Investments answers readers’ queries on investments, taxation and personal finance. Do you have a question you want answered? Email your question to feedback@thefinapolis.com
Input Tax Credit To Benefit End-customer
Looking at the scale of India, it is reasonable to expect 3-5 years for the system to stabilize
Will GST Really Spike Up Your Bills?
As goods and service providers can claim input tax credit, your net tax bill will reduce say experts
The Bull Run Is Here To Stay
Karvy Finapolis’ event —“Is this the mother of all bull runs?” — evoked a thunderous response from investing public recently in Hyderabad.
