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  • 11- Set Log Term Goals That You Can Achieve

  • Sometimes it happens to achieve short term goals, but we often deviate from the long term goals. So instead of complicating them, make them very simple and maintainable.

  • When the author set a long-term financial goal at age 25, he set about buying his new car and paying off college loans by age 30, buying his own house by age 35, and netting a million dollars by age 40. He had included in his goal to make worth and retire by buying a beach property by the age of 45.

  • Although these goals changed over time, one advantage was that the writer constantly thought about his financial freedom and had a purpose to work hard. If you have a long term financial goal, you will soon overtake it in trying to achieve it.

  • 12- Know and update your net worth

  • Make a net worth statement and update it from time to time, after all you are managing money only to increase your net worth. Net worth is the value of what you have in dollars. Writers check their net worth every month so that they can make arrangements before emergency.

  • To prepare the net worth statement-

  • Make a list of all the assets like car, real estate, savings, house and add their value as well. If the price of an asset is too low, let it be.

  • Also list liabilities like loan, credit card depth and add up their value.

  • Now subtract the value of liabilities from these assets. The cost remaining is your network. Which should be updated from time to time.

  • 13- Prepare a written budget and evaluate every month

  • Learn to make a budget and follow it because you have to ensure that the expenses are less than the earnings. Although, it can be a bit difficult in the beginning, but after doing it two-three times, you will not take any time in this work.

  • For budgeting, you have to develop, track and analyze your budget. Make a budget, check and keep track on the 1st of every month and analyze which expenses are right and which are not. Make changes if needed.

  • To develop a budget, you should know how much money is coming and going every month. For example, what comes in your pocket includes salary, bonus, commission, dividend, interest and gifts, whereas there is a long list of things that are spent, such as housing, utility – ie electricity bill, cable, internet etc. – Expenses like transportation, food, entertainment, gifts which are occasional – insurance, loan, savings, 401k fund and emergency fund. You have to make a budget according to your expenses and earnings. If you add things like saving and investment in your budget, then in such a situation if your entire earning goes into budgeting then it does not matter.

  • Once you have developed the budget, you have to track the budget for whether you are implementing it or not. You can also track your expenses, but debit, credit and cash receipts are also an option. Some expenses are equal every month like rent, transportation but some expenses keep on increasing like entertainment, food, electricity bill, clothing etc. You will be able to keep the remaining money in your savings account.

  • If you know your expenses, then you will be able to easily analyze and make necessary changes, such as where has been spent more, what not to take next month, etc. If you stick to your budget, then after two-three months it will become very easy, due to which you will not only be able to manage money, but will also become financially stable.

  • 14- Give yourself a financial start every year

  • He already had a debt of $60,000 when he started as a writer. This loan became the financial physical ie financial start of the writer. They had to earn, save and make money because they had to pay their debts. In his first job, he had also taken a loan from his boss.

  • Many people do not give themselves this financial physical, you can do budgeting in December every year to do this, analyze what was your income in the current year and what did you spend? How much can you earn and how much will you spend in the coming year? Also mention your net worth which we talked about in Principal 12.

  • After analyzing all this, make a strategy to manage your money. Give yourself a financial physical every year and keep checking it every month, in this way you will continue to take right decisions related to money.

  • 15- Save or invest 50% of the increased amount on increase in salary

  • Suppose you were living well on your current salary, if your salary increased, then you put 50% of this amount in improving your life and 50% to save or invest.

  • This rule is very simple but most of the people are not able to follow it because after increasing the salary, they start budgeting etc. In this way, you will be able to save a good amount in your life time and invest for the future.

  • The author says that he saved 50% of his annual income for many years by saving the increased salary and bonus every time.

  • 16- Save 90% of bonus and unplanned income

  • It usually happens that we spend our bonus money on our lifestyle. But you should keep in mind that it is not necessary that you always get bonus, so take 10% of it for what you really want to buy and put the rest 90% in saving or investing. Apply the same rule to the rest of the unexpected money. If you get property of your parents or get tax refund, save 90% of it. Because it often happens that when we realize that this money is not of our hard work, then we spend it on useless expenses.

  • 17- Know your benefits as an employee

  • Companies often offer many facilities to their employees and these facilities are quite complex, so talk to senior HR. And ask them questions related to this matter. Keep collecting information till you understand everything.

  • The facilities offered by the companies include health insurance, vacation, sick days, bonus, stock options, 401K plan, etc. But all these terms are often complicated, and they also have eligibility. Therefore, take a decision only after collecting all the information. If you manage these benefits, then you will get the benefit of crores in your entire career.

  • 18- Emergency fund

  • Here there is confusion. When we talk about emergency fund, only negative comes in our mind that if something bad happens in life then emergency fund should be there. It is not so. An emergency fund is a name to be financially prepared for both good and bad situations. Now suppose you made a friend and he is getting married in another country. If you want to go to his wedding, then in such a situation you need money for plane tickets, accommodation and gifts, then in this emergency you can use your emergency fund.

  • On the other hand, if you have a medical emergency, have to do the maintenance of the house or have lost your job, then you will have an emergency fund, so make your emergency fund according to every year and put more money in that fund as the year changes. Keep the goal of

  • 19- Celebrate Emergency Month every January

  • Take one month of the year and consider that month as your emergency period. You will see that you have started giving priority to your most important things. You will understand whether it is better to eat outside or take food from home. What if you don’t go to see a movie for 1 month? This will give you an idea of ​​what your life would be like if you had only an emergency fund and this work is quite fun too.

  • The author and his wife consider January as their emergency month every year since their marriage. He chose January because, being a holiday month, it costs a little more. And in this way not only do they save money but they are also able to give time to their relationship.

  • 20- Coupons are profitable

  • Only 3% of people use coupons. Because others feel that using coupons is very complicated or else they will look cheap by using it.

  • The authors use coupons. He used to do it even when he started his financial journey and even when he was earning a lot of money.

  • Before going out to eat, go to the website of the restaurant, there you will definitely find some offer. There are many avenues from where you can get coupons. Don’t feel embarrassed using coupons. Every year you will at least save money by paying your phone bill.

By REEMA SRIVASTAVA

I AM MUKESH KUMAR SRIVASTAVA

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