MadAbout

YOU DO NOT BECOME POOR AND MONEYLESS OVERNIGHT

But except in a major global or national financial crisis , you do not become poor and moneyless overnight . It takes time for your financial resources to dwindle down and hit rock bottom . So don ’ t wait till you have your back to the wall – start protecting yourself from the start .

THE BEST PLAN IS TO KEEP AN EYE ON YOUR FINANCES RIGHT FROM THE

BEGINNING .

This way , you know how much you have in reserve at any point of time . If you find that your money is getting depleted faster than you want , then it is time to take stock and figure out what to do now . You have to get into what is called financial survival mode . The first step is to calculate your

income , expenses and debts like , loans , credit cards , etc . Prioritize your expenses and debts and pay the crucial ones – those that are absolute necessities ( EMI on house / car , school fees , electricity , water , basic food , insurance , tax ).

RUTHLESSLY CUT OUT UNNECESSARY EXPENSES

Next , ruthlessly cut out unnecessary expenses such as gym / club membership – go for a run , exercise at home or in the park -cancel your 2nd mobile connection , if you are living in rented accommodation , try and shift to a less expensive one , give up using the 2nd car , use alternate transport – bus , metro , walk where possible , besides saving money , this will also improve your general state of health and wellbeing . Stop eating out , cook at home , it ’ s cheaper . Reduce electricity bills by switching off lights , fans , electrical appliances when not being used . There are many more ways you can find to cut down your spending .

Finally look for ways to earn money . Forget your ego , take up a 2nd job , it does not matter if you are over-qualified for it ; it will bring you the money that you desperately need . You can make and sell handicrafts – online retailing is a good option . If you have extra space /

rooms in your house think

of taking in paying guests

or tenants – register with

organizations like Airbnb ,

Stayzilla which help

travelers find places to stay .

LOANS WILL ONLY ADD TO YOUR LIABILITIES

Taking a loan to help

you tide over a financial

crisis is not advisable

– it will only add to your

liabilities . Borrowing on

your credit card is just as

dicey – it will come back

to bite you when you

least expect it . But , if in

spite of all your measures

you still end up on brokestreet

, remember that

hardships strengthen

your character , they

make you rethink your

priorities and restart

matters from a different

angle . It teaches you to

be grateful for what you

had and to be careful

in future . In times of

financial trouble you

know who your true

friends are and you get

to know your capabilities

and talents .

So stop worrying about

running out of money

– take steps to ensure

that you don ’ t and if

you cannot do that , for

whatever reason , then

see it and use it as an

opportunity to become

a stronger and better

human being .

RULES FOR CHANGING YOUR MONEY MINDSET

Rule 1

Savings Doesn ’ t Make You Rich The scarcity of money is the reason why throughout our life we always intent to make big savings . Accumulation of money for a certain time is a stereotypical money mindset . Rather invest in shares , properties or mutual funds- where with little effort you can actually multiply your money

Rule 2

Check Your Expenditures A monthly budget plan helps you to check your expenditures and delivers you certain in hand cash at the end of the month . Whenever you tend to spend money for anything beyond this budget plan think twice “ Is it really necessary ?” This way you can actually curtail your spendthrift nature .

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