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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