Money Talks Weekly

Money Talks – Freedom to Spend !

Hi All,

Money Talks Weekly

This is my weekly learnings to our email subscribers, same will be shared in our website and linked in. Please do share if you think it would benefit to your dear ones.

During my graduation time, my cousin got married. During the time of his marriage, we went to jewelry shop to buy bangles for the bride. His mother was choosing it. It was pretty costly shopping that day. From the eyes of Mother, it was evident that she liked the bangle.

Immediately, my cousin said to pack one more bangle along with the bangle selected for bride. He gifted extra bangle to his mother. My aunt was happy. She loved the gift, everyone in the family appreciated my cousin’s gesture of gifting mother and would be wife same way.

I was pleasantly shocked to see my cousin’s ability to take quick decision to buy that expensive gold piece. That day, I have got the inspiration to earn money and become financially independent.

We all need money, money may not able to make you happy. But sometimes, Money can be a tool to make other’s happy. To do that, you need good pocket to take money decisions without any guilty.

P.S. I don’t means impulsive shopping here.

Happy earning, Happy Saving.

Money Talks Weekly

Money Talks – Think SIP before EMI

Hi All,

Money Talks Weekly

This is my weekly learnings to our email subscribers, same will be shared in our website and linked in. Please do share if you think it would benefit to your dear ones.

Loan and Debt is part of life, many people think that without taking a loan they can buy any capital goods in their life. It could be vehicle, house hold machines. This believe has created from long time.

Olden days, in shops they used to sell these on instalment basis with an interest. Now things changed, we have zero interest loans. We think about the generosity of shops. What a nice people to offer us loans without interest.

Let’s be sure, no one can run business without any income. There will be catch. It could be financiers getting discount on item purchased. We may think, that ok. Let them earn from shops. But, there is an opportunity we are missing. What is it ? We could earn discounts if we pay full in cash.

Plus one more disadvantage, for the next few months whatever the EMI period, our savings is stuck. Our spending habit is changing. Next time if we want something, we will buy with loan. If spending become our habit and miss EMI, we are in debt trap.

Think before act. Be a sensible spender, lead a life without loan. Become buying, accumulate that buy. Think SIP before EMI !

Happy investing.

Money Talks Weekly

Money Talks – Managing money is different from making money.

Money Talks Weekly

This is my weekly learnings to our email subscribers, same will be shared in our website and linked in. Please do share if you think it would benefit to your dear ones.

Managing money is different from making money.

People usually say, Income is the problem. Do you think, are you making good income ? do you want more income ? Mostly you may have ‘YES’

If you are salaried person, there is a lot of dependency to improve income. You may need promotion or salary appraisal. Both are not in your control.

One thing is in your control. That is your money in hand or Income in hand, you can start manage your own money well. How ? Keep a track and see where you cut !

First of all, see the category of your spend. Identify major category of money follow.

We can divide our money outflow in to – Accommodation, Food, Travel and lifestyle shopping. Where are you spending more ? can you make one area more meaningful. Meaning, Food – Are you eating out or eating packed food. That will be expensive and unhealthy. If you focus this area you will able to save money. Travel – Are you spending to much on Uber and Auto, can you make it public transportation ? Are you a shopping addict ? can you shop with a plan and avoid quick shopping’s. you will figure out ways to cut spending.

Managing money is different than making money. We are talking only one aspect of managing money, that is spending. If you can keep a control over spending, you can save more. That itself a hike in your income one way.

When you cant catch your take a control of your income hike, work on your controllable. Your controllable is your spendings. Keep a watch on your big spend items. Cut it without impacting your lifestyle or controlling your confidence level.

That effort definitely boost your saving potential, we you get extra savings. Don’t keep it in your bank account, Invest immediately ! Call your advisor to increase your SIP !

Happy Savings.

Money Talks Weekly

Money Talks – Bermuda Triangle of our Money !

Money Talks Weekly

This is my weekly learnings to our email subscribers, same will be shared in our website and linked in. Please do share if you think it would benefit to your dear ones.

I was talking to a friend of mine. He has created good wealth in property. He used to loan and buy assets. He used to earn rent, add some money from his  pocket and service EMI. Once EMI is completed he is owned that property. That was his usual practice.  During covid time, things didn’t go well. Rent didn’t collected as per expectation, tenure left the building. He got into trouble of paying EMI from his pocket.

He is a professional, he earn pretty good money monthly. This loan EMI burden has created a mess in this family and money life. There was a lot of problem related to this excessive EMI payment. They have sold all Gold and small savings with them and closed EMI. Now he is debt free, still not able to rent out the property.

He is making 4 Lakhs per month, his monthly expense is 2.5 Lakhs. He should have 1.5 Lakhs in savings, but not sure where is it going ? He don’t have any liquid savings, he got assets. He is not leading a happy money life, this leads to small family fights (not a serious one)

Can we relate this issue? This is happening with many of us. We think our expense is something, but we end up spending more. If you are in business / self-employed, we may be making less than we actually think, we are making. This is a real problem to address.

We have to keep a proper accounting of income and expenses. In self-employment, income may not be consistent but we should ensure are we really making targeted income year on basis ? else, we have to keep a check in place.

Same time are we spending as per the budget ? or are we over shooting ? are we mixing personal and business expense ?

If you address above 3 questions, we will able to figure out, why are missing our savings targets ?

This has to be address it, right now.

This our own Bermuda triangle ! If you address this, your rich life will start here !

Happy savings.

Money Talks Weekly

Money Talks – Succession Planning

Hi All,

Money Talks Weekly

This is my weekly learnings to our email subscribers, same will be shared in our website and linked in. Please do share if you think it would benefit to your dear ones.

I am blessed to understand money related issues of my clients. They show generous trust to share their family issues around money and wealth with me.

We always see not having money is the problem. But having money also a big problem. I met a person, he has a beautiful family, loving daughter, grand children and son-in-law. He was a NRI. He retired as a successful businessman with pretty good wealth. He got good property in Kerala and bank balance.

He lost him wife, couple of years back. She was supportive and managed family and family money matters. They have not disclosed much wealth to daughter. Daughter and family is leading a good family, husband working in a MNC. Earning decent income. But my client has pretty good wealth that is beyond daughters or son-in-laws imagination.

There are rented properties and it required managing. he is aging but healthy. He has to handover his wealth to his daughter. She has not seen and managed this kind of wealth in her life. Its same for her husband too.

Here, we need is a Succession planning without losing the protection of my client and his family need to take over this asset. They should learn to manage it going forward.

This handover should require hand holding, more matured approach. It should not be an overnight wealth, this should not effect the peaceful family life. No greed or mismanagement should not come in place.

We all are creating wealth, one day, that should move it to our next generation. A smooth handover is our responsibility ! Same time, protect your own retirement life.

Happy money life !

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