Financial Security

What makes a person secure about something? As security expert Bruce Schneier states, “Security is both a feeling and a reality.” The belief of not having enough is what makes one insecure. It is important to cater to the internal and external reasons for insecurity and then work towards the awareness of releasing yourself from the pattern or mental block

Let us see what gives us external financial security

Steady income. This is the foremost factor that makes one feel secure. If you have a steady income, your lifestyle expenses and the running costs are taken care of

No Debt. The lesser the debt, the lesser the stress. Clearing present debts gives a sense of empowerment. Credit card debts are a strict NO-NO Mortgages increase the pressure and hamper one’s mental health

Insurance. Life, health and so on. Accidents can and do happen, and if one is adequately insured, he is saved from financial ruin. Insurance provides protection to the assets built by your hard earned money

Emergency savings and Investments. This is a safety net for urgent or unforeseen expenses or more serious ones like illness or unemployment

Homeownership. Is probably the biggest financial and emotional decision of a person’s life. It gives a person a sense of pride and security

When all these are achieved one gets a sense of financial security. Now the question is how does one attain these goals With a basic understanding of saving, budgeting and investing, the probability of a solid financial future increase

Act and Earn

Financial security can be increased by financial literacy
Extra income never harmed anyone. Have an additional stream of income apart from the regular, steady source for the unforeseen events that lie ahead

Plan a budget and stick to it

Plan a practical budget. Consider all your expenses including rent, utilities, food, tuition fees, transportation and any other miscellaneous expenses. If after all this you are in the negative, you need to trim your budget. If in the positive, its time to save.

Think before you spend

Like time, spending money also expands to one’s income. Prioritize your expenses. Spend less than you earn. Dispensible expenses can be cut and the same finances used to find the bigger dreams in life. This will need some self-control but will reap high benefits in the future. Live simply today to have a comfortable tomorrow

Save

Saving will help improve net worth. Have a portion of the income automatically go into term deposits or other investments, compulsive savings is the only way one can get into the habit of saving. Spend what is left after saving. Have daily, monthly and annual goals for savings. One very important thing to remember while investing is ‘Do not put all your eggs in the same basket’ so you have a backup that you can bank on. Choose something to save for, a house, your child’s education or your retirement.

Be Debtfree

Take loans as far as possible only for the most important assets, home, education loan. Pay bills on time, it not only saves you from paying penalties but also gives you a good credit score. Never borrow money to support your lifestyle

Protect your assets

Risk management is an important aspect of protection of assets. Protect yourself, get a health insurance; and life insurance to protect your family

No Procrastination, no waiting for a magic solution. Pull up your socks and start working towards a financially secure future!!

By NSS

20thJan2018

Simple Money Saving Tips For Students

Penny saved is Penny earned, how often do our parents quote Benjamin Franklin. This quote teaches us life’s important lessons of self-control and discretion so we can save and spend the money well on the right things at the right time.

Here are a few tips on how as students, you can not only make do with the tight budget but also save money to spend it well on that dream you secretly guard.

*Plan your budget and stay focused. Know your recurring expenses and keep some amount aside for the accidental expenses that you might encounter.

*Pay bills on time or even before the due date to avoid late fees and get early bird discounts

*Buy grocery from the supermarket that offers maximum discounts, plan your visit to the supermarket so that you have a list ready to avoid impulsive buying. Negotiate and haggle on purchases that permit it

*Make sure you have no dues on your credit cards, lest you waste your money paying unwanted interests. This will even help you have a better credit score for future loans and purchases

*As far as possible use Public Transport or carpooling or a two-wheeler pooling to save on fuel. Short distances can be walked to or cycled to, thus saving your Gym membership expenses as well.

*Join a local library so you can borrow the books you like to read. Buy used textbooks or reference books, they would be cheaper and often have the important stuff highlighted 😉 and tips written on the corners of the books that turn out to be more helpful than the material in the textbook itself. Photocopying a reference book also can be done.

* Say NO to tempting and expensive brands. Brands are for the future you, not the present you.

*Party at home rather than in extravagant places. Where ever possible, encash on student discounts or bulk discounts, like a food joint or lounge. Also, there are weekdays when these places allow free entry to students, party on those free days.

*Kick the butt, stay away from vices that leave you in debt.

*Try earning scholarships for various courses

*Use WiFi where ever possible, make sure you have a pre-paid data plan so you do not overindulge

*Plan your travel well in advance to get cheaper deals

Now that we have gone through tips on saving money, here are a few on how to get the extra income*Coach other students on academics or any form of art like playing a musical instrument or a dance form or a sport which helps you make the extra bucks

*If something is not useful to you anymore, try selling it to someone who can find a use for it personally on various websites available thus making the extra pocket money

*Working at the local coffee shop is also an option that can be considered.

With power packed determination and dedication “Mission Savings”
here we come!!!