Moneywise Be Wise

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Moneywise Be Wise
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Smart investing is the key to financial
happiness. It helps you multiply your money. Sav
ing is not about saving extra money. It is about
planning your expenses in a manner that lets you
save enough money no matter what you earn for a
safe future. But handling money is not very easy.
So here are 11 tips on what you must not do with
your hard earned money.
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Do you rush to the ATM and withdraw money
regularly Well you cannot afford to be careles
s about withdrawals. While a savings bank account
helps you meet your regular needs it is
important not to deposit all your earnings in the
savings account. While you must keep a portion of
the salary in the savings account make sure you
allocate enough money for regular expenses as
well as additional expenses that you may need to
meet unexpectedly. Excess money in savings
account will always also tempt you to spend more
money than you should ideally spend.
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Dont manage money without a good plan.
A golden rule in investing is to have a good
financial plan. Do not invest money only on the
basis of what your friends or relatives say. You
must identify your priorities and set realistic
goals. Calculate your monthly expenses and see h
ow much you can save every month. Make a list of
things you can and cannot avoid. Learn to
strictly stick to you plans.
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Dont invest all your money in the same plan.
No matter which investment plan you choose you
must not invest all your money in just one plan
or in one bank. It is very important to diversif
y your investment. Remember interest rates and
services charges vary from one bank to the other.
Before you invest money in any scheme call up
banks financial service companies and make sure
you get the best deal.
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Dont set high savings targets.
You must not go overboard on savings. There is no
point in saving all your money and being sad
about not having enough for your needs If you
have a family you must take care of their needs
as well before you start investing. Set a target
accordingly. But you should allocate a fixed
amount every month. The more you can save the
better
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Dont lose your focus on savings.
You may have invested your money across various
investment options. Dont think that your job is
over. In fact you must keep a watch on interest
rate changes and market fluctuations If it is
stocks you have invested in check out how the
companies are performing read up be alert. You
have to be proactive to the changes and be
actively involved to make your money grow
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Dont splurge more just because you got a hike.
Most people have a habit of spending more and
changing their lifestyle when they get a good
hike or bonus. There is no harm in enjoying and
have a good time. However if you would like to
save money you must invest the additional amount
to add to your savings . You must always think ab
out the long-term benefits
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Beware of credit cards. Easy availability of cred
it cards has provided a major boost to spending.
A credit card gives you access to high spending
limits also it liberates you of the worry about
handling cash. But credit cards have their
downsides as well. For example making the
minimum payment due could get you entangled in
a debt trap and force you to make interest
payments at obscenely high rates
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Spend in line with a budget. Remember the longsta
nding method of making a budget and then spending
in line with the same. That is still the right
way to go about spending. Having a clearly
laid-out budget will help you prioritize your
spending. Only when the high priority needs have
been taken care of should the balance funds be
used for other expenses
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Dont go for too many loans at the same time.
It is very easy to get a loan nowadays. Loans are
available just by sending an SMS. But beware of
easy loans! Your may want to own a car a home or
some other luxury but ideally you must not go
for too many loans at the same time.
Buy things one at a time so that you have enough
money for yourself and to save and you are not
too indebted.
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Dont join any scheme without verifying the
credentials. There have been several cases of fra
ud where innocent investors have been cheated by
crooks posing as smart investors or advisors.
They may lure you with all kinds of schemes of
getting higher returns at the shortest possible
time. Always cross-check facts and figures and
their credentials before you invest in any plan.
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Dont invest your money in risky plans.
While it is important not to keep stacking your
money in a savings account it is not important
not to indulge in risky investment plans. You
must start saving with smaller amounts and try to
save more as you go along. To start with you mu
st seek the advice of a good financial planner or
choose low-risk plans. Remember slow and steady
wins the race!
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Dont forget the dates plans.
Make sure you keep a diary of all the saving
plans their maturity dates and remember to
either reinvest the money or go ahead with any
plan that you have in mind when the plan matures
All the papers must be safely kept in either a b
ank locker or any safe place. You must also keep
a photocopy of all the important papers incase
you lose the original will be useful