Monday, February 3, 2014



» Don’t save what is left after spending – Spend what is left after saving – Consider, setting aside money for savings as absolutely mandatory no matter what.
» Develop healthy spending habit – Don’t need to keep up with the Jones – Resist the urge and be frugal.
• Do you have the urge to keep upgrading your mobile phone or car or clothes?
• It is not price inflation that affects people, it is lifestyle inflation that urges people to spend.

» If you buy things you do not need, you will soon be selling things you do need.
• Every penny saved is a penny earned. If you take care of the pennies, the dollars will take care of themselves.
• Include your spouse and the children to contribute to the family’s bottom-line.  For example, your spouse may agree to pack you lunch which would save money from buying lunch outside.  You may take public transport to work twice a week instead of taking your vehicle.  The kids may take the responsibility to turn off lights and fans, and a/c at home or cut down one family dinner out.

» Someone is sitting in under the shade today because someone planted a tree a long time ago.
• Most of the times, our children would enjoy the benefits of our saving just as we are enjoying the investments that our parents made for us.

» Knowing when to get out of a bad investment is as important as knowing when get into a good investment.
• Don’t throw the good money after the bad.
• Believe that you cannot make money on every investment.  That is the way it is.

» Investment is a marathon – It takes long years of disciplined investments to see sizable results.

» Keep reading on various money related articles – When you get sick, you ask the doctor a lot of questions. Similarly, you need to ask a lot of questions and for that, you need to read a lot. Don’t leave the investment responsibility to your agent or broker.

» Protect against catastrophes that can wipe out your savings. For example, make sure your home, and belongings are protected with proper insurance. Make sure you have ample health insurance for yourself and for all the family members that you are responsible for. Make sure the earning members of the family have term life insurance and disability insurance.

» Why pay taxes if you can legally put money into tax saving investments? Tax planning is a very important port of savings.