A solution to mismanagement of financial resources
A solution to mismanagement of financial resources
Always make a record of your receipt and expenditure. It is always suggested to make a record of what ever a person is getting and what ever he is spending. He can record that in diary .This can be compared with the expenditures of the previous months. This helps him in analyzing current month's expenditure.
Make less and less use of credit card.the habit of increasing use of credit card can also lead to imbalance in one's buget. The credit card leads to extravagant expenses.This disturbs the budgets of other months.
Try to purchase any durables after making sufficient savings for it.If you are planning to purchase any expensive thing ,then a proper planning should be dne.Atleast 75%money smust have been save then the purchase should be made. If money is borrowed than you should see that your equated monthly installment should noteffect your future budgets.
Entire earnings should not be spended.A good planning should leave some funds from your monthly budgets for savings.Savings should be given priority.One should have a regular habit of savings.
All the savings should be invested as per your requirement.While going for investment ,the funds should be diversified to provde yiou returns.It should provide yoyu tax benefit and sprevent you against the risk.
Most of these ideas are probably not new to you, but if you actually follow a simple plan like this with your person finances, you'll almost certainly be more financially secure and more relaxed in a short time.