- Personal Finance
Effective tips to multiply your money
‘ The lack of money is the root of all evil.’ Mark Twain
Financial success is something you crave for in life. You can enjoy the good things in life only when you have money. Achieving financial affluence is not a single day’s work, but needs meticulous planning on your part to make use of your hard earned money in an intelligent way so that they multiply. If you keep your mind tuned to the financial trends and discuss it with your friends you get a view of the true way to mint money.
1. Savings should your first spending when you receive your salary. At least twenty five percent of your income should be allotted for savings.
2. Avoid unnecessary spending .Dining out in classy restaurants is a very costly affair. If you cut down on eating out, you will be amazed by the money you will be able to save.
3. Do not go shopping just to while away your time, as you end up buying things that are not exactly essential. You should spend money only on necessary things and you will save lots of money if you stick to this habit.
4. Do not be too fashion conscious as it will make you purchase clothes endlessly to keep in touch with the latest fashion. You should dress tastefully, within your budget, and you should not be focused on fashion but on enhancing your appearance with apt dresses.
5. Do not let you money lie idle in the bank as the interest rates in banks are somewhat less. You should diversify your money in various sources, so that they branch out to give you good returns.
6. If you plan to invest in stocks, you should be very careful while buying them. Keep an eagle eye on the uncertain swings of the stock market and invest with utmost diligence. While investing in stocks, do not invest all your money in one company. You can minimize the risk of losing money by investing in stocks of different companies. Even if one lets you down, the other might take you through.
7. Make fixed deposits for a long term and when the deposit matures reinvest the money as another fixed deposit. If you start this when you are young, you will accrue heaps of money before your retire.
8. Real estate in another goldmine. Lands bought in some far off places have now become a busy area and are giving returns of high magnitude to those who invested their money in it. It is advisable if you spend part of your income in buying lands in some outer area and as the years pass by, these areas might become a pricey possession.
9. Do not use credit cards for your shopping, as you tend to get carried away by the false illusion of having money than what you really have. When you spend more than you can afford, you are miserable for years, clearing debts.
10. Do not borrow money as the interest to be paid makes a dent in your monthly budget. If you plan your finance properly, you need not borrow money. Not borrowing money is another form of saving.
As you can see, it is the way you spend your money that decides your wealth. If you are judicious in your spending, you can save lots of money. But this is not enough. You should be clever and adept to invest your money in proper channels to make it grow in multiples.