Money management is managing your wealth or finances in ways that keep your finances flexible and your family future-ready. It is the just the opposite of paycheque to paycheque living.
Money management is all about financial discipline. It’s not acquired or inherited but developed over time with experience. Having good money management skills can help you sail through difficult situations without much difficulty. Effective management can help you live a financially stress-free life.
Let’s understand the basic differences between the two with a few examples. These plausible scenarios give us insights into how either individual would tackle these situations.
Here are a few reasons why managing money is important:
Now that we know what money management is and why it is important, let’s look at how to manage your money.
Here are a few money management tips that you should factor in:
Money Management in India need not be done on your own. There are numerous resources present online on the internet that can assist you when you travel.
The most common and resourceful is budgeting software. These will help you set goals for your expenses. They will also help you track the inflow and outflow of your income. There are ample applications that can help you to manage your finances and your money.
The market is rife with software that helps you in investment. Everything is available now at the tip of your fingers, from mutual funds to insurances to cryptocurrency.
Here are a few things to remember for effective money management:
Money management can be a very rewarding process. A few restraints on your end at the beginning will fruit into rich dividends in the long run. The important thing is, it’s not difficult. Anyone who desires to secure their financial future can take this principled approach.
Ans: This is a very common myth. The most math you will be required to do is simple addition and subtraction. And whenever it gets slightly more complicated, you can take the help of myriad apps that make the process easy.
Ans: Absolutely not. The adage goes – you are never too young, and it’s never too late.
Ans: Absolutely not! That isn’t the end goal of financial management. The goal is to manage your money now so you can save up for those expenses without taking an immediate hit to your salary.
Ans: Well, the first step is simply understanding what you want going forward. Do you want to travel the world? Do you want to retire early? Once you’ve decided your goal in mind, make a plan for how you’re going to achieve it.
Disclaimer: Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.
This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information, and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.
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