Basic money managment tips

1. The cheque is the "real" money, not the credit card. Therefore, the cheque amount you receive as salary should determine your spending pattern; not your credit card limit. Utilise your card to the limit that you can comfortably settle at the end of the month.

2. Contrary to popular perception, cars, televisions and phones are NOT assets. They are liabilities, because they depreciate and because you need money to use and maintain them. So don't accumulate too many "fake" assets.

3. For greater transparency, flexibility, liquidity, simplicity, convenience and better returns, do not mix insurance and investments. Avoid policies that combine investment with insurance.

4. Borrowing means spending tomorrow’s unearned (and possibly uncertain) income today. So be very careful. If you have to borrow, borrow for the "right purpose", the "right amount" and at the "right cost".

5. Start early, invest regularly and stay invested. Time makes money. Fixed deposits, stocks, mutual funds, property, gold, and other such assets, are merely the tools that time employs to make money for you.

Rest of the article ,

This post has been written by Sanjay Matai, a financial adviser and author. This is the advice he penned down for his son when he got his first job and first pay cheque. 

1 comment:

suman said...

All the points are important. But I want to emphasize point no 3 & 5 which are not known to many youngsstars. Please take care of those two points from your first income.


Simple Indian Food - Feel @home ( Best veg food blog )

" A Ship is safe when it is in Harbour, but the ship was not built for that"


These are just opinions/ ideas exchanged. No one can claim us responsible for any investment failures /losses based on the ideas expressed here.

Feel free to mail your queries/ comments to