"Paisa... aisa kaisa paisa.... saari khushi paisa....."
This song really lives up to the trend of money making. The indian youth today... that surely includes me... love to earn a fast buck or two.... as they say Money may not buy you happiness... but it surely buys you enough resources so that you can be happy... and it does make the world go round....
So starting today.. I am gonna write atleast two posts on how we guys should be using the money that we earn... the reason being that most of the readers that come buy here are the young guns who have recently started earning by working their ass off.
21 Money Tips:
1. Never lose control over your assets as long as you live. Think thrice before you give a power of attorney , or write property away even to your near n dear ones.
With the increasing number of Ekta Kapoor soaps, showcasing every one fighting for money... keep this one surely in mind. Relationships change over time... and money makes em change even faster.
2. Write a will anyway. The moment you guys decide to settle down finally... do this.... a will will make sure that your kids dont land up in court fighting over the property you earned...
3. Share all the financial information with your spouse as well... encourage her to take charge .. after all she is your better half... the investments on her name might just get great gains for you.
4. Money is safest in the public sector bank... remember.. the IDBI bank thingy that happened a few years back... make sure that your savings are actually safe...
5. Keep a track of your credit card statements and bank accounts. Don't go by the bank statements alone... try n verify each of youyr transactions... Ok this seems a lot of work... but it truely helps. I know of a guy, who kept a record of all his phone calls and the minutes etc... and was able to get a reimbursement wen he was overcharged in a bill. A lil effort now will reap great results.
6. Next time, when you buy jwellery... please check for the Bureau of Indian Standard(BIS) hallmark. It'll assure of the quality of the gold that you are buying...and when you change it... it'll fetch you better price...
7. Buying Gold...to invest in gold... well.. that is certainly passe... now buy into gold exchange traded fund(ETF) instead. Therefore... no more worries about storing away all that gold n keeping it safe from the theifs n robbers... the best part though is there is no wealth tax or long-term capital gain tax...
8. Don't fall for very high interest rates when you take a fixed deposit....higher the rate of interest...greater will be your chance of losing your money... Post office term deposits are the safest..
9. save upto 2.5% commission if you bought mutual funds directly from the fund's office instaed of buying from a broker...
10. Using your internet for buying and selling shares actaully does you good... coz its cheaper.. and faster...and you are in control...
11. IPO... scary word after the Anil Ambani's disasterous power issues.. well they arent always good or safe... patience..is truely a virtue when it comes to stock market... you may be offered better price there.
12. You may voluntarily contribute any amout from your salary to your comapny's EPF. You'll have more tax free money when you retire...
13.Try n not withdaraw money from your EPF...its for living in that countryside cottage when you retire... transfer the balance to your new employer...
14. Save tax by reading... yup read about the various tax deductions... treatment of disabled parents, special tax concessions for senior citizens..and donation to charities are a few for which tax deductions are valid..and we overlook.
15. Debit cards that dont require a PIN for shopping are very unsafe...
16. If your credit card gets lost...or is used fraudulently...refuse to pay up for somebody else..and contest such charges... to use your credit card fraudulently.. nothing much is required just your name... spl no on the back... card number which is mostly on the merchant copy and the expiry date. B very careful when you use a credit card. Merchants are usually not in a habit of comapring signatures on the card n reciept... So much so.. the same logos offer 'zero liability' in case of fraud..even if you arent able to report the loss.. but abroad... In India you are not being offered that coz..you are not standing up to this discrimination.
17.Does your card also offer insurance...? Accident insurance etc are often offered by credit cards... they are not claimed..because you are not aware of em... make a note of this next time you sign up for a credit card.
18.Zero Interest loan.. loks so freakin attractive... but its not so... you get no discount at all.. as a matter of fact you pay things like processing fees, delivery charges and service tax. You end up paying more...
19. Thiefs..are everywhere.. even your demat account is not that safe... your shares can be stolen from your demat account..so keep a check on that... and if you are palnning to hold on to em.. then get them frozen against any debit.
20.Own shares that pay dividend... good growth strategy is to reinvest all dividents back into more shares...if its mutual funds, choose a dividend reinvestment plan... its pays well...
21. A great habit is too invest regularly...a systematic investment plan in equities work on "rupee cost averaging" but they dont always give you gains...as claimed... but nevertheless.. they make u invest regularly...
These tips have been picked up from this month's Readers' Digest issue... but I dont think that anyone minds that fact.. everyone wants to be wiser on the account of money... I swear by rule number 20.. I have two such investments done... and I think that... its a great way...to reinvest without taking too much of load...
If any of you have ne more ideas..on how to be wise with your money.... please share it with us... we are young...ready to earn....and save up...maybe...
Cheers....
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