By admin at 22 September, 2009, 7:02 pm
Earn well, spend less
Spend less than your earn. Save a portion of what you earn. Boost income, rein in spending and maximize savings. Follow the rule of three and you will be set up for life.
Spend only 30 percent of what you earn
Loans should not exceed 30 percent of your income
Save and invest 30 per cent of your salary
Invest in yourself
Your greatest financial asset is you or rather your caree [...]
Earn well, spend less
Spend less than your earn. Save a portion of what you earn. Boost income, rein in spending and maximize savings. Follow the rule of three and you will be set up for life.
- Spend only 30 percent of what you earn
- Loans should not exceed 30 percent of your income
- Save and invest 30 per cent of your salary
Invest in yourself
Your greatest financial asset is you or rather your career. Make the most of it, seek new opportunities, take up challenging assignments, earn another degree and upgrade your skills. This will have the maximum payoff over your entire professional career.
Protect what you have
Safeguard your life and assets. Cover yourself against all forms of risk; get adequate insurance, life and health. Consolidate holdings and organize investments. Make sure you have nominees for each account and investment. Don’t leave any loose ends.
Get rid of credit card debt
Retiring your credit card is the best savings decision you can make. Credit card charges vary from 36 to 48 per cent per annum. No investment can earn such a spectacular return over a comparative period. Pay off your credit card debt today. A rupee saved is a rupee earned and you’ll end up earning a lot of money.
Invest in diversified instruments
The trade off is not between safe or risky investment but sustainable long-term growth instruments that can beat inflation and taxes. Regular investment, length of time and the magic of compounding make for a winning formula.
Save for retirement
Start saving early and investing regularly to get a head start in life. Even if you are able to invest a small amount regularly, it will add up to a whole lot over a period of time. Remember the line from Rich Dad, Poor Dad, “The middle class works for money while the rich make money work for them.“ Make your investments work for you.
Never has life looked so promising yet so complex. You exist today and hope to find the time to live a full life tomorrow. Find a little joy in the now. Take each day and live for the moment. Plan for tomorrow but don’t forget today. There are no happy endings, only happy beginnings.
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