Let us try and answer the below questions:
How do you make your investment?
How many of your investment are thoroughly based on proper study and planning?
Let me put the questions in a bit different way
Are your investment based on tax savings or on advise of your friends or colleagues?
70% of the people reading this will answer in affirmative. This is where we go wrong.
We either overhear someone saying or our friend telling us ‘buy shares of Company X, it will go up in next 2 months’. What do you do without thinking, reading or doing a basic study end up buying that share/stock; Don’t we?
Similarly, salaried people usually get a call from various investment and insurance companies with schemes that can help you save tax. Ever observed the number of these calls increase during March or December, when you have to either submit your investment plans or investment proofs. Majority of people fall prey to these calls and end up buying insurance contracts which have high premium, but do not suit your requirements.
Why do we work daily for so many years?
You will say that you enjoy working, good but; everyone goes to work for their livelihood, because we want to earn and generate wealth over long term. All of us want to create a fortune over the period of our work life; go on vacations enjoy with family and retire rich. Don’t we dream of this?
We devote 100% of our time to work and not even 1% on the motive; why we are working i.e. accumulating fortune so we can retire rich. I have seen people who work all their life religiously, dedicatedly and earn also well, but when they retire they realize there is not much enough they have saved to fall back on.
Is there any use of your working for so many years, and after all we work for money, and if we can’t manage that money or don’t take some serious time to manage it, I personally consider it as waste.
One needs to understand how to manage money and plan your investments properly. For that one needs to have a basic knowledge of principles of money management.
In this book we will try and cover some of the basic principles of money management, some of the common mistakes we make in investing our money and how we can make the best use of our money to secure our future.
By managing money i.e. your personal finance you will be able to get more out of every rupee that you earn regardless of your income and your lifestyle. Managing personal finance involves two basic things setting your goals and working towards them.
Money Management: Meaning[/b]
Money management is the process of managing money which includes investment, budgeting, banking and taxes. It is also called investment management
It is the process of knowing where you are spending your money the most, from where are you investing and the returns of your investment.
Investopedia defines Money Management as:[/b]
The process of budgeting, saving, investing, spending or otherwise in overseeing the cash usage of an individual or group. The predominant use of the phrase in financial markets is that of an investment professional making investment decisions for large pools of funds, such as mutual funds or pension plans.
By
Mubina Munshi
http://gyandoz.blog.com/
How do you make your investment?
How many of your investment are thoroughly based on proper study and planning?
Let me put the questions in a bit different way
Are your investment based on tax savings or on advise of your friends or colleagues?
70% of the people reading this will answer in affirmative. This is where we go wrong.
We either overhear someone saying or our friend telling us ‘buy shares of Company X, it will go up in next 2 months’. What do you do without thinking, reading or doing a basic study end up buying that share/stock; Don’t we?
Similarly, salaried people usually get a call from various investment and insurance companies with schemes that can help you save tax. Ever observed the number of these calls increase during March or December, when you have to either submit your investment plans or investment proofs. Majority of people fall prey to these calls and end up buying insurance contracts which have high premium, but do not suit your requirements.
Why do we work daily for so many years?
You will say that you enjoy working, good but; everyone goes to work for their livelihood, because we want to earn and generate wealth over long term. All of us want to create a fortune over the period of our work life; go on vacations enjoy with family and retire rich. Don’t we dream of this?
We devote 100% of our time to work and not even 1% on the motive; why we are working i.e. accumulating fortune so we can retire rich. I have seen people who work all their life religiously, dedicatedly and earn also well, but when they retire they realize there is not much enough they have saved to fall back on.
Is there any use of your working for so many years, and after all we work for money, and if we can’t manage that money or don’t take some serious time to manage it, I personally consider it as waste.
One needs to understand how to manage money and plan your investments properly. For that one needs to have a basic knowledge of principles of money management.
In this book we will try and cover some of the basic principles of money management, some of the common mistakes we make in investing our money and how we can make the best use of our money to secure our future.
By managing money i.e. your personal finance you will be able to get more out of every rupee that you earn regardless of your income and your lifestyle. Managing personal finance involves two basic things setting your goals and working towards them.
Money Management: Meaning[/b]
Money management is the process of managing money which includes investment, budgeting, banking and taxes. It is also called investment management
It is the process of knowing where you are spending your money the most, from where are you investing and the returns of your investment.
Investopedia defines Money Management as:[/b]
The process of budgeting, saving, investing, spending or otherwise in overseeing the cash usage of an individual or group. The predominant use of the phrase in financial markets is that of an investment professional making investment decisions for large pools of funds, such as mutual funds or pension plans.
By
Mubina Munshi
http://gyandoz.blog.com/