Thursday, 28 May 2009

WANTING more out of life is a natural urge. Today, opportunities come knocking on all doors almost every day. With the explosion in the media, the world has become a smaller globe than ever before and people are networking so fast that within a foreseeable future, there could be a ‘world culture’ which impacts the lives people in all countries. Naturally, with life opening a new window each day, you would want to participate in the buzz around and achieve your financial goals early in life. What people wanted to achieve at forty just a few decades ago, is now achievable at twenty-five or even less. Therefore, knowing the art of making and multiplying money is important today. Money, for most people, is of three kinds. A: Inherited, B: Self-earned and C: the interest earned through the investment of both A and B. The numbers of people who inherit large amounts of money or property are still in the minority in India. The huge upwardly mobile middle class depends upon self-earned wealth and its multiplication through a regular study of the money market.
There are some ground rules for managing money, which can help even the smallest earner.
  1. Money is meant for creating a happy lifestyle. So do not save at the cost of necessities like food, education or health.
  2. Remember wealth grows by bits and pieces. Even the world’s richest billionaires have a habit of saving wisely and respecting money. Learn about good investments and do not touch your savings as long as you are earning enough for your needs.
  3. Be organized in handling your money. Track it regularly by keeping elementary accounts and check where you can cut down foolish expenditure. Keep your portfolio well recorded so that your wealth-accumulation rate can be checked at a glance.
  4. Learn to spend wisely. But the best wherever you can afford it. Buy collectibles which will appreciate. Apart form you family’s and personal needs, you will need money to buy a home and to make it a delightful haven of joy for you and your family. Whenever you have dispensable funds, buy things, which give you happiness and sense of achievement. These could be paintings, jewellery, crystal, hi-end crockery, porcelain etc. Make sure that most of these are of a kind, which will appreciate with time or become heirlooms for your children.
  5. Do not be tempted to borrow large sums of money to buy luxuries that you cannot afford or maintain. Keep track of your credit card expenses and your loan repayments. Be aware of the future and provide maintenance funds for everything you won. Unreasonable debt situations are a source of worry and unhappiness.
  6. Be a regular saver. Money saved in money earned is a truism that applies to life even today. Every thousand you earn can earn you more money if you invest it wisely. Every billionaire in the world has said that his journey started by saving the smallest sum and earning interest on it. So wise expenditure and creative saving can multiply even a reasonable amount of money into good personal wealth over a period of time.
  7. Use your earnings to reach milestone goals of your life. Money earned for fulfilling dreams brings not only success, but also happiness.
  8. Don’t live with insatiable greed. Enjoy the possessions you acquire and the lifestyle you design for yourself form your earnings. The fact that an industrialist’s wife or a film star you read about in the society pages of a paper wears priceless solitaires is of no serious concern to you. What concerns you is that you are enjoying a small cluster of diamonds or gold ornaments which you have bought because you wanted them and made them specifically for your enjoyment. Never buy a white elephant you cannot afford. Aim at staying totally in control of your money and its management. Controlling money doesn’t mean only enhancing your income; it also means handling money cleverly.
  9. Never let someone else control your money, not even your own children or spouse unless you are clear why you are doing so. Learn enough to manage your money and only let go of it when you write you will. Share the information about your savings and investments with your spouse if you are in a happy relationship with him/her. This applies to elders and women.
  10. Plan lateral growth. List all your skills and translate the smallest of them into money. Multi-tasking is the order of the future. Look for opportunities to enhance your skills and earnings.
  11. Aspiration and imagination form the key to earning more. Invest your money without pinching your pocket and track your money till you are satisfied that you are getting the best grown rate from it.
Goals of making money; Remember, all goals must be set for the good of all and not selfishly for yourself alone. Goals become more achievable when you invoke a co-operative spirit in the environment and people around. The co-operative spirit in the environment and people around. The jeejeebhoys, the Cowasji, Jehangirs, the jagannath Sunkersetts, the Premchund Roychands, the David Sasoons, the Tatas, the Birlas, the Ambanis and Godrejs like thusands of walthy people around the world, have built business empires and served innumerable social, educational and artistic causes through their funds and efforts. Working for your nation and your community, while earning your personal wealth brings success and happiness to you without doubt.
An interesting story illustrates this point well. A grandfather was in the habit of collecting the seeds of excellent quality mangoes he had eaten. At the end of the summer, he would wrap each seed lovingly with soil and put it in a flimsy cotton bag. When the first rains came, he would throw the seeds from the window of his car or bus as he traveled. Seeing him, his grandson asked him why we was planting seeds when he would never be able to eat the fruit. The grandfather answered, “I have eaten the fruits of trees planted by generations before me. I owe a debt to this land. This is my way of providing fruit for those who will come after me”.