Financial Management tips

If you’re finding yourself stressed about money, the following steps can lead you to a greater sense of peace.

• Get organized: Gather all important financially-related documents to a central location that is equally accessible.
• Track your spending and pay yourself first: Write down where you are spending your money.  Re-route some of your spending to a savings account: pay yourself first for a secure financial future.
• Plan to save: Start a savings account to cover expenses like clothes, holidays, and insurance.  Plan for future expenses throughout the year. Have retirement planning.
• Build an emergency fund: You never know when you will need additional cash so try to have two to three months of living expenses in a readily accessible savings account or money market account.
• Don’t Go Into Debt, and if you are, Get out of debt: Avoid Credit CARDS.  If you must use them, control your credit card spending and try to pay off any debts you have (e.g., car, credit card, student loan, etc.).  Pay more than the minimum monthly payment.  Once you have paid off your debts/credit cards, take the money and put it towards savings or some other debt.  If possible, the goal is to simultaneously pay off your debt while still putting some amount into savings.  Remember, you are loaned money so that you will pay interest and late charges and make other people money.
• Set goals: Decide what you want to do with your money.  Do you want to pay off debts/student loans/Buy a house/Save for a new car or additional education.  Write down your goals and your strategy for achieving these goals.  Write a budget.
• Review your insurance coverage: Every year, review your health, life, disability, renter/homeowners, auto, and personal liability policies to make sure you are both adequately covered. To learn more about insurance go to the National Association of Insurance commissioners Insure U web page.
• How much should you save and/or invest? Save at least 15% of every dime you earn beginning with your first job.  The older you are the higher the percentage has to go unless you think you can work forever?

SOME MORE TIPS:

• Get Paid What You're Worth and Spend Less Than You Earn
• Stick to a Budget
• Have a Savings Plan
• Invest
• Keep Good Records.

Top Saving Mistakes

• Not modifying your spending habits and committing to save money.
• Not appropriately/correctly allocating your assets to meet a specific goal or time horizon (diversification is important).
• Not setting a specific RUPEES target or financial goal.
• Not knowing how much you have, where you are spending your money, and how much you need to save for the future (failure to plan for retirement).
• Cashing out your retirement plan

What is Financial Literacy

Financial Literacy:The ability to effectively evaluate and manage one’s finances in order to make prudent decisions toward reaching life’s goals

The understanding of:

• Money
• Cash flow
• Basic economic/financial concepts
• Debt/risk management.

Achieving financial literacy: Five Key Areas of Personal Finance:

• Money and income
• Money management
• Spending and debt
• Savings and investments
• Risk management

Money and income:Its important to take care of the following:

• Time is money
• Money management
• Budgeting
• Prioritizing

Stress due to Finance

The proportion of people stressed about money is only going up. While money is a relatively common cause of stress and marital tension, the serious global economic downturn we’re currently seeing has many people concerned about losing their home or their savings -- or both!

This kind of stress can result in many problems, including health, relationship and career problems. Stress is intricately linked to ill-health and statistics show that up to 90% of all visits to the doctor are for stressrelated ailments and complaints.

Statistics show that almost 40% of relationships break-ups are a result of financial difficulty. Are you under financial stress? Financial difficulties are categorised in the highest category of stress along with death of a family member, divorce and moving, and is described as severe, chronic, long-term stress.

This kind of stress can result in many problems, including health, relationship and career problems. Stress is intricately linked to ill-health and statistics show that up to 90% of all visits to the doctor are for stressrelated ailments and complaints.

What is Finance?
The general areas of finance are business finance, personal finance, and public finance. Finance includes saving money and often includes lending money.

Importance of Finance Literacy.

Knowing What You Need To Know To Achieve Your Financial Goals

What is Financial Health?

It is a description of the state of a person or company's finances. Someone with good financial health usually deals well with their finances, makes their payments on time, and knows how to manage their money. Someone in poor financial health usually owes a lot of money and isn't making their payments on time.

What is Financial Planning?
Financial Planning is the process of meeting your life goals through the proper management of your finances. It involves the process of assessing your financial situation, determining your objectives and formulating a plan to achieve them.

What is Debt?
 Borrowing money from others for interest. Definition of debt: Debt is a form of loan issued to the indovidual/organisation/company by public or the bank.An amount owed to another party.An obligation resulting from borrowing money.

What is Debt Management Plan
A Debt Management Plan (DMP) is a repayment scheme which helps make unsecured debt repayments more affordable. ...In debt management the counselors offer confidential debt management advice designed to help you with unfinancial situation.  This is will help you get back on your feet.  Your expenses should never be more than your income.  Good debt management, you will find yourself enjoying more financial freedom.

What is credit?    It is a source of provision.
 Definition of Credit:  Credit is the provision of resources (such as granting a loan) by one party to another party where that second party does not reimburse the first party immediately, thereby generating a debt, and instead arranges either to repay or return those resources.

THE STRESS CAUSED BY FINANCE IMPROPER FINACE PLANNING CAUSES FINANCIAL STRESS..