1.Always try to balance your earnings with your savings first, then on spending and loans. Never take unnecessary loans. Always have reserve and utilise them and unless no other go never take loan.
2. Always have a plan for future events on your career, life, spending and finance.
3.Start a SIP at a very young age. Try to save atleast 15–25 % of your earnings.Understand the Power of Compounding. Start investing early.
4. Avoid buying a car unless you use it everyday.
5.Always have a reserve on your savings for contingency and urgent situations.
6. Your personal life and health are the most important investment. Do have a regular health check and do healthy workout every day. Stay healthy and live happily.
7.Invest on yourself and then on other investments.
8.Define your financial goals in terms of amount needed and time required to achieve the goals.
9.Keeping money in bank as FD is not safe!Inflation eats your interests.
10. Start early when it comes to investment.
11.Try having a simple wedding.
12. Atleast 20% of your wealth should be liquid so you can utilize it when necessary.
13. Do not let this sentence scare you. “Mutual fund investment are subject to market risk. Please read the offer documents carefully before investing”. Most people avoid investing in mutual funds just because of this one warning. Yes, there is a market risk, but look at the history and growth of mutual funds.
14.Never invest in insurance for returns. Insurance is not an investment option. It is a risk management tool.
15. Never use credit cards for lavish spending. Use credit cards intelligently and for needs not for wants.I feel so comfortable & joyful without thinking of paying credit card bills on every month.
16. Considering inflation, you are actually losing money if it is in savings bank account. Do not keep huge money in savings bank account.
17. Know the difference between NEED & WANT. It’s better as early as you know about it.
18.If you invest in stocks, pay due attention. and have a separate account for delivery investment and Intraday investment. It is easy to monitor this way and also makes tax calculation easy.Taking no risk is always risk. If you try something, there is chance of winning 50 %. If you do not try, you lose 100 % for sure.
19.In rented house, you pay rent to owner. In apartment, you pay double / triple the amount of rent to Bank in the form of EMI!.
20. Learn extra skills that makes you to earn more. Anything you like – Teaching, Selling stuffs, Blogging, Yoga etc.
21. Teach your kids about money management.Generally schools won’t teach about it.
22.User offers/coupon /cash back options when you need to buy something. ( But don’t buy anything since offer/cash back or coupon is there :))
23.Every month donate 5% of your income to some children home/spiritual service. Once you get your pay cheque, this should be the first work to do.
24.Save at least 10% of your income definitely for 5 years without any gap. And re-invest or spend for some useful expenses.
25.Buy assets not liabilities ( unnecessary loans, use of credit cards).
26.Do not pay more than 30% of your earnings on rents.
27.Save atleast 20% of your salary and increase it after every increment.
28. Keep track of your income streams ( from where your income is coming and where it is going).
Keep it really simple. Never invest if you do not understand it. Remember, everyone is out to sell you something. Mistrust until you understand how it works.