The Truth About Money Management
Managing Your Money
Money management isn’t just about sticking to a budget - it’s also about investing, creating wealth, and over time, being able to supplement your income with it. Here’s what you need to know.
Set a clear budget for the month - you should know how much your outgoing is when it comes to rent, bills, groceries and other expenses - and aim to save at least 20% of your take-home.
Set Clear Goals
What are you saving for? Know what you want and the time frame required. Making impulsive investments without understanding the long-term impact can have adverse effects.
There are hundreds of investment options, and it can be daunting to choose one. But letting your money sit idle when you could be growing it via investments doesn’t help.
You must have an emergency fund you can dip into if a challenging situation strikes. You need to build this fund first and make sure it’s easily accessible should you need it.
Mistakes Will Happen
People are wary of investing because they think they’ll make a mistake and lose money. Yes, mistakes will happen - but as long as you are able to learn from them, it’s OK.
Don’t let your search for the best investment lead to inaction. So, even if it’s a small amount, just get started.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.