Friday, January 29, 2010

What are the five easy steps to avoid financial stress?

1) Try to determine how much is your exact income periodically say month quarter or yearly.Of course it is easy to determine your exact income monthly if you earn salary from employment.

2)Try to estimate your monthly (or regular interval) expenses.Then try to spend less than your income.In short budget your income - expenditure.This estimate can be arrived at after monitoring your income expenses for a period of 6 months or 1 year.

3) Try to segregate expenses in to regular expenses rent,electricity.telephone etc or one time expenses like spending for a function buying a consumer durable like Fridge / TV / Two Wheeler / car etc.

4)Out of income you are expecting to receive regularly first allocate to regular expenses & save some portion of income for future one time expenses.

5) Invest regularly in RD / FD / mutual fund etc which earns some return in form of Interest dividend etc.Fix a target period for investing & after the the investment matures you can utilize for purchasing durables like fridge / tv / car / house etc.

No comments: