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  • Category: Miscellaneous

    How do you tackle your personal finance?

    Every one of us earns money to live a life. Maybe from salary or from business income. When it comes to financing, each one of us maintains a budget or personal finance system for tracking the expenses/savings/investment. Do you believe in saving or maintaining the expense list? For me, I have created an excel sheet with expenses listed in one column, the date, and the amount spent in different columns. How do you track your finance? Are you using any application or software in an online mode or maintaining it in a notebook (offline)? Can you share your views on this topic? How does it help us in achieving our goals with this kind of tracking of expenses and income?
  • #753890
    We all should plan our expenditure in such a way that we spend less than what we earn. If we start spending by taking loans we will be left with paying huge interests always. So we should not go for any loan. The general tendency is this is what we get and this is what we spend and the remaining is the savings. But it should not be the case. We should start thinking that, this is my income, this is my savings and hence left with this much to spend and that only we should spend. Then only there will be disciplined in our financial matters.
    I used to maintain an account of my income and expenses, We maintained it physically in a notebook. For many years we did that. But later on, we stopped writing. But it is not correct to stop maintaining the accounts. Otherwise, we will not have any clue about our spending. In earlier days we used to go to the bank and get some cash and spend it. But now we do online transactions and hence making a note of expenses is very essential.

    drrao
    always confident

  • #753892
    I have the habit of writing the income and expenses on daily basis and maintain the diary of the happenings. Though the income is fixed and won't increase, the expenses are raising and new expenses also happens. For example birthday celebrations in family members, relative, marriages, functions and other expenses and apart from it, the festivities expenses which cannot be avoided. To mention in February there was hectic expenses for me. My mother and father death anniversaries or Shraadh expenses which worked out to 9000 each and then my niece marriage, the travel expenses, then the at home function to welcome the new bride and groom. All these are not envisaged and happened in series and thus we had to have lots of austerity measure, and anyhow we curtailed big expenses and made provision for those.
    K Mohan
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #753916
    There are many computer applications and financial methods to keep a tab on expenses and earnings. These applications help us to know where we stand and what is our total expenditure vis-a-vis our earnings and are a good check to understand if there is a need to control our expenses at any time of the month or year. Many people use these applications and feel good that they can see their status at any point in time.

    Coming to the savings that a person should make, there a general rule of thumb that one should save at least 40% of one's earnings for a rainy day or for future activities. If one can maintain this balance in one's life then everything becomes easier to follow. Problems in our lives only come when we spend more than our earnings and start taking loans to meet our unending requirements.

    Knowledge is power.


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