Your financial well-being rest on how efficiently you manage your money. One of my cousin, 30 years of age, came to me few days back. He wanted help to get him out from huge debt he has piled up through credit cards. On asking, he narrated how increase in his salary due to frequent job changes built aspirations for a higher lifestyle for which he relied on credit cards.. A job loss last year forced him to default on his payments and in last few days he has utilized all his savings to pay off his bills. But it was not enough and now he has accumulated huge outstanding which he is unable to pay now.
I have always been advising to my friend’s relatives and clients-Pay Yourself First, meaning, put a little money into savings. A small amount of money also grows over time. Look ways to save money on a regular basis- take student loans for cheaper rates, buy on credit carefully, use employer benefits like passes to the maximum, use car pool or public transport if journey is long, buy used text books, avoid late night parties etc. Remember, you have short, medium and long term goals to meet. All the savings you do help you in meeting your goals.
- Emergency Fund