Oh! What a question to ask?  Who doesn’t love money? Of course we all do.(Leave aside spiritual stalwarts …I am talking about people like you and me with lot of aspirations in life.)  So, we all love money. And what do we do when we love something? We hold it very dear to us. We take good care of it. We try to hold it close to us. We protect it from any harm and try to think of it as and when possible.

Do we do that towards our money? Looks like our intention and action are not in sync. We probably do not think much about it. We carelessly keep the money in our wallets or may be it is lying in savings account for months earning 4% return annually. We impulsively spend it on attractive sale or some tempting ‘Buy one Get one free’ offer. We don’t keep a track of how much money is spent on household and lifestyle expenses.

Our Education system has made us capable of earning money but sadly nowhere in complete 15 years or more of our education, one teaches us how to manage our money. And we remain oblivious to the wonderland of Managing our hard earned money. We then seek external help and make hasty or uninformed decisions in poor investments.

LET’S CHANGE THIS SCENARIO!!! Take control of your own money.

So , today let’s understand a simple but most fundamental concept of CASH FLOW.  It is tracking of how much you earn versus how much you spend. The idea is to generate Surplus = Income – Expenses.

In my practice as Financial Advisor, I have come across some of the clients earning more than a Lakh per month but are left with few thousands by the end of the month. And there are others who inspite of having a modest salary, manage to save atlas 20% of it every month.

So how does it work? If you want to become rich, you MUST have a good amount invested every month.

Money Mantra 1: First Save the money and then Spend. Decide to put some money aside for investing for future in the beginning of month. And let the remaining money be available for expenses.

Money Mantra 2: Track and monitor your expenses. There are many free Apps available to track your expenses. This will tell you where your money is getting spend. And believe me this revelation can be an Eyeopener. This expense tracking can put our money on track.

Money Mantra 3: Try to achieve the magic figure of atleast 25% of your income saved . That’s a healthy rate of savings.

So now start showing through your actions that you love your MONEY by taking care of it. Start today for a better tomorrow.

In the next Post, let’s talk about how to best utilise the SURPLUS you will start generating from today.

Happy Moneying ……