There is a lack of cash in the family due to marriage or loved ones illness or the needs of parents’ money.
This week’s story is about a 35-year-old man. He wants to manage his money. However, he does not know how he will grow in this direction. After working for almost 10 years, everyone reaches this stage. It is challenging for many people. This is the time when a person makes a solid place in career. Some people can become CEO in 35 years. Some can do big business.
Luck does not bring us all to one place. Nor do we get what we want. This young man is an engineer. He got a job in a big firm. After this, he worked hard in his job and achieved good performance rating.
In the large gathering of thousands of engineers, he does not know where his career will go. He is satisfied with the job. Therefore, does not even think about changing it. We do not ask any more questions than ours if the job runs well. We get used to salary every month. It is not right to take risks with this money. Earning permanent income at the age of 30 to 35 is like achieving a big goal.
This young man did not leave his job to get a postgraduate degree. He does not know if he will get a good job after studying for two years.
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Second, getting admission in reputed universities is a difficult task. It is also difficult to score good in GRE / GMAT while working. It is difficult for him to leave the job without assurance of good school placement. There are many people who compromise to get a job even after getting a post-graduate degree.
The profession that is chosen at the age of thirty, often gets used to compromising with the same. This is the story of most people.
Credit card is the first problem of this young man. Earning money and being independent means having the freedom to spend. He is happy to spend on the things that are most important to him. These include gadgets, gym memberships, food and drink, picnic.
Then he got married. After that, he was burdened with spending on gifts, relatives, ceremonies and marriage. Now he has started borrowing regularly on his card. He knows that it is expensive, but there is no alternative. It looks convenient to him.
Making choices with money and being able to prioritize them is a skill. This comes after a lot of effort. The methods of spending 30 to 35 years should be mastered. Should say no Also, smart ways to spend should be found so that there is no regret later.
The second problem of this young man is EMI. He has to pay monthly installments for the house and car. Now husband and wife also want another car.
because of lack of cash to spend. Then the necessary expenses also become difficult to run. It is not prudent to spend much salary on EMI. It is also beyond comprehension that household expenses go on credit cards.
Banks may be willing to give you a loan based on your income, but only you know how much your expenses are. Any expenditure left after taking into account the mandatory expenses for running a home should not be spent on EMI. By the age of 35, regular savings should become a habit. At least 20 percent of income should be saved. The EMI of the house cannot be counted as savings.
The third problem is that this young man gets cash shortage every now and then. Even after earning both husband and wife, when they return after celebrating the holiday, they find that they spent a lot on the ticket itself.
Cash is not left in the family due to marriage or loved ones disease, or the needs of parents’ money. Living with kadhai becomes quite challenging.
This is a direct result of this young man’s poor asset allocation. His biggest asset is home. His family lives in it. This house has taken a major share in the form of EMI. However, it has not become a means of income.
It is not prudent to spend more at home first. If the income increases, then you will buy the house anyway. The first house should be for basic needs. In which you can only live. Even if it is on the outskirts of the city, there is nothing. Lower EMI will leave scope for creating other assets. From this you can create assets like bank deposits, mutual funds, bonds and shares.
When you have liquid assets, you can take loans on them at low rates. They can also be redeemed when needed. It is good to start saving early. Even if it is from a small amount.
Sip of 1000 rupees may seem small, but after 10 years it will become an amount to support you.
This young man worries about financial goals. He often hears about them as well. He is nervous whether he has enough for his child. He thinks about his retirement. He feels that it is not too late for this. There is an easy way to see all these things. That is to make assets.
With 35 years, the good thing is that a lot is left to see. When you reach the point of 50, you are satisfied with what you have made.
