Mishra Ji Finance

You must have seen governments or companies making budget for each financial year or you may have heard people talking about budgeting. But what is it? What is its use? And why you should prepare a budget? I will answer all your queries in this article. What is Budgeting? Budget is a tool for planning, coordinating and controlling your expenses for achieving long term goals. The process of making this plan is called budgeting. Making a budget enables you to determine what steps you need to take to achieve your goals and prevents you from over-spending. Budgeting is about controlling your finances, but only to the extent that it doesn't start feeling like a punishment. Your budget need not be rigid. An ideal budget should be flexible and adapt to any changes in circumstances. It should be customizable, with enough room for adaptation. Importance of Budgeting: 1. Budgeting helps you in understanding your relationship with money. Budget helps you in regular tracking of your...

Before we talk about emergency funds, a question comes to our mind, "What is an emergency?" Simply speaking, it's a serious event which requires immediate action. But how is this related to personal finance? To understand this, let's take an example. Suppose you have a small family of 3 members, and you're the sole bread earner. Unfortunately under some unavoidable circumstances, you lose your job, and at the same time, your only child falls seriously ill. What would you do? How will you act? Well, your approach will depend on your savings. If you have enough savings, you will quickly admit your child in a good hospital. If you have no savings, you'll look for a lender, which will cost you time (which is very crucial in case of emergency), and then you'll take a loan at a high interest rate. So in the above example, you have seen the effect of emergencies on our finances. The scenario in which you have savings, you save time and act quickly in an...

Who is a FRUGAL PERSON? A frugal person is someone who avoids unnecessary expenses and tries to save money wherever possible. Frugality means living a simple life, with minimal requirements, and making conscious choices on spending money. Conscious choices helps you to minimise waste of money, and maximise it's value. Examples of frugality includes: 1. Cooking at home, instead of eating out. 2. Using public transportation, to save unnecessary gasoline costs. 3. Buying discounted items. 4. Buying a used car, instead of showing off with supercars, etc. Frugality is a mindset, and it's useful for those who want to save more money, build a legacy or retire early. Please note that, frugality doesn't mean being a miser, and depriving yourself of good things of life. No it's not like that! "It's just a way of living a balanced life, with a calculated approach on saving money and investments." Most wealthy people got to where they are today by l...

Nowadays, everyone wants to be rich and have financial freedom. The inflation is causing much trouble for everyone. Prices are getting high, and there's a lot of stress regarding expenses. To handle these situations, you need to think smartly, set a target, make a plan and save accordingly. But how to do this? Don't worry. Here in this article, I have discussed ten simple steps to save more money. To save more money, you should fulfill these two conditions: 1. More Income 2. Less Expenses You can achieve these by following these ten steps: 1. Set a financial goal, which you want to achieve in future. Setting goals is very important, as it gives you a clear picture about how much money you need and how you will save it. 2. Try learning new things and increase your skill set, so that you can increase your source of income, which will increase your overall income. 3. Learn time management and try to live a disciplined life. This will give you enough time to do side...

If you want to build wealth and have a secured future, then saving money is very important for you. For buying home, land, vehicles, for marriage, higher education, travel, etc, you need a lump sum amount in your hand, which is only possible, if you save money. Whether you want to live a quality life, or deal with emergency situations, you need to have lump sum amount as savings. There are many reasons to save and several ways to save. Here in this article, I have discussed the important aspects of savings that you should know. 10 Reasons to Save Money 1. It's a step towards financial independence: By saving money consistently, you accumulate enough money to live a comfortable and enriched life, and have the liberty and authority to buy the things you like. 2. Helps you in an emergency: In case of emergency, when sudden need for money arises, your saved money helps you. For example, if you lose your job, it will take you almost a month to get a new job, and another m...

What is Financial Literacy? When you earn money, what do you do with it? Do you manage your expenses properly? Do you save some amount or get debt ridden? A person who can manage his hard earned money (salary/profits) in such a way that he can save some amount for future and also become debt-free, is a financially literate person. So "Financial literacy" is the ability to understand and effectively use various financial skills, including personal financial management, budgeting, and investing to save money for the future, become debt-free and attain financial freedom. When you are financially literate, you have a smart relationship with your money. You can have a clear picture of your future ambitions in your mind, and you can start saving money effectively with proper planning, investment and budget for completing your ambitions. The earlier you start to become financially literate, the richer you'll be because education is the key to a successful financial futu...