Business News Desk: Many times people are not able to save money despite earning well and some people create a huge bank balance even with a small salary. Have you ever wondered why this happens? Actually all this is money management. What you earn, how much you save and how much you spend is a big factor. Even your small savings can be of great help in filling your account with money. You just have to do your financial planning very thoughtfully. Know here those 5 methods which especially the youth must understand. With their help, you can create a bigger bank balance than even a nominal salary.
savings
Many people have a habit of spending whatever they earn. But Chanakya Niti also says that money is man’s best friend, because in times of trouble it remains with him as a true companion. Therefore, every person must develop the habit of savings. Now how much should be saved is a big question. In such a situation, the financial rule says that you should save at least 20 percent of your income. As your income increases with time, the amount coming in the 20 percent share will also keep increasing and this will help you accumulate your money faster.
investment
Just saving is not enough. What you have saved can be increased only through investment. Today, there are many such plans which can convert your investment into huge capital in a few years. If you are saving and investing 20 percent of your earnings every month, then you can become a millionaire in the future. Although it depends on where you have invested. You can see all types of options like SIP, PPF, FD etc. You can also take advice from a financial advisor before investing. They can help you a lot in reaching your financial goals.
Job
People look for better jobs for better salary. But it is not right to change jobs too often. This may spoil your profile. Take this decision very wisely. While changing jobs, you should consider things like job location, profile, tax impact, facilities and flexibility and only then take a decision.
Loan
In today’s time, there are facilities like credit cards. Youngsters use them without thinking and sometimes unnecessarily increase the load on themselves. Therefore, make a promise to yourself that you will use the credit card only according to your situation. Apart from this, many types of loans are offered in banks nowadays. You will take any kind of loan only when absolutely necessary. Apart from this, will not borrow from anyone.
ITR
ITR filing is an important responsibility which every individual should complete within the prescribed time limit. You will have to pay penalty for late filing. Therefore, resolve to file ITR on time.