Sunday, April 26, 2009

Pay yourself first and be Happy

No matter how much you hate to admit it, money is important. It's important to sustain life. It buys you food, pays your bills, pays your rent or house loans and a whole lot of necessities in your life. So whether you like it or not, you need to be heathy financially. If not you'll have lots of trouble to cover for unforeseen circumstances and build your eggnest.

There was something I read long ago which I think most of us don't really do. It's a real simple concept really. It's call 'Paying yourself First' which put simply is keeping aside money in your bank account preferably a fixed deposit or insurance or any account that does not allow you to withdraw from the account very easily.

So at the end of the month when you get your pay, the first thing to do is put aside 10% or more of it into your fixed deposit account before you go on a shopping spree. Because whether you like it or not, it's human nature whenever there's money in your pocket you tend to spend it.

Another useful advice is to have only one credit card or better still a debit card to use. That way you avoid spending too much money because the credit limit is less and you would be more careful not to overspend and exceed the credit limit. If you pay only by cash then you'll learn to value your money more. Having charge cards only creates false idea that you have more money when infact it's only a credit facility given by the credit card company, at the end of the month you still have to pay the bank for the amount that you spend plus a high interest rate for any balance unpaid.

There are many who fall into this money trap and find it hard to pull themselves out of it. Anyway you look at it all these steps require some amount of discipline on our part. Face it, if you wanna be happy you gotta save some and control your spending, especially now when the whole world is facing economic crisis. Economists will probably disagree with me by saying these will only shrink our economy by kerbing spending. But at the end of the day, if you're in a rut and have financial problems, are these economists going to help us out. I think not.

In short, remember to pay yourself first when you get your pay at the end of the month and control your spending. If you have lots of credit cards, get rid of all of them if you can. If not, just keep one for convenience or emergencies but remember to use with caution. Be your own boss not a slave to the finance companies. Till next time, stay healthy physically, mentally and financially, keep fit, look great and be happy.

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