What do most people misunderstand about money and personal finance?

People often get confused with their relationship with money and how they manage their personal finances don’t exist in isolation of their well-being and the pursuit of their life goals.

The importance of money in human life is similar to the importance of food for the body. Just like you can’t live even for a few days without food, you can’t survive for long without money.

You can definitely solve most of your problems of life if you have unlimited supply of money. If you have lots of money:-,

• You won’t be facing basic problems of life like food, water, shelter or clothing. 

• You can buy all items for your comfort like house, Air-conditioners, TV and other household goods to live comfortably.

• You can engage many servants to take care of you and live like a king

The only problem is that money does not come just like that to any person by any amount of wishing, praying or wanting. You have to work hard and compete with fellow human beings to earn money as the supply of money is limited in this world but the demand of money is unlimited.

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Too often without thinking we chase after money. Sometimes to get money that money has people are becoming less social. Such as having enough time outside of work to enjoy family and friends, or the pursuit of a deep interest, such as learning a new language or how to play an instrument. Money has distracted us from thinking about other more important things. If someone wants something, all they think about is saving money and not spending a lot. 

If someone has a lot of bills all they think about is getting money to pay them off. If someone doesn't have a lot of money, they work more to make more. Because we need money for almost everything, people are to concern about having it, and because of that, some people think the world would be better without it. Everything cost money, even happiness that’s why people will do almost anything for it. 

Even if you don't think money is needed for happiness now, you probably had to pay for happiness before. Let’s say you and your friend are in the park and you two see an ice cream truck. You get up to buy two big cones, it’s a beautiful hot day and ice cream cone would taste delicious. Then when you get to the truck you open up your wallet and there's no money. You will feel embarrassed that you can't do a simple thing like buy ice cream.

Don’t get me wrong. 

Earning money and saving is important –

There are real needs for things like retirement or a college education. Having a rainy day fund is also necessary. There’s also the pleasure of an indulgence. But how much you need for your long-term needs and short-term needs is a very personal question that too few people think about beyond “more is better”.

With the money we do have, there’s a benefit to being frugal, while cheapness can be a menace. Research finds that cheap people are psychologically pained from spending money, and therefore are willing to sacrifice their well-being to save a buck. Frugal people, on the other hand, take pleasure is using money wisely. They’re more likely to deploy their money to pursue meaningful goals.

In this light, 

I think we are better served by thinking of money as a means to accomplishing goals, instead of being a goal itself. Start with: what do you really want to do, experience, and contribute through your life? There is such a thing as ‘enough’ money –and there is such a thing as a good life that extends beyond having money (laughter, friendship, intimacy, vigor and vitality, etc.). 

Keep in mind the ‘personal’ in personal finance – that’s the part almost everyone forgets about

Financial independence is a supreme power: Says Padma Shri winner

A Padma Shri recipient, winner of a People’s Choice award, Miss World 2000,  actress, singer, American TV star… You know who she is. Priyanka Chopra . But do you know what she thinks about money? 

Professionally, it is difficult to sum up Priyanka Chopra in one word—she is a Bollywood superstar, pop singer, TV star of the popular show Quantico, debutant in Hollywood’s upcoming movie Baywatch, former Miss World, and now a regional movie producer. However, when it comes to her own money management, the one word that she uses for herself is “ant”. “When it comes to an everyday situation, I am like an ant. I keep putting money aside because I know that if I want to splurge, there is a big mountain of money that I can use.”

Here are five money lessons that she stands by.

1. Financial independence is a supreme power

The first money lesson that padma shre winner learnt from her mother was the importance of being financially independent. Her mother had played a important role for in her financial independence her Mother always said that when a woman is financially independent, she has the ability to live life on her own terms. According to the her that was the best advice that she ever got. No matter where you go in life, or who you get married to, you have to be financial independent. You don’t know which curve balls life will throw at you. Hence, you need to have the ability to take care of yourself and people whom you love. Earning itself doesn’t make you financially independent. When you know how much money you have, where it is and what it can do, it’s easier to take decisions. (How to invest like warren Buffet?)

2. First save, then spend

“This habit of saving first and then spending was inculcated even before she started earning—when she used to get my pocket money. she used to save her pocket money. She was not a miser. She used to keep putting money aside because she know that if shewant to splurge, there is a big mountain of money that she can use which gets accumulated,” says Chopra.

One must always save a part of what one earns. The target need not be very high target in the beginning. The equation should always be income minus savings is equal to expenses. You can do this by putting your savings on auto-pilot by letting a fixed amount be invested every month.

3. Seek professional advice

Chopra is among the busiest stars in the Indian film industry. Since her work leaves her with little extra time, she depends on a team to manage her finances. “she have a good team who takes care of all of that. she leave it to the people who actually know what they are doing.she have a really amazing team, which includes her business managers over there (in the US) and over here (in India). Her mom heads it. So, she don’t even get into the nitty-gritties,

The money that you earn and save needs to be managed productively. So, if you don’t have time or don’t understand money management, seek professional help. Your financial planner or adviser will not only help you make appropriate investment decisions but also reset the financial discipline that you need to achieve your goals. A dedicated financial adviser whom you trust can bring clarity and stability to your money life.

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4. Be regular

Be it your studies, career, or investment, your efforts need to be consistent to get results. “If you consistently ace every exam or every test you take, you will keep on getting A+. If you study for all small tests, and get an A+ for all, eventually you will come first in class. Anything you do, you can’t lower your standards; eventually you will win. The plan is not the big win; the plan is winning today, right now,” says Chopra. Incremental investments need to be made regularly. To grow wealth, money needs to be added bit by bit. Be disciplined in investing. Besides keeping money aside consistently, take a relook at investments when needed.

5. Keep track of your money

In the initial days of her career, Chopra used to keep track of her money by jotting down details in a diary. “Initially, mom and I used to have a little diary where we would write what is coming in and what is going out just to keep track because there are months where you get a lot of money and then there are months where you get nothing. So you have to be able to make sure that you even-out for the entire year. This was especially so in the beginning for me,” shares Chopra. Whether you have a regular income or not, begin with writing down all expenses. You could use a diary, and Excel sheet or even apps. If you track your cash flow, you will be able to track down unnecessary expenses.

Spend Save Invest smartly

Financial Planning Steps That Works For Everyone

Financial life is like puzzle and you need good financial planning to solve this puzzle. Unfortunately due to lack of knowledge we take financial planning so lightly and end up in awkward situations. We wish we could purchase luxurious home, live lavish lifestyle and retire with security, however we forget that no wish becomes reality without planning.

“Planning is bringing the future into the present so that you can do something about it now”

In order to help you I am here with financial planning steps that work for everyone. Financial plan given here is very simple and will take less than an hour to start. 

Finding difficulty in financial planning ?

Follow steps given below to make your financial plan. Just leave a missed call on Moneymindz.com India’s Best Financial Advisor 022-62116588 or Visit Moneymindz.com. It offers Free, Unbiased and on-call financial advice on Investment Assistance for insurance, Loan Assistance Retirement, Planning, Money Management Investment, Advisor, Retirement Planning, Best Health Insurance.

Step -1 Know what you have

Take pencil & paper or open spreadsheet and make two column assets & liabilities. Note down what you have in asset column like cash, funds in bank accounts, value of stocks, bonds, mutual funds, PF balance, current market value of property etc. Once you are done with listing assets write-down about your liabilities. Liabilities are debts or payments you owe to someone else. This includes home loan, education loan, personal loan etc.

Subtract your total asset value from liability to know your personal net worth. This step is necessary to decide what you have in your hand for your future.

Step-2 Set up your goals

Now take a moment to think about your future need which demands money. Write down by when you will need how much money for what purpose. This is called as setting up goals. Make sure to consider inflation while formulating these goals. Once you have a list of goals, start assigning priority to your goals.

You may classify this goal as short-term, mid – term and long-term goals. Your task does not end here these goals are not like “Fire and forget missile which will attack on target and destroy it once fired”.

You have to be smarter and need to occasionally re-evaluate where you are with your goals, considering possible life-changes and new desires.

Step -3 Make Investments to fulfill your goals

Find out various investment options which suits your risk profile & goal. If you have mindset to protect your capital and get return on capital you can opt for “Debt” as investment option, and if you are ready to take risk you can opt for “Equity” based investment.

Step-4 Track your Investments till you reach your goal

You should track investment made by you on regular basis. If investment made by you is not working take appropriate action towards fulfillment of your goal with alternative investments.

Step -5 Insurance, Emergency fund 

Insurance is necessity today; Life is full of uncertainty and if you are the only earning member in your family you should take life insurance. Remember insurance is for “risk coverage” and not for “investments”.

You should buy good 40 year term insurance plan at the age of 25. Make sure total sum assured is 30 times of your monthly income.

You should keep 6 month of your income as Emergency fund. Creating Emergency fund is planning for unplanned event. This emergency fund will help you to fight with financial emergencies like job loss, unwanted medical expenses or something you have never dreamed of.

Follow these steps and I am sure you will get financial success.

How to achieve financial success?

To achieve financial success, there are only a few basic steps you need to reach your goals. But it always surprises me how many people don’t use these basic steps to create financial success over their lifetime.

In fact, the majority of people tend to ignore one or more of these basic steps. This ends up short circuiting the process of becoming financially successful.

You may be one of those people. But hey, you weren’t born with the innate knowledge that you need to be financially successful. None of us were. But just the fact that you’re reading this article shows that you’re willing to learn and seek out a solution for how you can achieve financial success in your own life.

So If you want to learn more Just leave a missed call on Moneymindz.com India’s Best Financial Advisor 022-62116588 or Visit Moneymindz.com. It offers Free, Unbiased and on-call financial advice on Investment Assistance for insurance, Loan Assistance Retirement, Planning, Money Management Investment, Advisor, Retirement Planning, Best Health Insurance,

So friends for you we are here! ( 7 Money Mistakes to Avoid to Grow Rich)

What’s Your Definition of Financial Success?

First, a word of warning: these are not tips for getting rich quickly.

Building wealth and creating financial success in your life takes time. It’s a lifelong marathon that you have to continually work through, even when you hit a wall, which happens to all of us at one time or another.

Also, you have to know what your definition of financial success is. Is it becoming so wealthy that your diamonds are encrusted with more diamonds? Is it being able to have enough money to live a comfortable life in your later years? Or maybe it’s to be independently wealthy enough so you can dedicate your life to serving others in some way.

How you define financial success is up to you, but you must have at least some idea of the end game of what financial success means to you in order to reach that goal someday.

Personal financial planning is an ongoing process, one that consists of three general activities:

Controlling your day-to-day finances to enable you to do the things that bring you satisfaction and enjoyment.

Choosing and following a course toward long-term financial goals such as buying a house, sending your kids to college, or retiring comfortably.

Building a financial safety net to prevent financial disasters caused by catastrophic illnesses or other personal tragedies.

The first payment that you make after receiving your salary with should be for yourself ; invest for retirement plan, investment in mutual fund , investment in insurance etc. Most people pay their bills first and are happy to save whatever is left over; the only problem is, there's never anything left over.

Know your Number. Too many people are disconnected from their finances, they don’t keep track if their own finances. So for achieving financial success it’s very important to know the numbers what u spend daily.

Regardless, know where you stand; what you make, spend, your debts, your net worth and monitor your numbers actively.

Why you need life insurance at the age 25?

People buy insurance to protect oneself from a loss. Life, Health, Auto, Home insurance all protect you or your family from a big financial loss.

You want to save for a future expense, so you can buy a car or a home. For events far enough in the the future you would actually want to invest, that is why so many people use more than a bank savings account to have enough money to pay for their kids’ college.

You want to invest for retirement. That involves buying stocks, bonds, or other investments to be used decades from now. They may even be needed to pay for expenses for decades beyond retirement. (Retirement Planning - To Cover the Risk of Living Too Long)

Why do you want to combine them into one investment fund? You said the insurance policy you want to buy is an investment tool plus a retirement plan. Each of those three things have different goals, rules, and tax implications.

Do you want to invest in life insurance? Are finding any difficulty? Just leave a missed call on Moneymindz.com India’s Best Financial Advisor 022-62116588 or Visit Moneymindz.com. It offers Free, Unbiased and on-call financial advice on Investment Assistance for insurance, Loan Assistance Retirement, Planning, Money Management Investment, Advisor, Retirement Planning, Best Health Insurance, 

Price -Term insurance is the cheapest form of life insurance we can buy.

Risk Cover - Life today is full of uncertainties; in this scenario Life Insurance ensures that your loved ones continue to enjoy a good quality of life against any unforeseen event.

Tax Benefits- Insurance plans provide attractive tax-benefits for both at the time of entry and exit under most of the plans.

Planning for life stage needs - Life Insurance not only provides for financial support in the event of untimely death but also acts as a long term investment. You can meet your goals, be it your children's education, their marriage, building your dream home or planning a relaxed retired life, according to your life stage and risk appetite. Traditional life insurance policies i.e. traditional endowment plans, offer in-built guarantees and defined maturity benefits through variety of product options such as Money Back, Guaranteed Cash Values, Guaranteed Maturity Values.

Affordability and Value -With term,we can purchase the amount insurance that we need without paying more than we can afford. This is especially true when we are young and need a great deal of insurance to protect our family.

Covering Short Term Needs - Term life insurance is a perfect solution for covering temporary obligations. Many people purchase mortgage life insurance which is essentially term life insurance that pays off our home in the event of our death.

Easy to understand- Term insurance is simple. With term, you are buying pure death protection without equity. It’s cheap and doesn’t have a lot of complicated variables.

Conversion Options - Most term policies offer conversion options allowing us to exchange our term life policy for a more permanent policy without proof of health. This option can be invaluable if we develop a health problem or can no longer medically qualify for life insurance.

Flexibility - With term, you can separate your life insurance from your investments. This “Buy Term and #Invest the Difference Philosophy” has become increasingly more popular in the last 20 years

The Money in The Pot of Butter

Vinit had to go on a long travel. He hid his money in a pot and put butter over it. So nobody could see what was there under the butter in the pot. 

Then he took the pot to his neighbour house Sumit and said, "Please keep this pot of butter for me till I come back." He did not say anything about the money in the pot. 

A month passed. Two months passed. But the vinit did not come back. Sumit thought, "I'm afraid the butter in the pot is bad."
And he took all the butter out of the pot and saw money there.
He took the money for himself and put many small stones into the pot in place of the money. When the vinit came back, he asked sumit for the pot. He carried it home and took out all the butter. He wanted to take the money. But he found only many small stones under the butter. (Money Mysteries: Know Yourself Before You Invest.)

Vnit was very angry. Then one of his pranjal came to see him. "You look angry, my friend! Why are you angry?" asked his friend.
"Oh, I am a silly man!" And Vinit told his friend the story about the pot of butter, the money and the small stones. 

"Well, I can show you how to get your money back. Let us go to the forest." 

And the two friends went to the forest, caught a monkey there and brought it home. 

"Now you go to your sumit and say, 'Please let your son come with me to the market. He can help me to carry food from the market."
The man did so. The sumit sent his son to the man. But they did not go to the market. The man went home with the sumit’s son and locked the boy in his house. 

The pranjal said, "Now go to your Sumit with the monkey and say: 'Here is your son." 

The man did so. The sumit was very angry. 

“Take the monkey away and bring back my son!" he said.
"Why, this is your son! If money can turn into small stones then a boy can turn into a monkey." 

The Sumit understood everything. He brought the money and the man let the boy go back to his father. 

The Vinit thanked Pranjal very much. He wanted to give him a part of the Money. But his friend did not take it. "We are friends, aren't we?" he said. "And friends always help each other. But never take money for that. Never, never!"

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Role of Your Life partner in Personal Finance and Cash Management

Especially in the Indian families , the personal finance is not manage by the both husband and wife together. Usually it may be the wife or the husband who manages the personal finances of the family. In India rarely it is found where both the husband and wife manages the personal finances of the family.

What will be the outcome within an organisation in which the purchase Department completely independent and with no understanding using the finance department from the organisation? Purchased dept might overspend; finance dept will forfeit control; misunderstanding as well as conflicts between both depts; the end result is the actual organization’s development gets ruined.

Thus, if the individual back is taken care of by one and only accomplice, then there could be a considerable measure of confuse amongst you and your accomplice in sparing and spending design. This will prompt misconception and conjugal stretch. Rather than having autonomous sparing and spending arrangement, having an associated plan will help you in dealing with your cash viably and accomplishing your money related objectives.

You venture out for dinner together. You navigate to the movie collectively. Why don’t a person manage your individual finance collectively? This may build cash compatibility for you personally and your partner. Both of you could have a much better relationship as well as understanding with one another.

Are You facing problem in managing your personal Finances? Don’t Carry 

Want help in personal Finance? We at moneymindz.com will make it easy for you. Just give us a missed call on 022-62116588 or Visit MoneyMindz.com to explore our best Free Advisory Service. We don’t sell of any financial products. We only provide FREE financial advice so that you are not mis-guided while buying any kind of financial products.

Why personal Finance is important?

Financial planning helps you determine your short and long-term financial goals and create a balanced plan to meet those goals.

1) In instance of Emergency:

Assume the Partner who is looking after persona advice, met with a mishap and should be hospitalized for one month or somewhere in the vicinity, then how does the life partner will run the show?

During the accident if the Partner has missed his wallet which had all the MasterCard’s and Credit cards then how does the life partner hinder those cards before it is abused? Where does she or he find that data?

In the event of emergency, nothing can help except the actual practice associated with managing the private finance collectively.

2) Actual Workable Spending budget:

When a person alone plan the budget for your loved ones, then a person can’t expect your partner to spend according to t the budget. If both the husband and wife prepare the actual budget together, she or he will arrive forward that will help you in preserving more.

You simply try this particular. Involve your partner in cost management and checking the investing. You might find the spending decreasing daily and the two of you will begin spending consciously.

3) Combined Financial Goals:

It is ideal to identify the Goals of your partner and also yours and watch that is there any Goals which is conflicting to the objective of your companion.

You might need to resign and settle in similar work city. Be that as it may, your mate might need to settle in the local place.

You may plan to purchase a Farm house to spend your relaxation. Be that as it may, your partner might be occupied with spending her/his relaxation at better places like slope stations and other tourism places. For this objective a period impart space to a resort supplier might be appropriate.

So distinguishing and settling your distinction of conclusion with respect to the money related objectives at the plan level is much less demanding and less expensive, rather than doing it at the execution level.

4) Overcoming the actual barriers:

There are several barriers or even objections within the partner in managing individual finance. How you can overcome which?

Virtually no time:

My wife or husband isn’t having plenty of time to check out these points. ‘No time’ is really a false reason. If it’s one of the priorities, then definitely it’ll somehow discover its period. Only point is you’ve not recognized it as you of your own priority. Personal finance happens to be a priority product for every single family because it will secure your own future.

 Not intrigued:

My life partner is not keen on individual back. Everybody is keen on their own future and their child’s future. So consistently everybody should be keen on individual back. You have to propel them and make them understandArticle Search, how this individual back administration is critical in accomplishing their life objectives.

Doesn’t understand:

My partner doesn’t learn about personal financial. No you have born nowadays with the abilities of cash management. All of us learned this here. Why don’t a person educate him/her upon personal financial. Money management is definitely an important existence skill. Everyone ought to know. You want your children to manage the cash better as well as wiser. The reason why don’t all of us educate the spouse very first?

Overcoming the actual barriers in having your spouse involved with personal financial management as well as getting all of them involved would have been a life changing exercise. 

Don’t skip it. Together it is possible to achieve your lifetime goals simpler and faster.