Managing Your Future – Part 2

(Continued from previous part)

One needs to plan well always, control expenditure through regular budgeting, have a tendency to save, and look for opportunity to make money through honest ways. One also should be contented and not greedy. What we see is certain people at the helm of affairs and authority try to make money in all possible ways by hook or crook and in several unscrupulous ways just to leave enough wealth/assets to their kith and kin for generations to come. Take it for granted that such persons will not have good sleep and always will be dying every day. The reason is that they are not contented. Similarly, some squander money to enjoy life without providing for old age or their later years. Money is very much necessary but it is not everything. Try to have that much money or assets that keep you contented to lead a happy life till your end. Do not bother to leave back enough wealth. Instead provide good education to secure good jobs to your nears and dears and that too through your lawful earnings.

What I did after leaving my job was to plan my future. I had to shift my family to a place where my cost of living was less but where good education facilities were available for my sons. After providing for this essential expenditure, I had to provide for my recurring monthly expenditure. I had taken a house on rent near the school of my children so that I could curtail expenditure on their transport. The house was a small one but comfortable with affordable rent. I had invested part of my resources in a savings scheme that yielded regular monthly interest to take care of the rent, school fees, milk, groceries, newspaper, electricity charges, telephone bill etc. I provided 80 % of my interest for these, 10% for any untoward expenditure and 10% as savings. I used to either save 20% in case there were no untoward expenses during the month or used to spend the amount ear marked for saving if the expenditure was unexpected. The remaining part of my resources were allotted as follows – a part of it was deposited in fixed deposit fund earning cumulative interest so that it matured at appropriate time with the amount needed for the higher education of my sons. A part of it was spent on premia on insurance in such a way that I could get a lump sum every year after the 16th year. It is advisable to take several policies for smaller amount on maturity with monthly premia instead of insuring for a heavy amount with a lump sum as premium. In the longer run this is economical and useful. It provides you regular income every year. It may be spent for higher education of your children or for their marriage. The remaining part, I invested in mutual funds and equities so that I could try my luck. Fortunately, the yield was better. Further this way you can not only make money honestly but also a good amount if you are shrewd enough. In short, you should plan for savings on shorter as well as longer terms.