Do you have enough money to match your expenses?
NEW DELHI: Is there something like having enough money? Some of us are always paralyzed because we don't have enough. Some humbly boast of not being rich. When we look around, we cannot help feeling envious of those who are better. Can we verify if we earn enough? Or can we say if that boastful colleague or boastful brother-in-law are doing as well as they do? Here are some clues to work.
First, do you usually accumulate short-term debts that you pay with silent resignation? Are there cases of credit card expirations? Do you take manual loans from friends and family, even if they are small? You may be running out of income that you really need for your spending habits.
Second, do you stress the payment of bills and EMI? If routine payments require juggling the bank balance, you may have a boat that is too tight. The first sign of revenue matching is the surplus in your bank account at the end of the month. If your income has to be extended to meet routine payments, you are earning too little or spending too much, or both.
Third, do you find it stressful to deal with situations that involve sharing expenses with others, where you have no direct control over the decisions that are made? Do you avoid dinners and meetings for fear of unexpected expenses? Sometimes, when you can't control how much you earn and how you spend it, your frustration with uncontrolled expenses increases.
Fourth, do you hesitate to help someone who needs it? Having less to allocate to competitive needs, makes you very aware of the opportunity cost of money. Each possible expense appears along with the other use to which you can allocate the same money. You cannot be generous when you are uncertain about the money you have and your ability to replenish what you have spent.
Fifth, do you find yourself juggling your assets too often? You may believe that somehow your assets can be reorganized to improve your financial position, and that seems like a better deal than borrowing. Rotate what you will not have much, except indicate your refusal on your income.
Sixth, are you attracted to quick schemes to get rich? The poor are the biggest buyers of lottery tickets. But the act of buying the lottery itself is an act disguised as despair. If you are operating daily without training or strategy, if you place bets on IPOs hoping to win money quickly, and if you are looking for media names of shares to buy and sell, your real problem could be that you are not satisfied with The amount of money you already have.
It is not generalized how much should be earned and how much should be spent. However, a situation of financial comfort is one in which you do not usually borrow; you pay your bills and fees painlessly; you manage a social life that sometimes allows you to pass unexpectedly; It has a shock absorber to cover unexpected expenses; It has a constant surplus and savings and, therefore, can have a long-term vision of savings and investment.
If you discover that you or your loved ones persistently show some of these traits, do not immediately classify them as stingy, selfish and intelligent.
As for those who ask if the situation can be remedied, the answer is quite simple: the income earned by an asset depends on where it is deployed and how it is used. You are the human asset that generates income. Make sure you have invested in your skills, knowledge and attitudes and that you are implementing them for optimal income. You can blame your circumstances and luck as much as you want, but that asset was your responsibility from the day you were born. Make it worth it.
(The author is president of the Center for Education and Learning about Investments)