Think your spending is going out of control and your finances will soon be in a mess. Here are five tips to get your finances in good shape.

1. RECORD YOUR EXPENSES :- Did our moms have a little diary to help them their house keeping ?. Its a simple strategy that can make a huge difference when it comes to getting your spending under control. Writing down your expenses will make you more aware of your habits. If you wish to curtail your spending later, its much easier if you have a written reocord to examine check your list every few months and cut back on buying items that have not really worth the money.

2. RESEARCH : When it comes to items like consumer electronics, cars and so in, its very important to carefully research the products before making a purchase. Use the number of online resources or scoured consumer exhibitions which have maximum brands under the same roof. Compare products on features as well as price basis. Look for products where you get the maximum features for the money. This is generally not the most expensive or cheapest product, but one that is somewhere in the middle. Often when a company introduces a new top end product, the earlier top product will become cheaper and very attractive in terms of value. You should be alert to such opportunites.

3. BEING FLEXIBLE AND PATIENT :- Very often, you can save a quite a lot of money by waiting a little or by buying a different brand to your usual one. Buying the items in a salecan save you quite a bit of money.
Make sure you keep track of the sale ads in the papers and before long you may get a great deal on the product that you are interested in. You could also check with shops when they are expected to have their sale. Of course, one needs to be careful about when the sale is timed. A number of cars and electronic goods were available at second hand prices after the 26th July deluge witnessed in Mumbai. The goods were however damaged and not to the mark.

4. SMALL AMOUNTS MATTER TOO :- Quite often, we end up overspending on small things which don't seem expensive but add up to a considerable amount over a long period. Almost everyone ends up buying a few unnecessary things at the super market. Try and stick to the list of goods needed. Remember, even a small amount of ruppes 500 could be better spent as a monthly SIP investments. As an exercise, examine of your habits and see how much money you spend on it over the long run. For instance, if you are a smoker, add the money you spend on cigarettes every month. Then, use a savings calculator to see how much it will add up to by the time you retire. You might be surprised at how large the amount is.

5. SAVE AND INVEST :- Saving and investing in a disciplined and regular manner is a very important aspect of managing your finances properly, Start investing as early as possible and get the power of compound interest to build yourself an adequate retirement fund. Based on your salary and expenses, figure out a savings target. Make it a point to save that target amount at the beginning of every month. The best investment for the long run is probably mutual funds, you should invest in several funds covering the main sectors of the economy and the different types of companies (largecap, Midcaps, etc)

Courtesy
SHENOY INVESTMENT AND FINANCIAL CONSULTANTS PRIVATE LIMITED
11-A, KASHI NIKETAN, 2ND ROAD,
CHEMBUR, MUMBAI - 400 071

TEL : 6797 3433 / 2521 2111