It is very important to have financial discipline in life. It helps to avoid landing in deep troubles. It just tells the individuals not to spend on things which are not required for them. For example, even though the individual might have surplus cash, it is still unnecessary to buy a tablet when he has a laptop with him. Some people would be very much interested to buy their second mobile even when the original mobile they have works fine. They do not seem to understand that it is a part of lavish spending. This will ultimately land you in troubled waters where sailing will become very tough.
Understand Your Position
It is of utmost importance to analyze your financial position. Reviewing it periodically helps you to understand where you stand. It will tell you whether you have liabilities or any outstanding loans which need to be settled very soon. At times, some individuals might even have surplus cash which they might want to spend on a luxurious vacation. Doing a careful analysis and giving a second thought before you spend on something will secure your financial future.
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Things That Can Be Avoided
Are you a kind of person who loves to eat outside very often? Consider a case where you spend 300 INR when you go out for a dinner per day. Apart from this, you may spend close 1500 INR per week for partying and for outing. This leads to close to 4000 INR per month which is very high for a person who earns close to 40,000 INR per month. If you stay in home, it is recommended to spend only 5% of your net salary on all the above said things.
If you just try to save around 2000 INR per month for the next 30 years like this, you will easily have a corpus of over 1 Crore in your kitty. So which one do you prefer? Decide yourself!!
Take up the cable TV charges, mobile bills, internet bill and other credit card statements. Go through the expenses incurred. If you think you cable TV connection has got a lot of channels which you do not see but still pay for it, go ahead and de-activate such channels from your list. If you think you have activated several subscriptions in your mobile with which you do not find any use, go ahead and cancel them. If you think you are not in a proper post paid or prepaid plan, then find a suitable plan in which you can save money and switch it over. If you think you have used your plastic card for unnecessary spends of your friends, then try to avoid all that in the future.
The above said things might look unimportant but will have a long term impact in your financial status. Savings through these channels will help you to save money in the long run. Do not take your minor spending as a silly matter and leave them. Ensure that you have a sound understanding of the good financial habits and follow them properly.