article 35

11 things NOT to do with your money
11 things NOT to do with your money
Smart investing is the key to financial happiness. It helps you multiply your money. And it certainly is not as difficult as you think. If you think you need extra money to start saving, you are wrong! Saving is not about saving extra money. It is about planning your expenses in a manner that lets you save enough money, no matter what you earn, for a safe future. But handling money is not very easy. So here are 11 tips on what you must not do with your hard earned money. 1. Don't go on depositing your salary in your savings account Do you rush to the ATM and withdraw money regularly? Well, you cannot afford to be careless about withdrawals. While a savings bank account helps you meet your regular needs, it is important not to deposit all your earnings in the savings account. While you must keep a portion of the salary in the savings account, make sure you allocate enough money for regular expenses, as well as additional expenses, that you may need to meet unexpectedly. Excess money in savings account will always also tempt you to spend more money than you should ideally spend
2. Don't manage money without a good plan A golden rule in investing is to have a good financial plan. Do not invest money only on the basis of what your friends or relatives say. You must identify your priorities and set realistic goals. Calculate your monthly expenses and see how much you can save every month. Make a list of things you can and cannot avoid. Learn to strictly stick to you plans. 3. Don't invest all your money in the same plan No matter which investment plan you choose, you must not invest all your money in just one plan or in one bank. You must allocate your resources across various schemes, be it mutual funds, fixed deposits, stocks or small saving schemes. It is very important to diversify your investment. Remember, interest rates and services charges vary from one bank to the other. Before you invest money in any scheme, call up banks, financial service companies and make sure you get the best deal. 4. Don't set high savings targets You must not go overboard on savings. You are the best judge of how much you can save and how much you can spend every month. There is no point in saving all your money and being sad about not having enough for your needs. If you have a family, you must take care of their needs as well before you start investing. Set a target accordingly. But you should allocate a fixed amount every month. The more you can save, the better. 5. Don't lose your focus on savings You may have invested your money across various investment options. Don't think that your job is over. In fact, you must keep a watch on interest rate changes and market fluctuations. If it is stocks you have invested in, check out how the companies are performing, read up, be alert. You have to be proactive to the changes and be actively involved to make your money grow. 6. Don't splurge more just because you got a hike Most people have a habit of spending more and changing their lifestyle when they get a good hike or bonus. There is no harm in enjoying and have a good time. However, if you would like to save money, you must invest the additional amount to add to your savings. You must always think about the long-term benefits. 7. Don't shop for unnecessary items You must learn not to give in to temptations while on a shopping trip. It is important to make a list of things you would need for the month and stick to the list. While it is good to indulge yourself once in a while, you must always be careful about spending money on impulsive buying. Many items may look attractive but soon you may end up not using it, thus wasting your money. 8. Don't go for too many loans at the same time It is very easy to get a loan nowadays. Loans are available just by sending an SMS. But beware of easy loans! Your may want to own a car, a home or some other luxury, but ideally you must not go for too many loans at the same time. Buy things one at a time so that you have enough money for yourself and to save and you are not too indebted. 9. Don't join any scheme without verifying the credentials There have been several cases of fraud, where innocent investors have been cheated by crooks posing as smart investors or advisors. They may lure you with all kinds of schemes of getting higher returns at the shortest possible time. Always cross-check facts and figures and their credentials before you invest in any plan. You must also be aware of the fine print. Ask for all the details even it is time consuming. At the end of the day, you must be thoroughly convinced that you have made the right choice.
10. Don't invest your money in risky plans While it is important not to keep stacking your money in a savings account, it is not important not to indulge in risky investment plans. You must start saving with smaller amounts and try to save more as you go along. To start with, you must seek the advice of a good financial planner or choose low-risk plans. Remember, slow and steady wins the race! 11. Don't forget the dates, plans Most people are very bad at remembering dates of maturity of their fixed deposits, or savings schemes or dates of paying premium. Make sure you keep a diary of all the saving plans, their maturity dates and remember to either reinvest the money or go ahead with any plan that you have in mind when the plan matures. All the papers must be safely kept in either a bank locker or any safe place. You must also keep a photocopy of all the important papers incase you lose the original will be useful
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How to spend wisely. 4 tips
Today's youth have higher disposable incomes as compared to their counterparts in earlier generations. The same has resulted in a significant change in lifestyles.Objects that were considered luxury goods say a decade ago have become necessities for the present generation. In fact, the young population has been a major contributor to the India growth story. It is widely believed that spending habits of the youth will play a major role in vitalising the economic cycle, going forward. However, there is a need to understand that spending in an unrestrained and haphazard manner could spell disaster for your finances. Spending should be done with a degree of discipline and planning. We present four tips which will help you master the art of spending. Spend in line with a budgetRemember the longstanding method of making a budget and then spending in line with the same. That is still the right way to go about spending. Having a clearly laid-out budget will help you prioritise your spending. For example, the highest priority must be accorded to investments that have to be made in line with investment plans and commitments like life insurance premiums. Only when the high priority needs have been taken care of, should the balance funds be used for other expenses. Although the idea of abiding by a budget for spending may seem "uncool", it is nonetheless, the right thing to do. Track expensesAgain, tracking where you have spent your money may not qualify as an interesting way to spend time, but it is important nonetheless. It will provide you an unambiguous picture of your cash flows; this will put you in better control of your finances. More importantly, it will provide you an insight into your spending habits. This in turn can help you understand the areas that account for a significant portion of your expenses and give you the opportunity to do a reality check on their utility.
Don't succumb to impulse spendingIt is now considered trendy to hangout at malls, coffee shops and lounges. And window displays and latest blockbusters are known to test the resolve of even the strongest. A young individual with access to disposable funds can be rather vulnerable in such a situation. Resist the temptations and don't succumb to impulse spending. This is especially pertinent if the spending will come at the cost of your monthly investment towards your retirement/home building corpus. Always try to spend in line with your budget. For example, while it's good to take your friends to the movies or for a dinner once in a while, we recommend that it not be overdone. Movies/dinners can be very expensive propositions these days, which means that you stand to gain significantly if you cut down these outings even by say 20%. For example, even if Rs 1,000 were to be saved on these outings and invested in a diversified equity fund over 20 years as a one-time investment, it would mature into Rs 16,366 (assuming 15% compounded growth). Beware of credit cardsEasy availability of credit cards has provided a major boost to spending. A credit card gives you access to high spending limits; also it liberates you of the worry about handling cash. But credit cards have their downsides as well. For example, making the "minimum payment due" could get you entangled in a debt trap and force you to make interest payments at obscenely high rates. In fact, credit cards are so pervasive in the present day context that we have chosen to dedicate an article to the same in this guide.

31.7.7
Dow Jones Deal Gets CloserAs Talks Turn to Fees (wsj)
States Export Their Inmates as Prisons Fill (nytimes.com)
India on verge of historic win (Hindustan times)
UTI Bank is now Axis Bank (Times of India)
The tale of Zaheer and jelly bean (DNA)
28.7.2007
India Nuclear Pact Still Faces Hurdles (wsj)
U.S. Set to Offer Huge Arms Deal to Saudi Arabia (nytimes.com)
India has only 31.5 million taxpayers (Hindustan Times)
Businessman splurges Rs 1.5 cr on 86 SIMs (Times of India)
News helicopters collide; 4 dead (cnn.com)

27.7.2007
Stocks Tumble As Wary Investors Reassess Risks (wsj)
Asian Stocks Fall Sharply After U.S. Sell-Off (nytimes.com)
Sensex melts over 541 points on global cues at closing (Hindustan times)
Haneef conditionally freed from custody (Times of India)
Political crisis grips Goa (Hindu)
26.7.7
Buffett Buys Kraft Stake, But Goal Is Unclear (wsj)
Soccer Victory Lifts Iraqis; Bombs Kill 50 (nytimes.com)
Incredible shrinking couple loses 580 pounds (cnn.com)
McGrath, Warne agree to join ICL: report (Hindustan Times)
Manohar Parrikar likely to be next Goa CM (Times of India)
25.7.7
Beggars turn richie-rich, all 'credit' to smart banking (ibnlive.com)
Amazon Looks to Keep Sales Momentum (wsj)
Clinton and Obama Campaigns Spar Over Debate (nytimes.com)
Experts: Older women seeking help for eating disorders (cnn.com)
Pratibha sworn in as India's first woman President (Hindustan Times)
24.7.7
The great escape; India draw with England (Timesofindia)
GM and UAW Cannot Ignore Health Care, Labor Chief Says (wsj)
U.S. Is Seen in Iraq Until at Least ’09 (nytimes.com)
Kalam was real people's President: President's bodyguards (Hindustan Times)
Lara joins ICL (hindu)
23.7.7
Dubai tower is now 'world's tallest' (cnn.com)
Lucky lips Shilpa Shetty charges $20,000 to open them (ibnlive.com)
Web-Search Privacy Efforts Move to Forefront (wsj)
Harry Potter’s Popularity Holds Up in Early Sales (nytimes.com)
Harry Potter’s Popularity Holds Up in Early Sales (hindustan times)

21.7.7
Tech Sales Surge, But Low Pricing Cuts Into Profits (wsj)
Move over JK, this is the world's most-read author (The Independent)
With less brain insulin, live longer (Timesofindia)
Camp Joins Summer Fun With Teaching Hindu Faith (nytimes.com)
English smoking ban: Future looks rosy for pubs (cnn.com)
20.7.7
GM Regains Top Spot in Global Sales; Toyota Retains Lead in First Half (wsj)
Google Earnings Up 28% but Miss Expectations (nytimes.com)
'India could achieve double digit growth' (timesofindia)
Strauss punishes wayward Indians (deccan chronicle)
S.V. Subba Reddy springs a surprise (hindu)
19.7.7
Second-Quarter PC Sales Rose More Than Expected (wsj)
Murdoch’s Arrival Worries Journal Employees (nytimes.com)
Wipro projects $777 million IT revenue for second quarter (Hindustan Times)
Pratibha to be victorious, will become first woman Prez: Congress (New Indian Express)
Harry Potter mania is at its peak (Hindu)
18.7.7
ZeeNext, new youth channel from Zee (livemint.com)
India slips to fifth spot in Test rankings (DNA)
Dow Jones Board Approves Sale (WSJ)
176 on Plane, and Others, Feared Dead in Brazil (nytimes.com)
Harry Potter spawns parallel Internet world (Hindustan Times)
17.7.7
Dow Jones and Murdoch Said to Move Close to Deal (nytimes.com)
Dow Jones, News Corp. Set Deal (wsj)
Dow Jones, Murdoch Reach a Deal (Washington Post)
Google offers site-specific search for businesses (Times of India)
News Corp, Dow Jones reach tentative $5 bln deal: report (reuters.com)
16.7.7
U.S. no longer tallest country in world (AP)
2-month-old gets his own PAN card (Mumbai Mirror)
Copa America: Ruthless Brazil beat Argentina 3-0 in final (New Indian Express)
Ford May Put Volvo on the BlockAs North American Woes Deepen (wsj)
New Populism Is Spurring Democrats on the Economy (nytimes.com)
14.7.7
Lindsay Lohan wants to win an Oscar (DNA)
Lindsay Lohan wants to win an Oscar (wsj)
Crackdown on ‘Killer Buses’ Strands Delhi Commuters (nytimes.com)
Bin Laden bounty to go up to $50 million (Times of India)
Indians meow before Lions (Hindustan Times)
13.7.7
Abducted FCI official killed ( Hindu)
Private medical college fee in State hiked (New Indian Express)
Autographed letters of Gandhi auctioned in London (Times of India)
Naxals blast power point (Deccan Chronicle)
81 pc NRIs paid bribes in India: report (Hindustan Times)

12.7.7
Maoists go on rampage in Andhra Pradesh (Yahoo.com)
Whole Foods Is Hot, Wild Oats a Dud -- So Said 'Rahodeb' (wsj)
Rupee recovers smartly, hits fresh 9-year high vs dollar (DNA)
Premji among 'greatest entrepreneurs of all time' (Times of India)
For Parking Space, the Price Is Right at $225,000 (nytimes.com)
11.7.7
Pakistan troops comb mosque for holdouts (Yahoo.com)
Spectrum Sale May Open Market (wsj)
Where Outsiders, and Fear, Loom Over Daily Life (nytimes.com)
Don’t misuse contempt law, says SC (Hindustan Times)
Nasscom welcomes SC order on captive BPOs (DNA)

10.7.7
Keep moving...immobility is dangerous! (ibnlive.com)
Boeing rolls out 787 Dreamliner passenger jet (DNA)
China Executes Former HeadOf Food Safety Agency (WSJ)
Animation, the next big thing in Bollywood (Hindustan Times)
Anand is the king again at Leon (Hindu)
9.7.7
Mumbai can dream of becoming India's Shanghai (Hindustan Times)
Former PM Chandra Shekhar dies of cancer (Reuters)
U.S. Studies Ways To Formally End The Korean War (wsj)
Sensex at new high, up 111 points (Indian Express)
Pakistan Mosque Leader Vows a Fight to the Death (nytimes.com
7.7.7
Key to marital happiness? Let the wife have her way (ibnlive.com)
Strong Jobs Data Signal Economy Is Gaining Steam (wsj)
Sensex multiplies 21 times in 21 years (DNA)
Stars turn bloggers (Hindustan Times)
India now third on world's AIDS list (Times of India)

6.7.7
Microsoft's Videogame Efforts Take a Costly Hit (wsj)
Wipro buys out Singapore consumer firm for Rs 10 bn (Hindustan Times)
In India, a Prayer for Rain Despite a Deluge (nytimes.com)
Indians among oldest in the world to lose virginity (ibnlive.com)
Sensex scales Mt 15K after seven month climb (DNA)

5.7.2007
Putin wins 2014 Winter Olympics for Sochi (Hindustan Times)
Soaring Rents Pinch Businesses Across the U.S. (wsj)
Student gets Rs 23-lakh salary package (DNA)
Surge Seen in Applications for Citizenship (nytimes.com)
Manmohan Singh calls for water conservation (Hindu)
4.7.2007
Beijing to ban a million cars in clean air test (DNA)
Abducted BBC Reporter Is Released (wsj)
Andhra to reserve jobs for Muslims (New Indian Express)
All charges against me are motivated: Patil (Hindustan Times)
Shekhawat charges false’ (Deccan Chronicle)

3.7.2007
Car bomb found in Glasgow hours before Indo-Pak match (DNA)
Car bomb found in Glasgow hours before Indo-Pak match (WSJ)
Keeping Patients’ Details Private, Even From Kin (nytimes.com)
UPA hits out at Shekhawat (New Indian Express)
Rich, but happy with their humble jobs (Times of India)
2.7.2007
Yuvi cuts Proteas to size (Deccan Chronicle)
1.7.2007