Welcome Finance Enthusiasts !!

” Good investing is not necessarily about making good decisions. It’s about consistently not screwing up.”

Handling your money is a soft skill. It has a lot to do with how you behave with the money. Of course there are professionals who give a detailed plan of where you should invest the money to achieve certain goals. But sticking to any plan is very difficult, that is where the soft skill of behaving smartly with money comes into picture. Behaviour is difficult to teach, it is learned through observation and a strong mental push. When I say mental push I mean the discipline to consistently do something to achieve a goal. Motivation is fleeting but discipline is the biggest virtue a man can have.

There is enough debate to introduce financial planning in the school syllabus but till the time it happens here are 5 tips on money management. Anyone can refer to this – be it parents who want to imbibe this in their kids, teenagers, and even adults struggling to manage money.

Patience isn’t just a virtue in life, it’s a superpower in investing.

💲Know your money

Gen Z kids are smart. Like they were born in the age with knowledge accessible on their finger tips. Switch the TV Channel from cricket to CNBC TV 18 and encourage kids to watch it with you. They hear a new word and google to know the entire thing. 10 minutes of news channel will give you more knowledge than an economic textbook. Whenever there is financial discussion going on or any money talk involve the kids. It makes them feel empowered as well as they understand the finances on which their family is running. So on their next birthday they will think twice to demand an expensive gift 🎁Also reading finance books 📚 is a good encouragement. Personally ‘The Psychology of Money’ by Morgan Housel has helped me a lot.

💲Encourage Saving habit

Buy them a piggy bank. Piggy banks have the magic where they motivate adults and kids alike to keep adding money. The simple joy of filling the box is unmatched. As parents you can invest in as many FDs, PPF, Sukanya Samridhi Scheme etc but the simple piggy bank can do wonders in encouraging kids and adults to save alike. Also when then box is full you feel guilty to empty it so that’s a pause on spending. You have to save like your fixed expenditures. You have bills, rent etc etc add saving xyz amount in the list.

💲Say NO

I cannot emphasize how important it is to say no. Be mindful of what you are spending at and whether it is really important to make that purchase.

Say no – to every weekend plans (going out on one weekend is also fine)

Say no – to every craving wave that washes you over when you see someone eating something delicious on Instagram

Say no – to combo offers. Yes it is like ‘Hey pay 100 bucks more and we will give a coke free’ Means seriously do you think that coke is worth 100 bucks 😑

And the list can go on and on. At first you will get serious FOMO but eventually it sinks in that I don’t have to be everywhere. The pressure of following the trend will fade.

You might feel this SAYING NO hack is too much, but trust me being a Gen Z myself this is a shortcut to adulting 😇

💲Don’t be jealous

You spend more money when you see others spending. Comparison will burn the biggest hole in your pocket than any other thing. Practise gratitude with whatever you have and focus on your financial journey. Just because your friend has booked a flat and you are still struggling to pay rent doesn’t mean you are late. Everybody has their own timing.

💲Magic of compounding – Investment is a skill but time is the secret weapon.

Considering all the above tips you have saved up money. The question is what to do with this money. Fulfill the bucket list you have and feel the joy. Some happiness needs to come out from all the sacrifices you made. Well saving money will help you fulfill the short term goals. For long term goals the timeline needs to be big. Buy a stock and earn the rolling returns. Invest in mutual funds and let compounding do the work.

The advice of which stock to buy and in which mutual funds to invest will come from tip no 1. So please check out the financial news.

These 5 tips will ensure that you are always afloat and not drowning in debts. These small habits will help to maintain your current money position. Also every important thing to note is that saving does not lead to wealth generation. Building wealth is a step above money management . First handle the money you currently have and then move to the second stage of creating wealth 🤑.