Truths about money, you must know

07-11-2017 Tue 12:31



Money is the root of everything. Without money, even if there are others around us, we would have to remain alone, by ourselves. That is why you must struggle. After all this struggle, whatever you earn, you must invest and let it grow. Let us learn about these interesting facts about money.


Own house before 25
representational imageMany own a house only after 35 years and above. Experts however suggest that you should do this, at least 10 years earlier, that is at 25 years. Because at this age, you are free birds. You spend a lot on friends and entertainment. You buy a lot of expensive bikes, mobile phones, gadgets etc. Tours, of course, need no mention. After starting to work at a young age, earning a good salary every month, all the money is spent on entertainment. Many do not see any reason for having goals. However, experts state that those who own a house at 25 years, will be millionaires by the time they are 50. This does not mean to say, you should buy a big house. You can buy a single bedroom flat. If you invest in 20 per cent down payment, the rest is aided through a bank loan. That is why, it is wise to buy a house at any age, without thinking too much about it.

Down payment
Down payment is the amount that has to be given initially, as an advance or deposit. This is usually 20 per cent of the amount that you would be getting as loan from the bank. For example, if you are eligible for Rs. 20 lakh housing loan from the bank, you need to initially pay, Rs. 4 lakh on your own. For buying a car, the down payment is 40 per cent of the bank loan. That is, if the car is Rs. 5 lakh, you need to pay initially, at least Rs. 2 lakh. For example, if you want to buy a car in two years, and wish to keep Rs. 2 lakh ready, you will need to save at least Rs. 8,300 per month. You should plan ahead and save for at least five to 10 years, to keep the amount ready for down payment.

Timely payments, credit score
When you have a good credit score, you can obtain loans easily, with less rate of interest. The best method of clearing any type of loan, including credit card loans, is to pay back the instalments on time. This also affects you credit score, which is said to be good when it does not go lower than 750 and is at least 900. It is necessary to maintain a good credit score. Return the credit cards that are of no use to you.

Curb expenditure
representational imageStudies have shown that most people spend on entertainment, dining and transport (travelling). They order food from outside and even get it delivered at home. Couples spend in touring in the country as well as in foreign countries. They spend a lot on cars. If you need to save money, you need to curb such unnecessary expenditure.

Help of books
Read the book, Rich Dad & Poor Dad, to learn about financial freedom. In these type of books, the authors try to put forth information with much in depth study and analysis.

Credit card expenditure
representational imageIt is dangerous to use credit cards indiscriminately. It is also not advisable not to use credit card at all. Because credit can be used to the best advantage, with responsibility and care. All bills must be paid and shopping must be done through credit card. This will give you at least two to three rewards points for every Rs. 100 spent. Check out how much you have spent on your credit card, and pay it up from your savings bank account, before the end of every month. This also improves you credit score. Another advantage is, you will have your monthly expenditure statement ready. If you notice any unnecessary expenditure, you can avoid them.

Investing automatically
Everyone knows that you will have to save some amount from your earnings. It is also important to invest these savings wisely. However, many of you do not show much interest in this matter. This is mainly because, you have no enough time, or you do not know where and how to invest. That is why it is important to consult a financial expert and plan the right kind of investment. Accordingly, you must instruct your bank to automatically transfer the amount from your account, on the first of every month.

Not just wages, extra income
representational imageWhen you observe financially well off people, you will notice one thing. They will get income from various sources. Interest on income, dividends from stocks, rents from property, etc. All this is because, they have planned their finances in this manner.

How much you saved
It is important to know how much you saved, not how much you spent. The more wealth you create, the more elated you will be. You will be very enthusiastic and encouraging. If you are able to save, say Rs. 10,000 per month at present, you should be able to double this in the next 12 months. If this is your goal, it will fetch you good results.


More Articles
Joint life insurance policy for couple...how beneficial?
2 years ago
Are you using the right charger for your phone? Check out
2 years ago
Shoot amazing videos with mobile phone
2 years ago
How to delete, block emails in Gmail?
2 years ago
Are your eyes healthy? Identify eye problems this way
2 years ago
Government services at your fingertips with these apps
2 years ago
Ways to increase height: Any options?
2 years ago
Life after death…what organs can be donated…give life to how many?
2 years ago
Phones costlier than Apple iPhone
2 years ago
Hyderabad Metro Rail halts..facilities in stations
2 years ago
Green peas curry...tasty for chapattis, paratas
2 years ago
Age for insurance cover. Need it for 100 years?
2 years ago
Shares that will go up in 2018; recommended by brokers
2 years ago
These are New Year resolutions of celebrities...what about us?
2 years ago
LIC policy that protects you from cancer... less premium, more protection
2 years ago
What do kids like... what they don't?
2 years ago
Lens resolution and not pixels make the difference in camera...unknown facts
2 years ago
What is the truth about North Korea?
2 years ago
Open zero balance account in any bank
2 years ago
Separate test for each health problem... what is known in which test?
2 years ago
Do this to increase life of phone battery, backup
2 years ago
New scooters that will arrive at your doorstep soon
2 years ago
Health insurance from banks... less premium...how worthy?
2 years ago
Has your smart phone slowed down? Here are tips to speed it up
2 years ago
Dental plaque formation, causes and care
2 years ago
Cholesterol is good...But when is it bad?
2 years ago
Make tasty panipuri at home
2 years ago
P2P platforms help easy lending, borrowing
2 years ago
Why Apple iPhone is expensive? Want it for less price?
2 years ago
Tips to cool down your heated smart phone
2 years ago
Which is better...own or rented house?
2 years ago
App that listens and types in Telugu
2 years ago
Jaundice could be dangerous if neglected
2 years ago
Sponge cake in a jiffy...no oven...with and without eggs
2 years ago
What happens when you don't repay loans
2 years ago
Yogurt, curd, dessert, paneer, cheese...what's the difference?
2 years ago
IT dept. eagle eye on bank deposits... what to do?
2 years ago
Google Tej app...transfer funds in a jiffy
2 years ago
Truths about money, you must know
2 years ago
Huge benefits with Multani Mitti
2 years ago
Advertisement 1
Video News
Bride to be Kajal Aggarwal flashes her diamond engagement ring for first time
22 minutes ago
Advertisement 36
Kapil Dev discharged from Delhi hospital after undergoing angioplasty
52 minutes ago
Allari Naresh Naandhi movie making video- Varalaxmi Sarathkumar
1 hour ago
Dussehra special: Akhil and Samantha generates fun- Bigg Boss Telugu 4 promo
2 hours ago
G Kishan Reddy speaks after launching BJP office at Vijayawada in AP
2 hours ago
Minister Botsa comments on Chandrababu
2 hours ago
Amitabh Bachchan greets Cyberabad CP VC Sajjanar on his birthday on a short a video
2 hours ago
Nandamuri Balakrishna Dasara Special Interview- Nartanasala Movie
3 hours ago
Lakshmi Manchu DASARA celebration photos
3 hours ago
Allu Arjun family DASARA celebration photos- Allu Sneha, Arha, Ayaan
3 hours ago
Ammoru Thalli official Telugu trailer- Nayanthara- Nov 14
4 hours ago
Most Eligible Bachelor Teaser: Akhil Akkineni, Pooja Hegde
4 hours ago
Dussehra Special: Garam Sathi visits Bigg Boss star Gangavva's village
4 hours ago
Viral video: Allu Arjun could not stop laughing as his kids dance like Pennywise
4 hours ago
Inspiration: Tamil Nadu village gets toilets, thanks to a 16-year-old girl Jayalakshmi
5 hours ago
Jordar Sujatha to re-enter the Bigg Boss house?
5 hours ago
14-year-old girl gangr*ped by five men in Telangana
5 hours ago
Bigg Boss 4: Samantha funny comments on Jabardasth Avinash, wins hearts
6 hours ago
Won't restore Article 370 in Jammu and Kashmir: Law Minister Ravi Shankar Prasad
6 hours ago
LIVE: PM Narendra Modi addresses the nation through Mann ki Baat
7 hours ago