Today, I created an excel called “Financial Turmoils” on my present financial condition. Surprisingly, i am in a big trouble than what i had anticipated. With debts amounting to over a lakh, this self-realization is a bit late.
I am another victim among many of my age. We do not save but spend. And more often, our expenditure shoots beyond our limits which we barely notice. Who are to be blamed? Credit cards, insufficient coaching on money management in schools(where they teach all useless stuff under the Sun but how to live). I do not have an answer, but a word of caution.
If you are about to join a job and have a credit card and you spend, better do the following:
* Create a simple excel sheet of your projected expenditure till the financial year-end (including rent, food and other misc expenses).
* Check your cash inflow and decide how much you can spend. Open a new account (SBI lets you open accounts with as less as 1000 bucks).
* Start depositing as much money as you can in this account and make sure you don’t carry a debit card of this account with you.
* For credit cards, make sure you keep apart the money you are about to spend, else, the bills accumulate and you end in a debt row.
* And never ever convert purchases to EMI. You will be in big soup.
This is on account of experience, play safe people.