The grand daughter of our domestic help completed her graduation recently.The lady took a lot of pains to bring this girl to graduation level.She toiled day and night and was very happy when this girl passed out with good marks. The girl soon got employed in a company with a good starting salary of around 16000 rupees a month. The Grandma was naturally very happy.But this didn’t last long as the girl started feeling that the salary was low and started telling her grandma that she wanted to look for a better option. The grand ma started telling me again to help her again as I had given a lot of leads earlier about job openings. I wanted to talk to the girl and so I called her. After the initial queries , I asked her about her present salary structure and honestly, I felt for a graduate beginner the compensation was good.Then I asked her what she was doing with the money hoping that she would have faithfully given it to her grandma .But she replied that in the 5 months since she started to earn she has given around 25000 to her. I continued to question her what happened to the remaining amount which was quite substantial she was unable to account for the same but for some stitchings here and there.Out of the remaining amount of Rs 60,000 she could recollect expenses of only 20,000 and the remaining though she was sure that she had spent but was unable to recollect.This is the case of a young girl who has just started to earn.
Why I am narrating this incident here is money will come into our lives sooner or later but we should be aware of the arrival.We should make use of every rupee in an appropriate manner in tune with our goals we set in our life. Here the process of account keeping for our income and expenses becomes very vital. All inflows like salary, bonus, contributions by other family members etc to be properly accounted as also every payment leaving us should be recorded. At the end of the month, the inflow and outflow must be totaled and tallied. Here I would like to highlight that the practice of account writing should be enjoyed realizing its importance and not as an unpleasant exercise. All amounts spent beyond a cut off amount say Rs1000 should be focussed upon and we should be satisfied that such expenses have been incurred fruitfully.
Benefits of account keeping and how to go about it, how to plan for saving? All these and much more…soon.
So far I have been writing about some of the important aspects about how we treat money, low awareness , confused thinking, not taking our children into the circle etc.. These factors though may look trivial assume a very large proportion and distort the money life at a later stage and as such all of us should first introspect whether we are affected any one or all of the above syndromes. If yes try to eliminate them as early as possible.
Now the next stage is stock taking. Even this applies to most of us.Before we wish to earn more money, grow rich and comfortable it is very important to take stock of what we already have, how far we have made use of the existing assets if some of them or lying idle as white elephants what are we going to do with them etc. Equally important is the excercise wherein we try to find out as to how our present income is spent.If we have been earning a salary for the last three years whether we were able to save something out of it?. This excercise will highlight our strong and weak areas in the financial management of our family and will enable us to initiate the necessary corrective measures.
Recently I attended a workshop on digital marketing where during the interactions the faculty put up a question to all of us. How much money do you want to make you comfortable and by when do you want it? Many of us were fumbling some amount and about the timeframe, we were totally uncertain. Now, this is the most basic question one has to ask himself if he/she is sincere in money making. All of us want money without exception.But how much?. If you have a neighbor who has a very big flat, a high-end car, lot of imported furniture etc your immediate desire will naturally be to go a step above him.You got there and by then you meet somebody who is still above you.Again you dream to go above him. This process is never ending and will cloud your thinking about your plans, goals and why not about money itself. You have a family and you know your requirements based on where each member of your family wants to lead.For example, You are young have two kids and yet to own a house. You can simply plan for the education expenses of the children and, alongside for a house.Set a time frame based on your income by when you will have the flat.Around this basic thread, you can weave your first set of financial goals like monthly savings, expenditures, investments and if necessary a housing loan.This way your thought process is clear, goals are clear and you can proceed in a systematic way toward your planned goals.
If we ever observe the farmers just before the onset of monsoon season they perform certain basic activities before the actual sowing starts. They remove all the leftover of the previous crop residues. They remove the unwanted grass.They irrigate the dry land and add natural manures etc so that the land is ready to accept the fresh crop and grow well. So also if we are to accumulate wealth including the money we have to remove all the unwanted inputs and nurture the money thought with fertile good feelings. We should realize that money like any other tool is just an instrument and can’t do anything on its own. The second important thing is while welcoming money into our life Greed should be avoided and nothing should be done borne out of Greed.And finally, the journey you choose to earn money should be honest and legal and should be able to stand scrutiny at a later stage if the situation so demands.
Before we proceed to talk about money and the ways to bring it into our life it is important to remove all the unwanted, negative inputs that have entered our mind and already conditioning our thoughts about money.This cleaning includes cleaning of our mind, thoughts surroundings, workplace etc so that fresh and correct opinion about money is keyed in and the subconscious mind starts to accept the same. If we sit out and make a list of what all we have heard about money in our life so far from our parents, elders, relatives, movies books etc we will a long list of negative remarks about money.But at the same time, everyone wants to have tons and tons of money.Is it not amusing? So it becomes important to have a dispassionate analysis about money and place it in the right place before any serious attempt is made to welcome money into our life.
When I decided to have my own blog and write about money I started to scout for a suitable domain name connecting money. I could not get a satisfactory .com domain.So I decided to have a slightly lengthy domain name and also I wanted to add something to money such as Life, Relations etc because here I wanted to share some of the vital lessons that life has taught me through various people, places, and other happenings.,. Then I made it moneyandmany.com. Though mostly I will be talking about money I will be also talking about some of the basic rules and discipline one has to follow for better quality in life.Elders who lived before us have left enough wisdom for us to pick up and lead a happy life.
But with life changing dramatically over a period of time and today all of us running very fast without really being aware as to where and why we are running I thought it is my duty to just place before the learned audience the small but meaningful adjustments we need to make things better once again.Your valuable feedback and suggestions are most welcome on this journey of mine and the baby steps I have already taken.
The whole house is festive. Ram and Vidya are very happy.So are the elders.People come and go.
Sweet aroma of sweets,jalebis…flowers..a very pleasant atmosphere indeed.You are in the cradle.
In a few minutes they are going to give you a beautiful name by which you will be called thereafter for ever.
You are smiling ,laughing,waving your hands, kicking your legs and each of your movements makes the people around
you very happy.
The pandit arrives.Every one settles down. .Panditji performs poojas ,sprinkles the pooja water on you.After some
more small rituals he asks your parents to tell you your name slowly in your ears.And now the happiest parents
bend towards you and they chant AISHWARYA….Yes the family has decided you to name as Aishwarya..which means
wealth,money,happiness..the elders want you to be blessed with all good things,money,gold,happiness and what not..
You are Aishwarya henceforth..The guests come one by one with the gifts packed nicely give it to your parents..
Your uncle places a golden anklet…Close family friend gives you a silverware..some others thrust five hundred and hundred rupee notes in your hand..you hold them for some time not realizing a what it is…can”t blame you..
You don’t realize that it is money and it can do many things for you. Ironically it is not only you,but your parents,me,my friends and the majority here do not realize what is money and grow up as such and become miserable
Dear Aishu,you should not be like them..You should become a money magnet as you grow up.
I will be with you all along,hand hold you and let us together enjoy money matters.
During my childhood days merchants will come home to buy our agricultural
products such as paddy,groundnut etc as and when the harvest is done.Out of the harvest
elders in the family will decide about the quantity to be set aside for our consumption and the
rest will be earmarked for sale.
Once the merchants come bargain will start and the person offering a better rate will
finally take the produce.Our father will get the payment those days may be a couple of thousands
but all in small denomination notes so that it looked a huge payments.I being a young kid will always want to
count at least a part of it.But the elders would have nothing of it.It was a strict NO No for children to
even touch them.Family ladies will tell many stories about money mostly negative so as to divert our
attention away from money. I Know it was the case in most of the families here during those days and even today
elders don”t encourage children to understand money and its functions.
How do you then expect them to deal with financial habits like savings, investment, financial assets etc
as they grow older.It is therefore in our own interest that youngsters should be encouraged to know
about money and its attributes as early as possible.
Recently i talked to some friends of my daughter who frequently come here to meet her(college level children) regarding some elementary money matters.
1.difference between savings and investment.
4.How the elders meet the expenditure
5.saving habits in the family.
6.some basic banking operations.
unfortunately a majority of them either did not know what was happening or were not aware fully.In all cases the parents have not been forthcoming to them to discuss about these issues.This is what happens in most of our households in India where parents think they should not talk about money matters to the youngsters and it is bad for them.On the contrary the earlier the children are introduced to money and related aspects it will be better for them and the families too. There is no structured study on money in schools and children first come to have an idea of all these only around 17/18 years when they are in college.till then lots and lots of negative inputs enter them about money and cloud their thinking hampering their decision making in money matters in later life.
Most of us in our younger times used to wonder what is black money,is it really black?As we grew older and older the black money also grew with us larger and larger.we pay a medicine for Rs 100 but don”t take the bill and allow the shopkeeper to generate some black money by withholding a portion of the sale proceeds from the tax authorities. We sell a part of our assets but donot fully account the sale proceeds and pay the applicable tax only on the accounted portion.Here we generate black money…the chain grows and to the extent that this process impinges on the revenue to be honestly going to the Goverment.Also we create an inequality among ourselves into haves and havenots all pointers of future disasters waiting to happen.Let us resolve to keep the color of the money in white only..let the Government print the notes in any color.