Page 9 - August 2022 Edition

Elearnmarkets.com, “It is important
for us to distinguish between ‘wants’
and ‘needs’. For instance, reduce eating
out or ordering in, and you will save
your health and wealth. Don’t change
your mobile phones frequently and
avoid following fads. Keep credit cards
for emergencies and don’t fall in the
trap of minimum payments to avoid
interest. The idea is to be conscious
of all your spending, and cut corners
wherever possible.” Frugality is a virtue
that you should cultivate.

Nothing is sweeter
Money saved is money earned
than the notification from his mother has held him in
you hear when your good stead. “My mother had a big

salary is credited bag with many pockets where she Live within
to your account. segregated her money. Each pocket your means
However, it doesn’t take long for you had a name on it—milk, vegetables, “I know every mother shares this lesson
to run through your money; and by travel, and fish. At the beginning with her child. There are probably rare or no
cases where our moms spend more than
mid-month, you’re already thinking of the month, she would put an
they have. The fact that they have probably
of friends you can borrow from. This estimated amount in each and spend
only just started using credit cards also
cash crisis, however, can be averted if from that. Miraculously there would works for them. Do not borrow to spend,
you budget your expenditure right at be money left in each pocket at that’s not great financial practice.”
the beginning of the month. month-end which my mother would
Communications specialist Ankur then use to buy something for the Co-founder and Chief

Talwar, 36, Delhi, recounts how home, us or herself. This budgeting Investment Officer, Basis
a simple finance trick he learned trick helps me keep a tab on my
money and plan better,” he says.
Remember that while you plan and use the remaining 80 per cent
for your regular expenditure, it is for meeting your monthly expenses,”
Learn to make necessary to keep a contingency says Patawari. The money that you
sacrifices fund for unexpected expenses like end up saving can be invested after
“Every entrepreneur has to have an ability medical emergencies or fee or taxes you accumulate a certain amount. If
to postpone gratification and sacrifice you have not accounted for. you believe in traditional methods
present comforts for a better future. Hence
being thrifty is a key quality. When we of investment gold is a sound mode
decided to start our entrepreneurial that will fetch you good returns. “I
journey, we did some serious introspection Carpe diem and have seen my mother save a part
on our spending habits, cut back on many living on the edge of the amount given to her for the
frivolous expenses. Lavish vacations may sound terribly household expenses. Once it reached

abroad were put on hold. Our car is now romantic, but a lack a decent amount she used to invest in
10 years old and we shelved all plans to
replace it (something I wouldn't say as of proper financial gold jewellery. I do the same today,”

proudly if I were still a banker). These planning can be disastrous. Saving says Cheema.
cutbacks were possible as I was taught the a percentage of your income is Jaikishan approves of the practice.
value of money and the need to spend it essential so that you can build a “Buy that one gm of gold every
wisely since childhood by my parents. It is
little nest egg over time. “Generally, month. As old-fashioned as it may
all thanks to them that I've been
we save what is left after spending. sound, to ensure that purchase, you
comfortable with these smaller (in
Instead, we should first save a pre- have to cut down on some other
hindsight, of course) sacrifices,”
decided portion of our income. For unnecessary expenses. By practising

Co-founder and Chief
Investment Officer, Basis instance, set aside 20 per cent as this discipline, you also build an
savings to be invested appropriately
asset,”

9 • PAGE3 LIFESTYLE • AUG 2022