We are reading the stories of many people who have earned a good amount of money in life but now struggling with a financial crunch and not able to take care of even basic needs. They are searching for work and asking for help from the people.
This is happening with many of the people who have earned crores of rupees and now struggling for a single rupee.
Why people are struggling for money in spite of having good earnings?
When we are earning the money we are always at the top and filled with confidence. We are confident about talent which is generating money for us. Same time our expenditure pattern and lifestyle becomes according to our earnings.
We are spending money as per our earnings. When we are earning 20k per month our expenses also become in the same way. When we are earning 1 lakhs per month then also our expense & lifestyle become accordingly and if we are earning 5 lakhs per month same way our expenditure pattern becomes accordingly and so on.
When money is inflowing to us we want to enjoy with all money, but we should think little for future as in present world if earning stops then no one will come to help us. Only our saved money can sustain life in a troublesome time.
Why should I save money, first I will enjoy life?
Yes, life is to be lived at the fullest and we have to explore things as much but there should be limitations to it and it will be according to earnings.
If you are living in a country where the government is giving the full coverage of social security then we can enjoy with a large part of our earnings but the countries where we do not have any social security cover which can rescues is in any bad time then creating liquid money fund is very necessary whether you are earning more or less.
What is financial Backbone?
In our body, the backbone is a very important body part without that no one can do anything. This is the central support structure of our body due to which we can stand. Our backbone helps us to sit, stand, walk, twist and bend. Same way if you have a strong financial backbone then you are flexible to do many things in life.
Any necessity to make financially strong?
A person who is the earning member of the family is having liabilities and it will continue their whole life whether small or big and it never ends. But if the person is having enough backup funds then life will be much smoother as these funds will give enough earning per month from which many liabilities can be fulfilled.
As your money grows, one fine day these earning will take care of all your liabilities. It is true it will take years to happen but if you continuously work on it then a day will come in your life when you reached a point where your need not to earn for your liabilities.
This accumulated fund and earnings will gives you a confident life which will allow you to think out of your liabilities and you can focus on your motives and the things you want to do in life for yourself. So it is very much necessary that at the right age you should achieve it and further you can live relaxed life.
How to make your financial backbone stronger?
In the present world, liquid money is the most powerful and after liquid money assets are powerful. When we are earning money, we should try to save as much as at the initial stage. Once you can able to save some money, you will see your money now start giving you a new source of income.
During the course of time, our earning also increases and parallelly our saving also increases and you will see that as your earnings are increasing your growth of accumulation of money will also become faster.
This all will happen when you regularly save money every month after your expenses and parallelly invest in such investment schemes where your money will give good returns and same time investment should be reasonably secure.
How money accumulation will happen?
Your awareness about saving and investing will only help you to accomplish your financial goals not only your earnings. Most of the people are earning good amount of money and if this has to be saved and invest wisely then it will start paying you the returns and same time this heap of money will be like your backbone.
To start with, we need to target savings and tracking our investments. These both are equally important as that will help you to see through a long way to invest your money in the right direction. We are generally saving and investing money but most of us are not tracking their money due to which their path looks unknown and not able to decide the direction of the investments. Tracking will boost your morale to save further as you can see the grown of your money.
What is the Tracking of Investments?
We are saving and investing money either in banks/institutions or for buying assets but not keeping records and this is not giving a clear picture of our investment. We do know many things of our own investments like……
- How much money do I have as of date?
- How much money do I have in which bank or Institution or Scheme?
- How much earning per month I am getting from my all investments?
- How much cash is available to me for emergency needs?
- How much corpus of retirement do I have till today?
- How much money I have invested in Real estate properties ?
- What is the present value of my real estate properties ?
- How much monthly Rental income I am getting from all my Real Estate properties ?
- How much gold, Silver …..etc I have and I kept where ?
- What is the present value of my gold, silver ?
- What is in my bank Lockers ?
- Who are the nominees of my investments & assets ?
These answers are look tough but if we have any mechanism to track our investments either money or assets, we can able to give a quick answer to all these questions. This will largely help us to decide the way of investments.
Things that can help you to achieve your financial Goals
Three things can only help you to achieve your Financial Goals and if you wanted to achieve your financial goal then you should religiously follow these three things in life.
- Tracking your investment
- Wise investing
Your focus on your financial goal will give your life freedom. So make your financial backbone stronger by following the habit of Saving, Investment tracking and wise investing.