How to Manage Your Finance Better

Few days ago, one of my friend had gone to hospital and he had no money to pay the bill of doctor which was Rs. 20,000. Before going to hospital, he spent Rs. 5,00,000 on his new bought house. Is it good management of finance. You have spent all the money on your bought house and no money for your emergency. This is not the case of my friend. This is the case of your friends also. There are lots of community in the whole world who do not know better management of finance. That is the reason, today, I have taken this topic and explaining, "How to manage your finance better?" In this content, I will teach you simple and easy steps to manage your finance with better way.

 (A) Smart Budget

1. Create the Budget for Emergency Fund

There are lots of emergency situations which we can not expect. For example, road accident or any default in your vehicle or need emergency money for your friends, family or relative. You are becoming so intelligent in the field of finance. So, every month, you have to make the budget for your emergency fund. This emergency fund should keep in saving account only. So, you can use it when you need it. It must be minimum 5% of your total earning. But, you can not take this money in normal need. When you supply your emergency fund for emergency cases, you feel satisfaction. For example, if you have per month earning of Rs. 100, you must save Rs. 5 for emergency fund. You also make the list which you can say as emergency time.

2. Create the Budget for Saving 

Today, you have the energy in your body. Tomorrow, you will not enough energy in your body. But, your expenses will not stop. So, you need passive income. You can only earn passive income from your investment. For investment, you need big amount of saving. For saving, you need to create the budget for saving. If you have to manage your finance better way, you must save minimum 10% of your month's earning. Second, it will help you to survive in case of inflation.

3. Create the Budget for Donation 

This earth has been made by God. You are the earning because God loves you. You can increase this love if you will create the budget for donation for helpless. Following are main non-profit projects where you can donate.

a) Donation for education for helpless and needy
b) Donation for food and protection for helpless animals
c) Donation for plants

It is better use of finance because

a) You will get the blessing of God. With this, your finance grow fastly.
b) In future, you will also get the support if you have given the support to other.

3.  Create Your Family Budget for Expenses

Make the list of blank paper about your main expenses. It may be food expenses, electricity bill, internet bill, mobile bill, medical expenses, repair expenses and petrol expenses. Now, check your average per month income. If your estimated expenses are more than your monthly average income, you have to cut the amount of your monthly incomes.

 (B) Smart Expenses 

To spend the money on different expenses is science. If you want to learn for better management of your finance, you need to learn better spend money on different expenses.

1. Buy Own or Rent 

We are lots of capital budgeting tools. With this, you know which is better, buy your own asset or get it on rent. For example, banks mostly do its business on rented building. Why? Has bank no money? It is not true. Bank knows the better management of its finance. It has analyzed the cost and profit and it will be more profit if it will do the business on rented building.

2. Spend Own Capital or Money on Loan 

Today, there are lots of way to get cheap loan. You can get loan through your credit card. For one month, there is zero interest on your loan amount. Sometime, return on your capital is very high. At this time, you can use the money on loan as substitute capital. Your own capital can double your return on investment.

  (C) Smart Investment 

1. Invest in Real Estate

It is long term investment. After 10 years, your invested money will increase very fastly. So, buy minimum one property in your life as your investment.

2. Invest in Mutual Funds

It is also called safe stock investment. You can invest in liquid or sip plan of mutual funds.

3. Invest in Stock 

Never become gambler for fast buying and selling in stock market. Invest it in long term.

4. Invest in Business 

Best is to invest in your own business. It will give you surely reward all the time when your brand will grow in the world.

Sources and Citations

1. Tips for Better Management of Money eBook
2. Financial Management Notes eBook

Related Articles 







access account accountant Accounting accounting definitions accounting ebook Accounting education accounting procedure accounting process outsourcing Accounting Software advance advertising africa Amalgamation amendments announcements Annuity assets audit auditing Australia B.Com. balance sheet bank Bank reconciliation banking basic accounting BBA benefits best bill black money blog bloggers book keeping bookkeeping Branch Accounting - full tutorial budget Budget variance business businessman CA calculator canada capital capital budgeting career cash cash book cash flow statement Chiense children china class coaching coins college commerce commerce students company computer computer accounting conference Contact vinod kumar Control Your Spending corporate accounting cost cost accounting cost center cost centre CPA credit credit card cs currency data Debit and credit debit cards debt debtor degree depletion depreciation Diwali Messages documents dollar domain Downloads Dubai e-accounting earning education Education Loans email employee EPF ERP euromoney examination excel excise duty expenses facebook factor of loan fans feature fifo FII fiji finacle finance Financial financial accounting fire insurance flickr flow forensic forex formula france fraud free fun function fund GAAP GDP gdr germany gold goodwill goodwill accounting google google apps Google Adsense google apps google base google buzz google calendar Google docs google finance google fusion tables google talk govt. GST guide health Hindi Hindi Language history holding company How to treat FBT in Tally 9 HRA ICAI ICAWI ICICI Bank IFRS income income statement Income Tax India indian railway Indonesia inflation inflation accounting infographics information inspiration insurance insurance accounting Intangible interest international Internet Introduction of Tally 9 inventory investment investment in Shares invoice IT Japan Job costing journal entries Journal Entries eBook Help Kalculate keyboard kindle kuwait laptop law LBT learning lease lecture ledger leducation Leverage Analysis liabilities lifo linkedin loan logical point loss loss of profit M.Com. m.phil malaysia management accounting manual accounting manufacturing account market marketing mastercard material MBA MCA media migration mobile money ms word ms. excel multi currency in tally 9 Multicurrency Accounting mutual fund national security new and sacrifice ratio new york times new zealand news NGO nonprofit-accounting North Georgia Mountains NPV NSE odbc office oman online application online accounting Online Accounting Course otcei pakistan parents Partnership pay pal pdf Personal Finance pie chart pie chart of income pnb podcast ppf presentation price privacy policy prize money prof. vinod kumar profit profit and loss account project management provision purchase puzzles quickbooks Quote quotes quotes of svtuition rating agency ratio analysis RBI readers real estate rectification of errors remote control reports reserves responsibility accounting retirement revenue Revenue reserves review risk rupees salary sale saudi arabia saving sbi scholarship school SEBI security service tax share share trading Shares shri lanka singapore sms social accounting society solution South Africa stock stock exchange structure student students study subsidiary company svtuition swiss bank tally tally 9 Tally 7.2 Tally 9 Tally.ERP 9 tanzania tax Tax Accounting TDS teacher teaching technology test testimonial testimonials thailand tips trading trading on equity transaction trend trial balance truthfulness tuition twitter UAE UGC - NET Commerce UK United Arab Emirates university usa valuation VAT Video Voucher and vouching Wealth wikipedia working capital youtube
Accounting Education: How to Manage Your Finance Better
How to Manage Your Finance Better
Accounting Education
Not found any lecture VIEW ALL Continue reading Reply Cancel reply Delete By Home PAGES Lectures View All RECOMMENDED FOR YOU Category ARCHIVE SEARCH ALL Lectures Not found any lecture match with your request, please help to write it and send it to our email at for making this website free accounting and finance encyclopedia. Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS CONTENT IS PREMIUM Please share to unlock