How to Spend Money Intelligently

It is old saying if you spend less, it means, you are making the habit of saving of money more. Today when there is decreasing income sources of middle class family, it is good time to spend limited money intelligently and wise.

Moreover, it will help you to rich in young age. Because the money you saved by spending intelligently, you will have enough resources to invest and start to earn passive income in young age.

Food, Clothes, Water and shelter are the necessary things for life. So, people spend them foolishly.

(A) Less Use of Submersible Pump for Water 

Submersible Pump has big moter. Every time when you switch on for getting water through submersible pump, you have to spend money on electricity bill.

You can decrease its cost by becoming more intelligent

(i) Keep Drinking Water in Container and Drink by Using Container

(ii) Keep water in Big container for cloth washing and cleaning utensils. With this, you can save electricity bill for switch on every time to wash or clean. Moreover your submersible pump will require less repair if you keep water in big containers.

(iii) Use Raining Water. It will decrease your electricity bill. This summer, I kept water of rain in my big container and use it for cleaning my utensils and washing my clothes and saved my electricity bill.

(iv ) Use more Hand pump for saving the electricity bill. From last 20 years, we have used hand pump to save lakhs of rupees electricity.

(B) Make Food in Home

If you will start to make food in home, it will deem your intelligence to spend money. Because with this, you will save money. If you eat food in Indian dabha, you spend Rs. 50 per day for three times, you will spend 150 and for 30 days Rs. 4500. If same food, you will make in home, your cost will not more than Rs. 60 per day and for 30 days, you will spend only Rs. 1800 and you will save Rs. 2700

(I) Try to use Forest Wood and you will save cooking gas monthly bill.

(II) Grow your Veg. in your kitchen garden and save veg. food cost.

(III) In home, you have to keep animals for milk and you get free milk, curd and desi ghee.

(C) Use Cotton Clothes

If you will wear cotton clothes, it will save you from skin diseases. Moreover it is cheap from other varieties and you can make it also in home by using charkha.

(D) Try to Make Your Own House

Still, there is no need of big money to make own house in India. You only use your brain. You only break trust of registry.

(i) Try to buy land of Vakaf board, this land, you can get Rs. 500 per gaj and easily spending Rs. 50,000, you can acquired 100 gaj for making your own house in India.

(ii) Do labour work and save Rs. 400 labour cost per day for construction of your house.

(iii) Try to buy second hand bricks and use malva for uplift your house instead new bricks and bajri

(iv) Instead of lenter, try to gader and wood lenter. It will also save your cost.

Extra Tip : Spend money to buy Solar Penal for saving electricity bill

MIS means post office monthly income scheme. It gives you monthly interest even you are not earning money due to your accident or disease. It is your passive income. For earning active income, you need to be healthy and active. In life, it is not all time possible. But for your personal treatment, you need money all time. So, you have to save money for MIS instead Emergency fund.

For example, today is your health is good and you are active and you are earning Rs. 25000 month in job in a good company. Your home expenses are just Rs. 12500. Now, next Rs. 12500 open RD in bank account and within 3 Days continually save money, you will Rs. 450,000+ money in your pocket.

Now, Just go to post office and save RS. 450,000. Now open MIS in post office and every month, you get interest in your post office saving account with 7.6% interest.

Every month RS. 2850 will interest and keep it in RD account in bank which can break anytime. For example after 3 years, you have faced accident and for operation, you need Rs. 100,000 and in your saving account, there is already Rs. 102000+ saved money from MIS interest from post office plus Rs. 4,50,000 is already saved as investment in post office MIS.

One of side effect of keeping emergency fund in home, it will not grow. But if you are intelligent, you can earn both MIS scheme and RD scheme.

I have a friend. He earned the money from his selling business. He did not save money and spend all money for surviving his family of one wife and two kids. Even, he has consumed his raw material cost for personal use. Now, his both pockets are empty. Now, he is unable to buy new material for selling. No ability to buy raw material for sale means no ability to earn money from business.

He got idea to take loan. This is his fool idea and he told that he is so intelligent. Because he is calculating

If he is taking loan of Rs. 4000, he has to pay Rs. 98 as 3.2% interest to bank. Means, if he will use Rs. 4000 for 30 days, he will pay Rs. 4098 at the end of 30th day.

I can bet of Rs. 1 Lakh, he will eat also Rs. 4000 at the end of 30th day because he did not break the bad habit of useless money spending. Now, his rating will zero and no bank will give debt to him and bank will file the case on him for not giving their debt.

Now, he will go to private person. Private person will take 5% interest + security. If no security, he will not get no new loan. So, he will live stressful and this stress brings lots of physical pain and diseases. Because he will not get any hope of loan from any lender in this world.

So, here how can become intelligent.

Not take loan. Do job and earn money and invest this money in the business. Never use business investment for personal use. Keep personal budget to stop useless expenses.

Are you earning good money but nothing saving in your bank account. It means, you have the addiction of buying immediately after getting job or business earning. It is not your financial intelligence or better management of money. You can learn to overcome this by learning following tips

(i) Today buying Goal delay after 30 days. It is my practical tip. After 30 days, it is my challenge, you say same expenses that it is not necessary and you can win your useless buying of personal things.

(ii) I have told my bank to automate deduct my pension fund. So, my bank deduct every month. So, I save myself from useless buying.

(iii) Try to repair if possible instead buying new every time. Every new will old every day but you will loss your money to foolishness if you buy every time when anything old or need repair. Repair is cheap than buying new thing.

(iv) Try to buy second hand.



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Accounting Education: How to Spend Money Intelligently
How to Spend Money Intelligently
Accounting Education
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