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Money mantras for the young and working

Last updated on: November 24, 2009 13:57 IST

In this day and age of 'quick' money, it is important for youngsters not to lose sight of a few basics in managing their money. Presented below are five must follow mantras.

ake a print out, write them down, whatever; but do not lose sight of them.

1. Set your financial goals

Be it planning for future studies, buying a car or a laptop or a pool table -- identify it and put a monetary value to it. You can achieve your goals only if you systematically save for it.

www.investmentyogi.com is a one-stop personal finance website which helps in managing finances, investments and taxes through services like financial planning, online tax filing, budgeting and 'Ask the Expert'.

2. Buy an insurance policy

Last updated on: November 24, 2009 13:57 IST

For those youngsters who have dependants, insurance is a must.

However, we generally undermine the importance because we are young. The sooner you get insured, the better. It will also work out cheaper because of the age factor.

3. Spend less on your credit cards

Last updated on: November 24, 2009 13:57 IST

The plastic money is very convenient and most of us prefer this to actual money.

And since it is convenient, we tend to overspend. Do make sure you read the fine print before using your C-card lest you be unpleasantly shocked to receive the bills.

Do not forget the basic rule, 'Don't spend what you don't have'.

4. Think 'future'

Last updated on: November 24, 2009 13:57 IST

It is never too early to start preparing for your future; plan for your retirement now, the sooner you start the better it is for you.

You will be able to see the power of compounding, when you start investing small sums of money, but still see it grow gradually to the amount you set as target.

www.investmentyogi.com is a one-stop personal finance website which helps in managing finances, investments and taxes through services like financial planning, online tax filing, budgeting and 'Ask the Expert'.

5. Invest regularly

Last updated on: November 24, 2009 13:57 IST

There are various options for investing your money.

One of the most popular and rewarding options is to invest in mutual funds. There are a variety of options to choose from (equity, balanced, debt) and also a variety of fund houses.

Also, most of the fund houses have fairly easy procedures for systematic investment plans (SIP).

SIP is a simple process of investing the same amount of money every month over an extended period of time, regardless of whether the market is up or down.

Money-matter mantras:

Set your goals
Do not spend what you do not have
Start saving for your goals- small but systematically
Postpone your expenses, not your investments