Know Your Money

Know Your Money

Like in every sport you should know the game and its rules before you play likewise before you make Money, you should know about money and its rules.

” Money is a source of all evil “

Most of us would have heard this at a young age, yet we are made to educate and work for it. That’s contradicting right??

In India, people learn about money management at a later age, other than a few business families. Most of the MangoPeople are financially illiterate which in turn puts them in deep financial conditions.

Money is a very important factor and a needful commodity to live a peaceful life. For all our basic needs we have to have that important commodity called “Money”

You will have money through a few legitimate ways.

1. You work for it, you get Paid and save, save and save, take time though.
2. Inheritance -Boom you are rich when you are born. Easy peasy
3. Lottery – Fast but Time and Luck

Now, let’s take the obvious way which a common man does. Yes, the MangoPeople way.

Work- Get Paid – Save- Invest – and Spend necessarily.

Financial education

It very much important if you want to be financially independent and save for your future needs.
And from where we learn about financial education because school bothers to teach you Science, Math and not about Personal accounting other than you choose to learn accounts.

Most of us learn either from our parents or copy-paste the same as what our parents did. What if your parents lack financial education, they teach you the same or you improvise on your own on the later stage.

So how you will know about your money ?? Individually, you should know your cash flow movement i.e how much money you make (Income) and how much you spend (Expense) and how much you save and turn them to assets and how much liability is left. Knowing about Assets and Liability gives you a clear picture of your personal finance. Budgeting your own finance will give you an insight into your financial position.

Once you start tracking your finance, you will analyze and plan your financials.

Start with basic of money

Slowly start few financial habits like reading the business and finance column in the newspaper which we always avoid normally, gather knowledge on bank interest, how interest plays a crucial role in your finance, what are the new ways of investments, talk to people get mentored on money-making or follow MangoPeople.

In the year 2011 after finishing my college studies, I decided to put some effort into knowing about money and to become financially independent, one of my friend suggested me to start with this book.

The Rich Dad and Poor Dad

It was an eyeopener for someone who has to start with the basics. If you are not an avid reader still, I personally recommend this book which explains the basics of money, how money functions and how to increase your cash flow and how you can be financially independent on the longer run.

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