"Most people spend more time and energy going around problems than in trying to solve them." —Henry Ford
I told you to keep log of your expenses in THIS post, Are you keeping the log of your expences?
The easiest and the most effective way to save more money is to keep a log of your every spending. Stop whining about the problem and start acting as Mr. Henry Ford have said.
Majority of people just neglect the main problem, i.e. the mismanagement of money. The solution to this mismanagement is to accept the responsibility of our own problem. Start finding solutions in ourselves, start controlling the expenses. Soon you will realise the problem getting sorted out.
People usually when faced with money problem never try to go to the root cause of the problem, i.e. their own spending habits. Rather people resort to the solutions provided by the financial institutions. The esiest sounding and the most deadliest solution is the LOAN. I heard people saying that "It is not possible to enjoy life without taking loan now a days, everything is so expensive." In reality things are not that expensive. People only persive things to be expensive. If you have sufficient patience and control over your money then you can easily get to the things you wanted without the need of taking loan.
I am not against taking loan, I am aginst taking loan for buying depreciating things, things which lose value over time or things which need lots of money to maintain or things which don't earn you any money or things which have no use, but just a fancy item.
Loan if taken for financing the right investment i.e. the investment which have very high probability of giving returns far exceeding the interest money you have to pay on loan and that too within the tenure or maturity period of the loan. But the catch is it requires a lot of knowledge, experience and wisdom to find such an investment. Professional real estate investors make good use of borrowed money many times.
But for common people like you and me the loan is a bad thing.
So start paying of your loans as soon as possible. The ugliest (loans with highest interest rate) loan. should be the first in your closing list. For exaple credit card dues have the highest rates and charges so the ugliest they are.
If you have a loan liability you will unknowingly feel a burden on your shoulders. You will realise it when that burden is off your shoulders.
The most interesting, also the most rewarding part is that you will feel more mental peace than ever once this loan burden is off your shoulder.
Our journey as a logical thinker is not just to amass the wealth but also mental and emotional well being, family well being, society well being. Our aim is to be a wiser person every day than yesterday, being a valuable asset to out society.
Keep up with your journey and achieve what you want.
Sumit
The POWER is when,
you use ODDS
to get EVEN..
