UNDERSTAND AND PROFILE YOURSELF

UNDERSTAND YOURSELF (PROFILE YOURSELF)

The first tip for making your money work is to understand yourself. A man or woman per se is the sum total of his life experiences, learning’s, family background and thus his interpretations of things around. Understanding yourself and thus your own unique circumstances (say liabilities) and strengths (say assets) is the first step towards moving towards a secure financial well being.

In our Indian context and even before one gets his first income the list of wants (expenditures) get defined. Be it supporting your parents or saving for your sister's marriage or planning for you day to day survival. But there is no need to get bogged down with all this. By a little effort we can not only fulfill all our commitments but also plan for a better future. A commerce graduate will aptly call it balancing the balance sheet. But life is not that simple and numerical. A liability for one person may translate into an asset for the other person, as each individual is unique with his own circumstances. Hence, the first step is to understand yourself, your immediate and medium to long term requirements and translate them into your goals and leeway available within the goal (say risk taking ability). This will create a unique identity (say your profile) for you and thus help you in choosing the path most suitable for you without threatening your immediate requirements (say liabilities).

So list out your liabilities with some time reference, and hence your goals. Then list out your income with the same time reference and the shortfall is what we will plan here and I will help you to achieve and makeup the shortfall.