1.Pray each day before you pay

Emotional and spiritual balance will lead to financial freedom. Ask God to guide you and give you strength to follow these steps every day.

2.Make long-term financial goals

If you don’t know why you’re doing this — why you’re making sacrifices, why you’re working so hard — it’s too easy to fail. But if you set financial goals, they can help guide you even when things get tough. When you have to make decision, your goals can help you stay focused on what’s important.

3.Track every rupee you spend.

Make a weekly budget and track it Use a simple dairy to record all daily expenses. Do an analysis at the month end to see which expenses are avoidable.

According to The Millionaire Next Door, budgeting is one thing that sets the wealthy apart from the rest of us — 55% of millionaires keep a budget.

Make a tight low cost weekly expense budget and stick to it, every week, no matter what happens (only exception is a medical emergency)

4.FOCUS ONLY on “NEEDS” AVOID “Wants” and “Likes

Keep it simple. Buying only those things in your life, which are bare necessities and with out which it is impossible to imagine life. Example: fresh fruits, vegetables, milk, a pair of running shoes.

Avoid all “luxury” items without which also you can live life smoothly.

Example: car, mobile phones, shopping for all gadgets, expensive clothes, cigarettes, eating out in hotels, cable TV, movies etc

Cook food at home. Avoid going to hotels. Home food is more nutritious, more satisfying to cook and much less expensive than hotel food. You save money and time and enjoy better health when you eat home food only.

5.Save money, every day and every second (THIS STEP IS THE BIGGEST OF ALL, IF YOU FOLLOW THIS ONLY, YOU HAVE DONE IT!!)

Make it your goal to save money on every thing that you do. Make a plan to SAVE at least 65% to 75% of your net take home salary. When you face a tough time in life like job loss, then these savings will help you survive the rough patch.

6.Carry less cash in your wallet.

Do not take any credit card. Learn to do more with less. Run away from any one who offers you a credit card.

7.Avoid “Debt” completely. Never “Borrow” or “Lend” money

Never borrow money to fund your “wants”. The only time you may borrow is if you have a family and need a house to stay. In such a case, buy a small, cozy home and save money on extra maintenance and taxes. Never lend money to any friend, family member etc.

8.Never buy or lease a car or personal vehicle

Always use public transport. It is cheaper and you save money on fuel, maintenance, taxes and the cost of the car.

9.Invest all your surplus hard-saved money wisely

Don’t keep excess money in savings account. Invest every month in equity stocks or mutual funds using a SIP (systematic investment plan)

Buy mediclaim and personal accident policy immediately. Buy pure term life insurance policy (only if some people are depending on your income). Keep 6 months household expenses in a liquid / money market fund

10.Educate yourself. Get a better job or a second job.

Learn a new skill, get a better paying job OR get a second part-time job. Increase you savings by increasing income as well.

11.Give it away for the work of God.

Set your priorities right by putting generosity at the top of your list. God has given each one of us a remarkable capacity to give.

Remember, everything we really have is due to God.When we give to charitable and deserving causes, we show that we value God above every thing else.


Disclaimer: Investment in securities market are subject to market risks, read all the related documents carefully before investing.