Hello guys, hope you all are well.
I took some time from my busy life just to write an article about some of the financial management basics everyone should know from my experience. In life, fate can drop you in Chaos any second and you will be strangled with the necessity of money and unable to bare the situation.
We all may think after our education and whatever academics when we finally land a job or fed up with the education and opened a business, we think our problems are solved. But the reality is the opposite.
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Some people may already start with problems in job, some may get after job. But, how we manage through with it actually matters. In my experience, when I joined my job, there were no extra problems and life was going smoothly.
Upto one year it was pleasent and with only pressure from work side and that too manageable. After that my life started making that drifting pass through the corner of the road. Then Health problems were started in the house, from that point onwards my life took drastic turns like in the ghat road section.
At first, I was able to take care of that with money. But, in taking care of your health, there is no first time, there will be plenty of times you need to approach a doctor and follow as per the procedure.
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Second time, I was a bit of short on money and I had to take loans from the bank to take care of it. At that time so many people told me to take a health insurance policy. But my dumb brain didn't listen to them and discarded it.
After that just a couple of months, again the health problem hit us, there I had no choice to take another loan and take care of it. Like this it happened three or four times again and in a blink of an eye I was in deep debt from which I didn't recover up until now.
From the above circumstances I realised one thing, first thing you have to have a health insurance and a life insurance for any emergency. They may seem fraud, but, they will give a hand in complicated situations.
The next one is always try to close a loan with high interest if you have any extra money and try to pay as much as principal amounts as extra to free yourself from the debt in future. Gold loans are good nowadays with low interest.
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You just have to pay the interest for a year and then you can renewal it. Paying interest only may give you some air for adjusting your monthly expenses with your salary.
Nowadays you can invest as much as 10 rupees from phonepe, in my opinion investments are better than saving, one problem may sweep your saving and like that one market down may decrease your investment value, but they will there. Compounding of interest do wonders if given some time. I'm treating Hive platform as my investment.
Finally, I just wanted to say that these are my personal experiences and situations may differ for others. One thing may be clear that money plays a key role in your life and don't treat it like you have now, treat it like what if you don't have tomorrow.