A few days back you saw the posting of a kid girl who had spoken about her financial life – and how a mess was created. So here is the solution to the problem.
Before I start, let me be clear that this write-up is not a plug for sympathy! I am just intending to share – “HOW BAD CAN IT GET?” – and how can I get out of this mess, asap?
My Comment: Well, if you leave it unattended it can get much worse!
It’s been almost a year since my dad passed away. My mom is 43, while my dad was 54, when he left us. And it was a love marriage!
My Comment: Given your mom’s age she can live till the age of say 90. This means she can live more than what she has already lived, so please prepare for a long life ahead. She needs to learn a trade or profession – right from running a crèche or being a part of a community kitchen scheme.
I am completely in love with my family, and I think, the only reason for our financial crunch is – “LACK OF KNOWLEDGE”.
Comment: This is a good learning at such a young age, congrats.
Papa always spent every penny of his income on us, for all the avoidable things we demanded! But this did not provide my family with any buffer to protect us from a financial emergency. We do have savings, but they are just not enough! Too many bills, not enough money! Problems never disappear, but the money does!
Comment: Downsize your life-style. Live within your means. Check your expenses and see what you can cut down, maybe bit by bit if not dramatically. Write down your expenses, by hand or in an excel sheet – and then take action, FAST.
I don’t remember the last time I sat down surrounded by all of my personal and financial documents and took stock of my overall financial situation, including reviewing spending, savings, future goals, and insurance.
Comment: Hey kid, this is true for most of us. We worry about risk only after the problem hits us.
Key issues of my family:
*No planning – start now.
*Delaying saving – do not delay further.
*Loans – repay asap.
*Business partnership problems – now it is over, is it not?
*Overspending – all 3 of you should reduce your spending, NOW.
*No insurance: After all the problems, I have learnt one very important insurance lesson – “Don’t wait for a tragedy to strike to have the right insurance coverage.”
Take a term life insurance for you and your sister. Take a medical insurance for all 3 of you, TODAY.
*Emotional decisions – stop making them!
Start a SIP for you and your sister, today. If your sister needs money for her MBA go to a bank (I think it is a lousy idea to think of a Rs. 2 lakhs part-time MBA or a full time Rs. 6 lakhs MBA, however it is your call).
Post Footer automatically generated by Add Post Footer Plugin for wordpress.