People
who have no money
People who are not successful in gaining wealth always
happen to search for money and tend to have a stressful
mind thinking about their financial future. They are
often trapped into leasing or taking loans and happen to
follow behind people who have money. These people don't
practice proper economic management in their life. Being
satisfied with what we have is not always practical as
there is always a chance we can face misfortune in our
personal life, our career life, our businesses or in the
natural world.
People who have money
People tend to be calmer and more relaxed when they
possess a sufficient amount of money. This allows them
to take life decisions with a clear mind. They don't
have fear about the future and have a fresh mind,
allowing them to produce creative ideas. They can invest
extra money in learning new skills, buying properties,
depositing it in a bank or starting up new businesses.
As a good practice, they calculate daily loss & profits
in a book. Wealthy people always separate a certain
amount of money as insurance for their life and
properties.
Discipline of saving
Saving money with the bank is considered to be the main
step in becoming rich. We need to have motivation and
discipline in order to regularly save a fixed amount of
money. It must be considered as a necessity in the same
way as purchasing food. It is recommended to save at
least 10% of your total income per month. Saving money
can also be regarded as Financial Independence because
it helps to make our mind free. We also need to think
about how we save, such as depositing it in a bank
account, buying land, buying property or purchasing gold
etc. When we deposit money with the bank, they then
invest this money by giving loans to micro businesses
and corporate projects. Hence, investing money with the
bank directly helps to develop our country towards
prosperity.
Dealing with Banks
It is important that we take the right approach when it
comes to dealing with banks or other financial
institutions. Normally with banks, we can maintain three
types of money accounts. These are - Savings Accounts,
Current or Cheque accounts and Fixed Term Deposits. With
the use of ATM cards, people nowadays regard savings
accounts as the same as current accounts. Current
accounts are used mainly to perform daily money
transactions whilst any leftover savings is not
considered to be in that account except in the case of
collecting money from businesses or from a salary.
Savings accounts are used to keep savings as a way of
self discipline. Hence we need to restrict the
withdrawal of money via ATM cards. It is suggested to
take enough money for a week as a good habit to restrict
spending when handling ATM cards. If you need to take
money from your bank account, always use your current
account instead of your savings account. Depositing a
fixed amount from your monthly income into a separate
savings account is one way to encourage good saving
habits. Fixed term deposits are another way to
discipline our mind and our spending habits, enabling us
to steadily save while earning higher interest rates
from banks or other kinds of financial organizations.
Common types of Financial Traps
1. Investing with illegal financial institutions,
insecure banks and fraudulent people.
2. Purchasing lands and homes which have illegal
documents and are conjoined with law cases.
3. Gold or instruments which do not posses true
chemicals compounds or internal components.
4. Leasing or loan advertisements which force borrowers
to pay back with excessively high interest rates.
5. Having long term faith in winning lotteries is also
potential financial trap created in our mind.
Leasing and Loans
Many people take on loans without thinking how they are
going to pay it back. Some people take on loans relying
on uncertain future plans such as earnings from a
foreign job, incomes from new businesses or with an
insufficient salary. It is not suitable to undertake
loans or to lease if your intention is to obtain fancy
things. Loans or leasing should only be taken for new
investments. As example, if we need a new investment of
Rs.100, then we must have 75% with us, which is not
included from the loan. We should expect to use only 25%
of our total needs from leasing or loans. Also the 25%
we acquire from the loan must be saved in the bank and
should not be used in the investment. This amount is
required to pay back the loan, in case you are unable to
earn funds from your investment as initially planned. A
lot of people take loans because of attractive
advertisements. But ideally we should always remember
that undertaking loans & leasing helps to give us added
mental stress, physical sicknesses and can potentially
cause family problems too.
Handling Credit Cards
Bad usage of credit cards is another way people tend to
waste or lose money. Credit or debit cards can make our
money vanish easily within minutes. Online purchases,
shopping in super markets and foreign traveling can all
contribute to us wasting money if we do not know our
limits. Credit cards can create money, so mentally we
don’t identify it as another kind of loan. To save money
from spending excessively, we want to keep a monthly
limitation on our card purchases. We also need to take
care in paying our credit card bills on time in order to
avoid interest collections. Before we go to the super
markets, we should prepare a goods list after consulting
with family members. Always collect bills and analyse
extra purchases beyond the list. This will help to
reduce going over your budget in future. Maintaining a
family or personal money book is also another good
method to keep track of spending. Essentially, we need
to have self-discipline in order to avoid extravagant
spending.
Money and Personality
1. Richness is relative state which means a rich person
in a village can be a poor person in a suburban town.
2. With extra money, extra social acceptation and
bravery can be earned.
3. Rich people attain a positive mind, luxurious life
and have a nice appearance.
4. Rich people have the opportunity to gain fresh ideas
and meet new mentors.
5. When we have extra money, we have more free time to
do activities such as meditation and merit activities.
Ways of wasting money
1. Spending unnecessarily on lust such as buying
clothing, meals, entertainments, etc.
2. Undergoing expenses without taking into account any
financial planning & analysis in your daily life.
3. Paying for services & goods which can be done by
yourself, such as shaving in a saloon.
4. Wasting time thinking negatively about the past -
wasting time means wasting money.
5. Understanding religious concepts in the wrong point
of view, such as - about saving money.
Ways of being successful with money
1. Use your land to cultivate vegetables, cooking
spices, herbal trees, flowers and fruits rather than
buying those things from the shops.
2. Read books related to successful people and affluent
companies, then write down their tips to become wealthy.
Try to understand their weak points.
3. Undertake an extra job, become self-employed on a
part-time basis or as a family business during the
evening times or holidays.
4. Prepare a simple home based lost & profit money book
related to daily, monthly and yearly expenses. Analyze
it every weekends.
5. Give donations with a happy mind from your monthly
income to poor people, priests, gods & monks.
Buddhist Saving System (BSS)
Think as your total monthly
income is Rs.100, then separate your funds as following
:
|
Monthly Family Expanses |
Invest Again in Business |
Savings for Future |
|
25% |
50% |
25% |
Sample
Personal Economic Management System Per Month
Consider your monthly income is Rs.100, then keep your expanses as
following :
|
Daily Needs |
Savings |
Investments |
Hobbies |
Merit Works |
|
60% |
10% |
10% |
10% |
10% |
|
