Psychology Corner Guide for financial development...

        

  How we can succeed in becoming wealthy
   

      
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 donít 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 analyze 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%
 
  As Water, Money Also Follows From Where Money Have To Where Money Have Not Via Easy Routes...
   
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