Mind Your Money.... A Strategic Guide to Financial Freedom

7/28/2019 Mind Your Money.... A Strategic Guide to Financial Freedom

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MMIINNDD YYOOUURR MMOONNEEYY

AA SSttrraatteeggiicc GGuuiiddee ttoo FFiinnaanncciiaall FFrreeeeddoomm

BY HARIS HAMSA

First Edition


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Copyright 2006. Haris Hamsa,All Rights Reserved

A NOTE TO THE READER

THIS PUBLICATION IS DESIGNED TO PROVIDE ACCURATE ANDAUTHORITIATIVE INFORMATION WITH REGARD TO THE SUBJECT

MATTER IS COVERED. IT IS SOLD WITH THE UNDERSTANDING THAT

THE PUBLISHER IS NOT ENGAGED IN RENDERING FINANCIAL,

ACCOUNTING, OR OTHER PROFESSIONAL ADVICE. IF FINANCIAL

ADVICE OR EXPERT ASSISTANCE IS REQUIRED, THE SERVICES OF A

COMPETENT PROFESSIONAL PERSON SHOULD BE SOUGHT.

All rights reserved. For permission to reprint or reproduce

any portion of this book, please contact the publisher.

Published by

H2 Publications,

My Home Mount view Apts.,

Navodaya Colony, Yallereddy Guda

Hyderabad 73

Andhra Pradesh

India

Cover design by

Printing and page design by

Edited byProf. Raghava Menon


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To

Blessed Memory of My Grand Father


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Acknowledgements

My sincere gratitude goes to my parents first, especially to my mother.I have nothing in my life to substitute with your unconditional love and

care. I really love you both.

To my wonderful sister and her husband, thank you for being an

inspiration for me.

To Mr. Gadda Naveen (M.D., Navanomi Realty Project, Hyderabad),this would not have been possible without your support and

encouragement. Thank you very much.

To my teachers, thank you for molding me as a life long student.

To my editor , Prof . Raghava Menon, who has shown

much pat ience of a sa int throughout my many addit ions,de let ions and revis ions.

I also want to thank the authors, speakers and mentors who continue

to have a great effect on my life.

Thanks to all, you are a true blessing, your help made it all possible

and I am truly grateful for your support.


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CONTENTS

Acknowledgements

Contents

Preface

Whats in this for you

1) Financial freedom

Financial BondageWhat is financial freedom?

2) Compulsive Spending

Some guidelines for rational spendingSmart purchases

BARGAIN??? YES!!!

How much percentage of your income you can spend?

Increase your income

Career Choice

3) Budgeting

First Steps to Budget

Daily Spend Record

Monthly Budget Sheet

Budget Counseling

4) Debt Management

Debt.What is that?

How people fell into debt?

Signs of Caution

Good News

Consequences of being in debt

Credit Card


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Advantage of Credit Card ownership

If you are behind

When should I start to worry about my

debt? 5 steps to reduce Debt

Some practical steps to escape from debt

trap

5) Saving

Objective of saving

Objective of Investment

Eggs in the basket

Retirement Plan

Unique issues for women

Schemes and Scams

Protect Yourself

6) Last Word


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Preface

Thank you for selecting this book. I hope the ideas in this book will help you as much as

they helped me and others. I also believe that this book will make your financial life

brighter.

Time is never late to take corrective and preventive measures to get into the world

of financial freedom. Whatever may be your present financial status, it is absolutelypossible for you to make your life financially secured by following the principles

described in this book. You can gain the control of your finances and your life by

changing the way you manage your money. You can exercise your freedom to abstainfrom activities that undermine the financial well being of you and your family.

It is possible that you might already have knowledge about these principles. But this book

will give you more awareness and teach you how to implement it effectively to get betterresult.

All the principles, techniques and ideas are logical, proven and practical. Each and every

strategy in this book is focused on increasing your financial stability, check the outwardcash flow and accelerate your journey to financial well being.

The faster you learn and apply them in your life; you will be distancing yourself far awayfrom the nightmare of financial worries

Wish you all the success

Haris Hamsa

Hyderabad, A.P.December 2006


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Whats in this for You

The great aim of education is not knowledge but act ion- Herbert Spencer

Dear Reader ,

Just imagine that now you are f ree f rom a l l debts , and

f inanc ia l worr ies . Try to th ink about the f reedom and peace o f

mind you would have in such a s i tuat ion. Th ink v iv id ly even

about the smal l deta i ls that would do to mark that wonder fu l

moment . Of course i t wou ld be a great t ime to re jo ice and

ce lebra te . A l l th rough our l i fe we are long ing for that

spectacu lar moment . Unfor tunate ly major i ty never exper ience

that in the i r l i fe .

A l l o f us can lea rn o ther behavio rs f rom a young age, too -

l ike how to hand le money. We observe our parents and the


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wor ld around us and come to some conc lus ions about money

management . The three main bad hab i ts adu l ts deve lop in the

area o f f inances are :

A cons umptive life s tyle Poor budgeting (or no budget at all) Debt

Our lack o f knowledge, coup led wi th lack o f ac t ion, has

le f t us f inanc ia l ly squeezed. Only 3% of the Ind ians ac tua l ly

have a f inanc ia l p lan. Only 1 .2% of teachers thought that they

had enough t ra in ing about f inanc ia l issues a t the academic

leve l . Debt has become a way o f l i fe fo r many ind iv idua ls as

wel l as our nat ion. The fo l lowing quota t ion summar izes the

d i lemma. First we are manipulated into buying what we

don t need. Then we can t pay for i t . Then we don t even

have a p lace to put i t . Then we don t have t ime to use i t !

Learn ing to mange your f inances is a journey that w i l l

take pat ience, p lann ing and the constant recommitment to do

what you ac tua l ly want , no mat ter what everyone e lse do ing. I t

is tempt ing to th ink that abundance in weal th w i l l answer every

prob lem. But many people , who have much weal th , wh i le


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ach iev ing f inanc ia l independence, do not exper ience f inanc ia l

f reedom. I do no t cons ider f i nanc ia l f reedom as the amass ing

of huge sums of money or o ther possess ions. Fortune does

not equal f reedom . Financ ia l f reedom is be ing f ree o f worry

or concern about f inanc ia l mat ters . I f you have no cho ice in

mat ters that a f fec t you f inanc ia l ly , you do not have f inanc ia l

f reedom. I f your e th ics t roub les you because o f the manner in

which you have obta ined your f inance, you do not have

f inanc ia l f reedom.

How th is book wi l l HELP you?

This book does not cover the deta i ls o f var ious types o f

bank accounts , mutua l funds or share market . From th is book

you wi l l the get the log ic and wisdom to hand le your money

ef f ic ient ly . Th is book wi l l p rov ide you some exce l lent ideas to

escape f rom debt t rap. Through some s imple and pract ica l

s teps you wi l l f ind how to make a month ly budget , how t rack

your expenses, how to nur ture the hab i t o f sav ings, how to p lan

your re t i rement in advance e tc . Most impor tant ly i t w i l l g ive

necessary gu idance for anyone, who wants to escape f rom the

deep f inanc ia l c r is is , w i th proven, rea l is t ic but s imple s teps.

The goa l o f th is book is to he lp you to d iscover your

sabotag ing behav iors so that you can avo id f inanc ia l p i t fa l l and


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ge t on the pa th to p rosper i t y . The s t ra teg ies w i l l he lp you make

the most o f your f inanc ia l resources through wise investment

and avo idance o f scams, schemes and debt p i t fa l ls .

How to USE th is book?

Mark the po in ts !

Make some deta i led ac t ion po in ts a t the end o f each

chapter .

Af ter comple t ing the book, summar izes your ac t ion po in ts

for the ent i re book on one paper . Keep i t as handy so that

you can look a t i t week ly and check th ings o f f as you ac t .

Reread the ent i re book a few weeks a f ter you f in ished the

f i rs t read ing. We never grasp every th ing in one read ing.

Most impor tant ly app ly i ts pr inc ip les ! Stop do ing th ings

that dest roy your f inanc ia l l i fe ! Jump in to the ac t ion zone

so that you may have br ight f inanc ia l fu ture !

Documents

Mind Your Money.... A Strategic Guide to Financial Freedom