5. Emergency fund
A reasonable amount should be set aside for any emergency. A good idea would be to keep it aside in the form of a demand deposit. This need not be cashed immediately if required. Most banks are willing to give a loan of up to 75% of the deposit amount. So whenever a requirement arises, take a loan on the basis of the deposit and avoid cashing it out.
6.Live on one income
27-year-old Alka found herself in a financial quandary after she quit her job to be with her newborn baby. This is because she and her husband had been so used to living on two incomes, that they found it hard to adjust to her new lifestyle. Try and save one income, while living on another, so you have a decent amount of savings to fall back on, if need arises. Also, in these days of job uncertainty and 'hire and fire' policies adopted by many companies, one of them may be laid off at any time. Be geared up for this by spending one income, and investing the second.
7.Little drops of water make a mighty ocean
Sometimes even a small change in our habits can lead to prosperity. Here are some tips:
Buy goods in bulk wherever possible, thereby enjoying the advantages of wholesale prices.
Always shop with a list to cut down unnecessary spending. If something is not on your list, you don't need it! So, don't buy it!
Be quick when shopping. The longer time you spend browsing supermarket shelves, the more you are tempted to pick up. Yes, spend time comparing prices, but don't spend time randomly browsing.
Don't hesitate while spending on education, and on health. Think twice and discuss the pros and cons of spending money on anything else, with your spouse.
8.Turn your hobbies into your part-time profession.
The dictionary defines the word 'hobby' as something done for pleasure in one's spare time. If possible, try and convert your hobby into a part-time job, so it not only gives you a sense of achievement and satisfaction, but also helps you earn some money to add to the family kitty. For example, if you are endowed with green fingers, go ahead and start a small nursery. You do not have to own acres and acres of land to do this. Make use of any space in the front or back of your home, of balconies, or of the terrace. If it is not at all possible to grow and display plants in your home, teach gardening, bonsai etc to others. If you stay near a school, offer after-school care. This would take only a few hours of your time. Likewise packing lunches for offices, giving tuitions, designing web sites, tailoring, baby sitting etc. are other part-time jobs that can help you earn money.
