IDEAL FINANCE MANAGEMENT FOR YOUNG PEOPLE

Money is key factor for many aspects, minimum necessities, comforts, luxuries and or for other mind-deserving enjoyments. The incoming earning either thro employment, returns on accumulated properties, trading or other vocational aspects is the limiting factor for spending, saving and investing for multiplication of resources for the use of self, spouse, parents, children or even for next generation.
The individual perceptions are unique and the ideal finance management aspects have to be TAILOR made inconcurence with the perceptions of each person, each family and group.
However in the previaling situations especially in INDIA, SOUTH-EAST ASIA or for that matter identically economic zones in the world, there are broad parameters which the citizens expects and needs broad guidelines for the effective management of their income and other resources.
The human life span ranging between 60 to 70years on an avarage in the above geographical zones. The earning capacity is mostly confined betwen 25years to 50years. The free enjoyment thrills are confined btween 22 years to 30years. The social and family obligations/compulsions increases proportionate to the age increases. The self and dependent health maintaince expenses will be growing much disproportionate to the advancing the age after late 40s or from 50s.
In the emerging necleous family establishments in the above geographical areas the love, affection and above all concern is showing negative trend which was not prevalent in the earlier years.
All the above factors have to be kept in mind while starting planning and managing process of the resources both existing and earning right from the day one earning process begins.
With the globalisation of various factors linked to money, there are umpteen options to manage the finance aspect by each individual, family or group. If the earning plus yield on existing resources is Rs100/-., (Maximum income restricted to Rs20000/-)

a) not more than 10% of the resources to be earmarked for comfortable (rental) accomodation or maintaincce of existing accommodation to suit the present living standards

b) livelihood depends on the number of members under the earning team- however not more than 20% out of Rs100/- may earmarked to aveage family in ordinary society.

c) The cost of mobility of all members may be confined to 5 to 10%.

d) Earmark 20% of the resources towards present education or future education of the next generation right from the day one of earning.

e) Depending on the thrillness of the family, earmark not less than 10 to 15% towards insuring the life of breadearners in variably which generaly gives low yield at a future date to the policy holder.

f) There is element of direct income tax deductable from earnings which may be around 10% of the total income.

g) There is a surplus of 20% after meeting the minimum needs of the family. This surplus is to be used with care and due deligence to get high returns. High returns are always linked to high risk factors. This point is is to be analysed carefully applying own brain plus others since the scope is very wide and marketing personal are after us. One has to prioritise the choices with least posible risk aspects. The following points may be considered depending on the interests and family background

1) BUY A HOUSE WITH THE ASSITANCE OF BANK LOAN. TIEUP THE REPAYMENT WITH REGULAR INCOME SOURCE. STAY IN THE HOUSE OR LETITOUT.... Adds house rent, saves payment of house rent and appreciates the value over a period of time. Risk element is minimum or rather nil since the loan itself is insured for the house.

2)If there are house properties bequethed from ancesstors. Moderate the house with bank loan and follow point no. 1.

3) If there are many houses and are moderate. If not interested in the property.Insure further your life, children life, spouse life with such a policy that that generates income either for children higher education, children marriage which are must; or take pension policy which generates income on monthly or regular intervals to meet unforseen expenditure after late 40s; 50s and after not fit for earning income to lead independent remaining life with grandchildren and children.This aspect covers RISK ITSELF.

h) If income is growing by virtue of various factors, go for little comforts at home and at travel and also simultaneously think of venturing investing in HIGHYIELDING MUTUAL FUNDS only with reputed mutual fund agencies with proven experience/background either in growth fund or dividend aspect depnding on the needs of once own/group.

i) If invested in mutual funds, review the growth trend after first year, 2nd year and maximum third year.... mostly it may increase by three times or four times, Then liquidate, retain the profit after taxes and again invest in fresh mutual funds which are available on PAR rates. The concept is: One takes to time of 1 or 2 years to become 2 or 3; but thereafter growth rate may not be same; hence liquidate and again invest on AT PAR funds.

j) Still once own income and accumulated sources are more than comfortable. Study online trading initially not less than three to six months either in person or thro business news closely

k) Invest in industries whose production is always on demand/use by the general public with due assessment of managerial aspects of the promotors.

So Young guns ..Keep managing your financials.