Engineer's Finance

Do you often shop? Do you spend more than your income? Are you habituated to spend more? Do you have an urge to spend often? If you have answered to either of the questions as “YES” then this is for you. Read on.

I was spending like crazy once I started earning. Before I was working, I hardly spent money. I used to always think how come I started spending too much. Then I figured the answer that I earn more so I spend more. If I don’t earn more won’t I spend that much? I really don’t know. I am used to spending these days I can hardly say anything about it. But I think the truth is most of us are spend thrifts. It is not a great sign for being financially free. Whenever I spend money I never bother much about anything else other than pleasing myself. It is just for an instant and later sometimes I repent for what I did (Buying a worthless DVD!). I was just looking at the things I did and was not so happy with myself. I decided to stop myself from doing such things and I am on my way successfully in achieving it. Continue reading →

I had a very bad habit of not caring much about my money. I used to spend money but never bothered to keep a track of it. I used to withdraw money from ATM and then spend it without much thought. Whenever I used to spend money, my only intension was to satisfy myself. I never bothered about the worth of the product that I purchased nor did I bother about the value of money. I know it is child like behavior, but I could not tell myself how to stop doing it.

One day I thought, I should keep track of my expenses. (Just out of blue). I know it is weird but I did that one month. I started noting down each and every rupee that I spent. Whenever I made big purchases, I made sure that I do it using the credit card only and started collecting those bills as well. I had written down about 12 pages of my expenditure for a month. It was a nightmare figuring out what I spent on and how much on each of them. It was one hell of a job. Continue reading →

I was asked a question regarding is it worth to buy insurance products coupled with the investment option. My answer was and is “NO”. I don’t like the idea of combining products. I prefer either to have insurance or investment and not both. I was thinking over this for a long time and here is my analysis towards it.

Insurance is a tool to leverage your risk and investment is a method of making your money work hard for you and it is risky you all know that. Now combining both the products means you are actually leveraging your risk by putting your money at risk. How can that happen? Does it make any sense? Most of them think it makes sense but according to me it is not a good option at all. Continue reading →