As kids we have been trained to believe that money or too much money is not good. And some kind of negative mindset develops towards it. Well, first change all that! Money is good, greed is good...this is what you work for and this is your fruit of the hard work you put in. To put it like an economist "It functions to serve as a medium of exchange, a unit of measurement and a store of value"
Money helps you achieve your near term and long term financial goals. Let us talk of short term goals. In the horizon of the next 1-3 years what are your targets? Some examples
1. A vacation
2. A new piece of furniture for the house
3. An anniversary celebration for your parents.
4. Wife's birthday (that might need a lot more planning)
...and so on. First step - write these down. Now think of when the event needs to occur and approximately how much money will be needed for this.
Similarly think of long term financial goals. This requires a bit of patience, discussion with people at home and of course "greed" (which is not bad according to me). Again write them down. Some examples
1. Buy a house
2. Buy some specific jewelry
3. Buy a luxury sedan
4. Go on a world tour
5. Upcoming marriage (read today's Mint - Indians spend 50% of their savings on marriages)
..and so on. Again, make a list, attach a time-frame and an approximate expense. Next step will be to look at how to plan your finances based on these goals...in the next post..till then...keep writing/thinking.
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