Learn the tips to bring Financial stability in your life..

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The way I make best use of my hard earned money..

Hey guys! I hope you are doing great. Today I decided to write about how I made the best use of my money over the years that gave a sense of peace and financial freedom in the long term.

I will share all the tips because of the lessons I have learnt in different phases of my life. But before I write anything, I want to ask you something. Have you read my blogpost on “How to save money in 4 simple steps”? If not then please read that before you start with this post as it would make more sense then.

Now let’s begin to discuss what are the best ways to manage your money in the right way.


My Personal Financial Journey

Before I start talking about what you should do, let me give you a little glimpse of my financial journey and how I became my own personal financial advisor.

I come from a conservative family who knew nothing about personal finance. My mother has always been a home-maker and my father earned well but was extremely poor with money management. Because of his spendthrift habits, low business acumen and anger issues, we lost everything about 17 years ago.

Having all those incidents in my childhood, I realized quite early that I had to start earning as soon as possible. So I stepped outside of my comfort zone and started working when I was 17.

However I do want to mention that I didn’t save a penny until I was 26. It took me 9 years to learn the lesson of money management.

This came as a huge lesson for me that it is not just about making money, but learning right ways to manage money is more important.

I felt I wasted 9 years of my life in living from paycheck to paycheck. I don’t want to think how much interest I would have earned for my savings in these 9 years.

The sad part is that I am not the only one dealing with money management issue. There are many out there facing this issue.

Why wouldn’t that be? We don’t get any education in schools about money management and in my case my parents were not quite well versed on the subject as well.

It was not until I was 26, I realized that I have no savings. I did lot of research and study to understand the subject of money management and best way to grow the money. I am glad that I came across amazing people who shared best practices and motivated me to believe that millionaire game is not for rich people only.

After 26, I started investing and saving money in a more organized fashion and I saw a huge difference in my finances.

I would want everyone to know that I am just as unaware as anyone out there with respect to finances but it isn’t about the finance degree that can make you rich. It is you creating a financial goal with right attitude and taking steps to reach those goals with appropriate guidance from experts that make you rich.

Once you have earned money make sure that you let money work for you.

Having said that I want you to follow these steps right now to have a better financial future for yourself. Like START RIGHT NOW..


1. Have Financial goals

As simple as it sounds, having financial goals is the first step towards creating a financially stable future.

I remember when I created a financial goal for myself in 2016 of saving a lump sum money as a term deposit. I did everything I could within my reach to achieve that goal. I started with transferring 20% of my salary to another savings account as soon as I got my salary credited into my account. I didn’t shop for luxurious items for the year and I kept my expenses bare minimal.

Thanks to my persistence, I achieved that goal and fixed that money for term deposit. I am earning interest out of it which sometimes makes me want to pinch myself.

You can also have what you want but remember to create it in the form of goal. You can read my goal setting guide to know the exact steps to make and achieve goals.


2. Different Savings Account for different purpose

To start with savings, I want to specify that I am very disciplined when it comes to my savings. I created 30/50/20 rule for myself and I stick to it every single month.

Now if you don’t know anything about it then please visit the blog on “How I save money” where I have written about it in detail. The concept of 30/50/20 rule is that I save 30% of my salary first before spending the money. I suggest this technique to anyone who is struggling with saving money.

After saving money, my next step is to strategically make use of the saved money in such a way that I am debt free, have enough money to take care of any emergencies or building a financial stable life.

I carefully studied my financial goals and created this concept.

And the concept says that I must have different savings account for different purposes. Now this can be converted into term deposit or a separate savings account. That’s totally upto you.

The great thing about this practice is that it organizes your finances efficiently. It has helped me in building my emergency account, plan for big events and prepare to have enough cash flows and pay off the loans as quickly as possible. It is flexible and you can tweak it basis your requirement just by following the concept.

Let’s understand this concept in detail.


Savings Bank Account #1 – Saving to get off debt.

I usually keep this first whenever I am under some kind of debt or loan. It becomes my utmost priority to clear the debt off as soon as possible.

Yes, you read that right. I don’t wait for 10 or 15 years to clear the debt off through EMI’s. This is because we pay way more interest on the principle amount (amount of loan we have taken) over the years when we pay back in installments.

So I would keep this account active and put 10% of my saved money here every month.

In case I am not in debt (which has been the case most likely). I move this money to invest into savings account #3 that is dedicated for further investments in shares or mutual funds.

I love investing in mutual funds as I feel that they are the best way to make your money grow. I will try and write about equity shares in the upcoming posts, so stay tuned for that.

However I don’t want to recommend that as a product as it totally depends on the risk taking capabilities for an individual.


Savings Bank Account #2 – For Emergencies also known as emergency account

This is the most required savings bank account that each one of us needs. Emergency account is for all the emergencies that take your sweet night’s sleep.

Seriously anything that you anticipate to kill your life’s motive, please avoid as much as possible. Emergencies don’t come after telling you. They will just happen and create havoc in your finances. The best thing is to avoid them by preparing for them.

Again I transfer another 10% of my savings to this account until I have reached an year of my savings. Yes I plan for an year of my expenses in emergency account because I feel I should have that, considering the kind of responsibilities I have.

You can make your own rules when it comes to emergency account. It can be 3 months, 6 months or an year of expenses into this account. World is your oyster my friend 🙂


Savings Bank Account #3 – Save to invest your money in order to create wealth for yourself

If you have a question about passive income then let me begin by answering this question first.

Passive income is the money you are earning without having to work for it. Like money you make while you sleep.

I really like creating passive income for myself and this has been in my goal sheet for quite sometime. The purpose is that I want to have a secondary income apart from my salary from full time job, in order for me to have a better financial future.

The best form of passive income I like is investments in shares and mutual funds.

Now this might be very difficult for many of you to understand because of these two reasons –

  1. You are not very well versed with the right kind of investment. And talking to anyone who sells different policies isn’t something that I would suggest
  2. You don’t want to take risk investing your money anywhere and term deposit seems like the safest option


I had this thinking before I learnt about equity share market. Equity might sound little intimidating for many people considering it’s the high risk, high return category of shares, but I know that they are worth it.

The money invested in the equity market with time grows exponentially and creates a sustainable wealth, compared to the term deposit.

At the same time I want to say that everyone has a different risk taking capabilities. I have a high risk taking capability and that’s why I like to invest in the share market. This might not be the case for many and it is absolutely okay.

What is important is that you invest the money in order for it to grow. You can choose term deposit or other safe options available like Public Provident Funds that has a very low risk bracket.

Take advice from your financial advisor or read material to gain more knowledge on the subject. Do whatever to ensure that you are doing the right kind of investment.


3. Have a separate Provident Fund/401K account for Retirement

Provident Fund Account is the best way to save money for your retirement. I have worked mostly for the employers who straightaway gave me a PF account while joining. However people who are self employed or into their own business, you should open a PF account for your retirement.

As a standard process,12% of my basic salary automatically goes into my PF account. This money gets locked and ideally can be withdrawn at the age 60 (which is retirement age). In case of need, you can withdraw your PF before as well and there are certain conditions that are listed under the government PF website of India.

I would also like to mention that PF account is named differently in different countries. I know in US it is called 401K, but I am not sure about what it is called in other countries.

However purpose of this account is the same everywhere. It is to take care of finances of an individual during their retirement age.

I think it is an amazing way of ensuring financial stability during the days when you cannot make money.


That’s it guys! I had a great time working on this article. I know it is hard to save and curb all the cravings to shop and spend all your money. But trust me, the feeling of seeing your money grow is out of the world.

I would see you in my next post.

Till then..



Hashtag Is In

Hashtag Is In


  1. Karla says:

    I really liked this post and learned from it! I’m going to pin it for future reference!! Thank u

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