Monday, April 02, 2007

KEEP THE MESS AWAY FROM YOUR NEXT FINANCIAL YEAR

Tips below are really easy and helpful to keep you away from financial troubles..

Track your money: Check your bank statement every month and make notes against each entry in pencil. So when you finally present these to your CA, you’ll know exactly what each entry is about—15 minutes every month is all it takes. But it will save you hours of work at the end of the year. Do the same with your credit card statements.

Keep income and expenses in separate boxes--literally: Get two shoe boxes—in one put all your bills, in the other your pay slips, dividends and any other income in the other. And impress your CA further by presenting her with the two boxes at the end of the year.

Joint account for common expenses: If you have a partner who contributes to expenses, open a joint account where each of you contributes a fixed amount every month. All common bills can be paid out of this and you can holiday with what’s left.

A kitty for the house: If you own your own place, it’s likely to need repairs from time to time. Start a recurring deposit where you tuck away a small sum every month—when the big bill comes, you won’t feel the pinch quite as much.

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