What is the best advice on finance you ever received?

Joined:	01/01/2015
Level:	Gold
Points:	41458

Well, most of us tend to ask our friends seeking their guidance on the decisions related to managing one's finances. Most of these questions involve the the tips on how to get more benefits from your investments. We do get myriad numbers of responses from people we know.
Now, you will not accept all those suggestions and dabble in something you are not comfortable with. Even then, there are some suggestions that make themselves outstanding. Have you come across any such great suggestions and tips? Why not share those effective money management tips with us here in this thread?

Techians, you are welcome to come up with your best ideas.

P.S. Please note that we expect those ideas that have been suggested by your friends when you were in dilemma and proved extremely helpful. Please do not come up with your own ideas.

Joined:	26/06/2015
Level:	Gold
Points:	15787

Points:	5

For some reason I feel I am not the right person for this . However I am managing finance pretty for last few years. Here are some of the things I learned from experience and some from advice.

1. Spend less than you earn. This way you don't end up in situations where you have to take loans and borrow money from others.

2. If it requires loan or borrowing then there is something wrong with your needs and finance equation. Your expectations and actions should be on the basis of money in hand or based on your salary. In short if you can't afford 20K phone, then instead of paying it with EMI. Buy a phone priced moderately and that you can use for long term.

3. Save money keeping recession in mind. Don't put money into sources that does not stand the recession.

4. Start with end in mind when it comes to finances. So always put some money into PPF and health insurance. This will help you in old age. Plan for retirement in parallel with your every current investment plan.

5. Don't fall into trap of equity if you don't know how to handle it. Invest only the amount that you can risk. Keep your asset allocation in such way that there is healthy debt portfolio as well.

These are some of the suggestions I got from people around and some I learned on my own with bad experience.

What is the best advice on finance you ever received?

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