What middle class families should do to have financial peace?

Nirmal K. Rewaria

Being middle class brings with it a fair share of stress and strain. Cash is perpetually in short supply though credit is always available on demand. There are EMIs to be paid, educational expenses for the kids that always piling up and of course, spending due to peer or societal pressure never ends up which left us with no or miniscule savings.

Hence it is not surprising that most middle class households find themselves in debt and loss of financial peace. We see stress at middle class households which is result of frustration of not being able to match up with peers being it husband, wife or even children.

Here is a middle path for middle class to get financial peace resulting into more and more happy families.

The Middle Path to financial peace:

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Nirmal Rewaria

Co-founder & CEO|FinPeace

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1. Always define a saving target:

After investing your defined savings you should manage your expenses from the balance money left over. Start this habit from your very first salary and keep at it without exception. When a person starts his career s/he is single and whatever earns is more than enough. This is the time where the spending behavior inculcates due to impulse buying, peer pressure and self-aspirations. Now a days the peer pressure’s most influencing medium is social media through which we come to know about good things of people connected to us like travel, gadgets, new car etc and such things bring inferior complex and then we start matching with them. This results into unnecessary spending.

2. Be tight-fisted while spending:

Sometimes we are in so much hurry that we forget to find better options and compare the product features and price. Looking at grand showrooms ambiance or highly paid sales people’s effective talks at counter we refrain to either bargain or look for other options of comparison. I suggest that always compare the price at online websites or other shops and pay the best price while spending your hard earned money. End of the day each penny saved is earning an extra penny.3. Stop impulse purchasing:

Window shopping, credit cards in wallet and peer pressure are the main root cause of impulse purchasing. While we roam in malls we like something and at that time we just buy that item without putting a second thought whether do we really need this at that time or can we afford. I suggest that we should be cautious while doing window shopping at malls and always apply a second thought before buy anything. Make it a habit to buy things you like only after a week after you see them. The time so spent will ensure that you will think over it again and buy only what you need.

4. Always look for more opportunities of earning:

Everybody says s/he does not get time but this is a myth. We should look for more opportunities of extra earning by utilizing our spare time. Peer or societal pressure has become integral part of our lives and we have to follow such pressures. By having extra earnings we can reduce this to some extent.

5. Always inculcate saving habits in your children:

Nowadays kids easily ask for money for petty purchases from their parents. This is because they don’t know how much efforts go in earning that Rs.100. Always inculcate saving habits from an early age. Make children aware about the efforts needed to earn. This will reduce spending pressure on us as most of the spending happens due to children’s emotional pressure.

6. Use your credit card only in emergencies:

Avoid credit card calls on your mobile with plenty of benefits. Having more than one credit card may lead into debt trap. Yes, we should have a credit card but only to use in emergencies. In normal course use debit card only.

7. Always secure family by buying adequate term life insurance cover:

Do not scrimp here as this is a small price to pay as black swan events can derail our best plans for family.

8. Make family aware about your investments and assets:

Always discuss finances with spouse and kids. Never keep them in the dark about the financial assets which have been built for their better future

9. Opt for professional services for estate planning:

There are professional organizations which handhold family in getting ownership claims of all assets and investments should something happen to you. Always subscribe to such a service to ensure your assets go in right hands at right times when your loved ones most need them

(Writer is CEO & Co-Founder to FinPeace Technologies)