What is Money and money Market How does it Work?
Money Market; The term Money is taken from the word Moneta of the Latin language. The Moneta is the initial name of the goddess Juno of Rome. The goddess was considered to be the ‘Queen of the Class’ in Italy. In the temple of this goddess, the coin casting was done, it is said that the currency that was made in the temple of goddess Juno was named Moneta, which later became popular as ‘ Money ‘.
Money is a powerful commodity which is acceptable to all as a medium of payment in all transactions, i.e., currency does not only mean paper notes or coins, which are issued by the central bank and the government, but all those goods which are generally in the form of payments. : Accepted.
Important Points of Best Money Management
1. Budgeting your income and expenses.
2. Controlling expenses.
3. List of essential expenses.
4. Spending according to budget.
5. What expenses can be reduced to Savings?
6. Create Money Arrangement Budget separately for your loans etc.
7. Saving for sudden big expenses.
8. Invest your savings, i.e. investing.
In simple terms, money is something which is accepted by the people as a means of accumulation and transfer of payment prices of measuring loans through exchange and which is officially recognized, this includes metal currency, letter currency and credit currency under the currency.
For example, if it is said that any person purchases any goods from the market, he can pay the goods purchased in a number of ways including cheques, credit cards, cash, etc. And all these are the types of currency-
Types of Money
Legal Money- Legal currency is a currency which is recognized by the State as the basis of payment in a particular country. No one can accept it because it is considered an offence not to accept it. This is issued by the Government or the Reserve Bank under a legislation which promises to pay the same amount to the central bank holder.
Credit Money- Credit currency is the currency when a person pays a purchase of goods through a pledge letter cheque, bill of exchange or bank draft etc. This currency is used by individuals and business banks.
Adjacent currency is a currency in which they cannot be used explicitly as a currency even after liquidity properties. Such as bonds, government securities, denuxies, shares of the company etc.
Money Management means managing your money, how much of the money you earn on your needs, how much percent savings you spend.
Money Management is a finance management that manages the expenses, savings, etc. that Money Problem does not come to Present or In Future.
If you have Money but they don’t have management, what happens? in future
You may have seen a lot of small-scale people on their roadside who are very crowded in the shop or on the lump and earn so much that you can’t believe it, but even after many years, 99% of them have a life style.
This is because they earn money but are not able to do management and even after making a lot of money, the money problem persists.
You manage your routine life well, but if there is no management, sudden expenses come into the problem and you have to borrow money.
If we don’t manage money, we will always have a problem with money.
Money Market is a part of the finance system where finance funds are traded. That is, a place where we can purchase or sell anything by means of finance or through any other form of finance. Here are other important facts about the Money Market – what are the money markets –
Where short-term rent is sold and borrowing institutions and lending institutions inter-state transact the land. These short-term securities are in liquid condition.
Their transactions are unlikely to be lost.
Money market transactions are not in cash or currency, but in the form of credit documents. E&A, Bill, Pledge Paper, Commercial Paper, Treasury Bill etc. are examples of credit documents
The Indian currency market also includes Reserve Bank of India, Commercial Banks, Cooperative Banks, other financial institutions and non-banking finance companies and financial institutions like Life Insurance Corporation of India, Unit Trust of India etc.
The Reserve Bank of India is the apex body of the money market, which is the controlling and highest monetary official of monetary and banking conditions in the country
way to save money
1. Make budget:-
First of all, make your budget. How much income of your month is and how much is the expenses? That means keeping track of income and expenditure. Most of the people are those who do not keep track of the expenditure. They feel that the expenses are in the right direction, but it does not happen.
Every month, we spend some things that are not required. It will be known only when you start keeping track of the expenditure. As soon as you know the wasteful expenditure. Remove it from your month’s list, then make the next month’s Fresh budget. By doing this, you can control the cost of the month.
2. : Give priority to investment:-
As soon as your salary comes, separate the money for investment. By doing so, you will have limited money that you can spend and control your unnecessary expenses.
Now comes where to invest? So you invest 50% of your savings in a place so that you don’t need it for a long time. You can select mutual fund’s Systematic Investment Plan (SIP).
Your money will be safe here, as it is controlled by SEBI. Do not invest your hard earned money in Direct Stock Market by being deceived by someone. Doing so can overwhelm your money. You invest in the stock market only then. When you are fully aware of it.
Also, if you have a daughter, you can invest in the Sukanya Samriddhi Yojana. This is a very good Investment Option.
This scheme is run by the government, and is completely safe. The interest rate also gets higher than other Plan-FD, PPF, RD.
3. Interest on deposits in account:-
Invest 50% of the money you’ve made in Long Term. And how to invest 50% of the leftovers? Most people allow their money to remain in the savings account.
This is a big mistake because you get interest from 3.5 to 4%. You should invest this money in a smart way so that you can withdraw, when needed, and when you are in the bank, get high Interent on it.
For this, you can get recurring Deposit (RD). Secondly, you can get a MOD (Multi Option Deposit). You can use Auto Facility sweepy. More money from your savings account will be automatically convert to Fixed Deposit for 1 year.
The interest on this is also equal to the fixed deposit. You can also withdraw this money from ATMs in a normal way. The third way-you can get fixed Deposit (FD). You can take FD for 1 year or 2 years at your convenience.
4. Ensure the future of your family by taking Term Insurance:-
We are rarely aware of Term Insurance. Whenever a LIC Agent comes to meet us, it only tells about LIC (Indowment Plan) because it gets a good commission (up to 10%). No agent will ask for Term Insurance,
as it does not have an equal commission (1%) Get. But if you want to keep your family safe, take the name of the person earning term insurance.
5. Do not show: Avoid appearances:-
Often we have a habit of imitating others. We start spending by looking at the life style of the people in the neighbourhood. We should not do it at all. Determine your lifestyle and expenses according to your ability.
Nowadays people take Credit Card, Personal Loan by looking at others. If we use Credit Card correctly, we can save money.
But if you use a credit card to buy unnecessary things and you don’t have control over it, avoid taking a credit card.
6. Save Electricity, Save Money: Save money by saving electricity:-
It is said that 0 “Drop drop leads to the formation of the ocean0 “। This also applies to our Money Saving, often allowing us to run some unnecessary light and wings in our homes.
We are often unable to stop because of laziness. Even when we go out of the house, we keep the light switched on in the houses.
By doing so, one increases the cost of electricity, so the resolution to save electricity is broken.
We should protect us from unnecessary power expenditure. By doing so, we can easily save Rs. 200 to 300 per month. If you invest the same money in the right place, it will be in millions in 20 to 25 years.
7. Use Public Transport: Use public vehicle:-
Who have their own car. They often use their private vehicles to go to office. By doing this, you spend a lot on petrol, and your budget gets affected at the end of the month.
While you will be able to save money by using a public vehicle, you will be able to cooperate to some extent with the problem of traffic jams and pollution.
In addition, you prefer to go on foot instead of a private vehicle at short distances such as nearby markets, parks, etc.
8. Make a list for Shopping:-
Often we go out for shopping without planning. Because of no plan, they are attracted to the market and buy things that are later regretted.
We should always avoid going shopping without a plan.
Make a list before you plan a shopping and keep the same things in this list as you need. Do not unnecessarily lengthen the list.
Then only exit for shopping. Your focus should be on your list while shopping. By doing so, you will be able to control the good expenditure of the month.
9. Tax Saving: Save Income Tax:-
If you are salaried employees, you will have to tax at the end of the year. Here you should save tax. There are a lot of Investment Schemes in which Income Tax gets deduction when invested.
Which you can take under chapter 6A of 80C. To take advantage of this, you can save your income tax by investing in PPF, Term Deposit, LIC, ELSS Mutual Funf,
10. Avoid frequently-used restaurants:
Often we start looking at each other and going to the restaurant to eat outside. Food in the hotel is so expensive that our expenses increase and savings are affected.
We should try to make tasty dishes at home. It will save one money, that is how our health is also good. Sometimes you can go out to the restaurant, but keep it limited, so it’s better.
If you adopt the 10 Tips of Money Saving mentioned above in your life, you’ll be able to control your spending and save a huge amount for your