Best Money Tips for NRIs

Are you NRI? And at the end of each month, do you you run out of money? Well, Than this article is for you. These are the tips on money by which you can track and manage your money well and in the end of the month or a year, send it to India.

1. Budgeting -

I know that Budgeting is a boring exercise but well, successful governments, businesses and households do this exercise regularly to stay rich and financially stable.

Take a paper and pencil and write down all of your possible monthly expenses. Each dollar you earn outside India should have a track record. Cut down your un necessary expenses.

2. Save Minimum 15-20% of your Monthly Income -

I know that in developed countries like USA, it is extremely difficult to do. But well, this is the only way to become financially free in the long run. If you can’t save and invest your money today than you can not be financially free in the future.

Many people argue that, but it’s not possible to save any money. Because at the end of month nothing left for the savings. Well, what you can do is, Start SIP in some good equity diversified mutual fund and every month when you receive a paycheck, make the arrangement that, some amount of money gets deducted from your bank account even before it reaches in your hand.

Initially you will find it very difficult to live on. But after 6 months, you will be adopted to do this. And Believe me, after few years, when you will see your wealth growing in your mutual funds, you will be motivated to save more.

3. Emergency Funds -

Always build the Emergency Fund before start investing. Emergency fund should be 3-6 months of monthly expenses. Emergency fund is for emergency purposes such as job loss, medical emergencies…etc.. The Emergency fund will protect your long term investments from getting liquidating in case of emergencies.

4. Cut Down your Credit Cards and replace them with Debit cards -

The commonest problem with developed countries is Credit system. The western countries of the world believe in “Buy today & Pay Tomorrow” mentality. And that’s why they scratch their credit cards like hell. Remember that, once you will become habitual to the credit cards, it is really difficult to control your emotions and bad expenses. So better to cut them down and replace them with credit cards.

5. Understand the Difference between Assets and Liabilities & Keep Buying Assets -

The main reason behind financial struggle is not understanding the difference between assets and liabilities. An Asset is something which puts money into your pocket by generating cashflow or appreciating in its price (Capital Gains).

Liability is something which will make recurring expenses and make you poor. So Always buy assets such as stocks, bonds, gold, real estate, mutual funds, businesses, web properties, art…etc….

Thus, the above are the top 5 money tips for NRIs.