Every person should have clear goals in his/her life to lead a healthy and wealthy life. There is a story which has happened 60 years ago, in 1963, a 29 years old professor who is teaching Accountancy in an American university asked his students that how many of them have written their goals in life? Surprisingly only 9 out of 300 students have written their goals of life on a piece of paper. Then after 30 years later. i.e, in 1993, all the students came to visit a college and they visited the same professor who is now 59 years old. He calculated the net worth of each person. It turned out that only 9 people each of whose net worth is greater than the combined net worth of 291 people. And interestingly those 9 people were those who had written their goals 30 years ago. So, it is important to have clear financial goals in your life. There are three important elements in setting up financial goals. They are

  1. SMART IT: Smart stands for Specific Measurable Achievable Relevant and Time. One has to be clear of exactly what he wants to have, how much he has to have, whether it is achievable and relevant, and when he wishes to have that.
  2. TIME IT: Goals can be immediate, short term, medium-term and long term. The task you have to do within 30 days is immediate goals. For example, buying an android phone. The task that takes a year to accomplish is short-term goals. For example, to buy a television. The goals that require up to 3 years come under the medium-term goal. Example: having own bike, travel for vacation. The long-term goals require more than 3 years. This includes, to study in abroad for a high school student.
  3. WRITE IT: It is always better to write your goals in a sheet of diary so that the goals stay long in your mind and you can achieve it.


           There is a thought that compound interest is considered the eighth wonder of the world. Compound interest earns interest on the interest rather than the simple interest which earns interest only on the principal amount. For example, a principal amount of thousand rupees for ten years at a rate of ten percent will earn thousand rupees at simple interest and thousand five hundred and ninety-three rupees in compound interest. So when it comes to investing, compound interest is always better since it allows the fund to grow at a faster rate. So you have to remind these three principles

  1. The longer the time, the more money will grow.
  2. Earlier the investment you made, better you are.
  3. Smaller savings over a long period will earn more amount.


             Everyone has to maintain proper financial records so that you can know the level of spending and savings from your income. There are several sources of income. For adults, it may be salary from the job, profit through business, and interest on savings. For college students, the source of income may be pocket money from parents, gifts received from relatives, stipends from internships, etc., and expenses may be college fees, mess bills, fuel expenses, mobile recharge bills. So it is always better to write down the financial records to use the money effectively. At the start of every month, do budget planning and save at least twenty percent of your savings. Proper planning and execution will help for the wise usage of money. In between this process, maintain financial records.