Money- Lesson 1: Setting Priorities

Top things to know

1. Narrow your objectives.
You probably won't be able to achieve every financial goal you've ever dreamed of. So identify your goals clearly and decide which are most important, and why they matter to you. By concentrating your efforts, you have a better chance of achieving what matters most.
2. Focus first on the goals that matter.
To accomplish primary goals, you will often need to put equally desirable but less important ones on a back burner.
3. Be prepared for conflicts.
Even worthy goals often conflict with one another. When faced with such a conflict, you can sometimes choose by applying criteria like: Will one of the conflicting goals benefit more people than the other? Which goal will cause the greater harm if it is deferred?
4. Put time on your side.
The most important ally you have in reaching your goals is time. Money stashed in savings accounts or invested in stocks and bonds will grow and compound. The more time you have, the more chance you have of success. Your age is a big factor -- younger people (who have more time to build their nest egg) can act differently than older ones.
5. Choose carefully.
In drawing up your list of goals, you should look for things that will help you feel financially secure, happy or fulfilled. Some of the items that wind up on such lists include building an emergency fund, getting out of debt, and paying the kids' tuition. Once you have your list together, you need to rank the items in order of importance .
6. Include family members.
If you have a spouse or significant other, make sure he or she is part of the goal-setting process. Children, too, should have some say in goals that affect them.
7. Start now.
The longer you wait to identify and begin working toward your goals, the more difficulty you'll have reaching them.
8. Sweat the big stuff.
Once you have prioritized your list of goals, keep your spending on course. Whenever you make a large payment for anything ask yourself: "Is this taking me nearer to my primary goals -- or leading me further away from them?" If a big expense doesn't get you closer to your goals, try to defer or reduce it.
9. Don't sweat the small stuff.
Although this lesson encourages you to focus on big-ticket, long-range plans, most of life is lived in the here-and-now and most of what you spend will continue to be for daily expenses -- including many that are simply for fun. That's okay -- so long as your long-range needs are also provided for.
10. Be prepared for change.
Your needs and desires invariably change as you age, so you should probably reexamine your priorities at least every five years.

PUT THE GLASS DOWN......An imp lesson for life!!!

A professor began his class by holding up a glass with some water in it.He held it up for all to see; asked the students,' How much do you think this glass weighs?''50gms!' .... '100gms !' ......'125gms' ......the students answered.'I really don't know unless I weigh it,' said the professor,'but, my question is:What would happen if I held it up like this for a few minutes?' 'Nothing' the students said.'Ok what would happen if I held it up like this for an hour?' the professor asked. 'Your arm would begin to ache' said one of the students. 'You're right, now what would happen if I held it for a day?' 'Your arm could go numb, you might have severe muscle stress; paralysis; Have to go to hospital for sure!'ventured another student; all the students laughed. 'Very good. But during all this, did the weight of the glass change?' asked The professor. 'No' the students said.Then what caused the arm ache & the muscle stress?'The students were puzzled.'Put the glass down!' said one of the students.'Exactly!' said the professor.' Life's problems are something like this.Hold it for a few minutes in your head; they seem OK.Think of them for a long time & they begin to ache. Hold it even longer & they begin to paralyze you. You will not be able to do anything.

It's important to think of the challenges (problems) in your life, but EVEN MORE IMPORTANT to 'put them down' at the end of every day before you go to sleep. That way, you are not stressed, you wake up every day fresh & strong & can handle any issue, any challenge that comes your way!'

All those people who work over the weekends, late nights --Just Give a thought

Son: "Daddy, may I ask you a question"

Daddy: "Yeah sure, what it is?"

Son: "Dad, how much do you make an hour"

Daddy: "That's none of your business. Why do you ask such a thing?"

Son: "I just want to know. Please tell me, how much do you make an hour?"

Daddy: "I make Rs. 500 an hour""Oh", the little boy replied, with his head down.

Looking up, he said, "Dad, may I please borrow Rs. 300?" The father was furious, "if the only reason you asked that is so you can borrow some money to buy a silly toy or other nonsense, then march yourself to your room and go to bed. Think why you are being so selfish. I work hard everyday for such childish behavior" The little boy quietly went to his room and shut the door. The man sat down and started to get even angrier about the little boy's questions.

How dare he ask such questions only to get some money? After about an hour or so, the man had calmed down, and started to think: "May be there was something he really needed to buy with that Rs. 300 and he really didn't ask for money very often!" The man went to the door of little boy's room and opened the door. "Are you asleep, son?" He asked. "No daddy, I'm awake," replied the boy. "I've been thinking, may be I was too hard on you earlier", said the man, "It's been a long day and I took out my aggravation on you. Here's the Rs.300 you asked for"The little boy sat straight up, smiling "oh thank you dad!" He yelled. Then, reaching under his pillow he pulled some crippled up notes. The man, seeing that the boy already had money, started to get angry again. The little boy slowly counted out his money, then looked up at his father. "Why do you want money if you already had some?" the father grumbled. "Because I didn't have enough, but now I do," the little boy replied. "Daddy I have Rs. 500 now. Can I buy an hour of your time? Please come home early tomorrow. I would like to have dinner with you"

MORAL OF THE STORY It's just a short reminder to all of you working so hard in life. We should not let time slip through our fingers without having spent some time with those who really matter to us, those close to our hearts.

If we die tomorrow, the company that we are working for could easily replace us in a matter of days. .................

But the family & friends we leave behind will feel the loss for the rest of their lives. And come to think of it, we pour ourselves more into work than to our family....