Guest Blogger: Money Smart

This month’s guest writer is Vijai Anand. Vijai writes articles on becoming “money smart” for his website www.moneyreallymatters.com. Last year, when I started www.GivingGrinch.com, Viaji was the first person to interview me (link). This year he agreed to share his financial philosophy with my readers.


Money Smart by Vijai Anand (www.moneyreallymatters.com)


In recent months financial security has become a priority. Are you in control of your finances? Are you Money Smart?


What is Money Smart? Is it clipping coupons, being the first in line for a big sale, signing up for freebies or raffles or comparison shopping online? I don't see anything wrong with saving money, if fact a dollar saved is two earned. Need proof? Check out this article: (Link). Nonetheless, these activities do not make a person Money Smart.


Money Smart is about Making Extra, Spending Wisely, Saving Graciously and Managing Right.


Make Extra

I encourage everyone to profit beyond your job. There are many ways to make extra money. You can turn your passions or hobbies into an income stream. Visit a local farmers market for ideas. You’ll see people selling homemade soap, spice rubs, jewelry, craft work, etc. Another example is to write an eBook. Maybe you’re a musician. Put together a book of lessons and sell it online for a nominal amount (say $10). Even if only 10 people buy your book every month, it adds up to $1200/year in passive income! Bottom Line: Tap into your abilities and you will find a niche to making extra cash.


Spend Wise

As our needs grow so do our costs. We need a roof over our head, food, clothing, gas and so forth. Therefore, it’s important to prioritize how we spend our money. Always keep in mind the difference between a need and a want.

An example, if you don’t own a television, buying a new one for a reasonable price is spend-wise. If you already a have nice TV and buy a big screen set in time for Super Bowl, that’s a different story. This is not a need, but a want. Everyone has different income considerations, but the need versus want principle can be applied to purchases (and incomes) big or small.


Save Graciously

Savings are like antibodies. If you have enough you become resistant to bad diseases. Without ample savings you will struggle when there is an unplanned need for money. Remember, patience is virtue so put money away on periodic basis. If you have children, take a queue from them. You don't have to open a bank account. Use a piggy bank and every day toss in your spare change. Some people have a five dollar rule, every time they receive a five dollar bill, they put it to savings. You’ll be surprised how quick it can grow to hundreds of dollars. If you’re a “spend first, save later” type set up an automatic savings plan with your bank to ensure you only spend what remains.


Manage Right

It’s your money - you earned it - you should have some control of it. Don’t let others make decisions for you. You can take the advice and guidance, but you need to know enough to be able to manage your money the way you see fit.

For example, if you plan to buy a home or save for a child’s education you can talk to an expert, do research on the internet or discuss with peers. The point is to collect information so that you can make an educated decision on how to channel your money to meet your goals.


Money Smart

By now you’ve probably realized that becoming Money Smart is not a bunch of tricks and tips. Money Smart is about changing your thought process and taking actions to make a positive, long-term difference in your life. You can start out slowly, but be consistent.

1. Think about ways you can make extra, spend wise, save graciously and manage right.
2. Learn good money management tips and techniques from various resources (Internet, community groups, expert advice, etc).
3. Read books and magazines that focus on money management, savings ideas, etc. I recommend a few books on my site, www.moneyreallymatters.com.
4. Attend free seminars or workshops arranged by libraries, banks and financial institutions, but filter out the marketing (sales) pitch and scare tactics; take only the information you need. Remember, if a pitch sounds too good to be true, it probably is.
5. Steadily change your habits and implement the ideas and strategies you’re learning.
6. Teach your kids about money to cultivate a culture of saving.


As Lau Tuz said, “A journey of thousand miles always starts with a single step.” When you put it all together, being Money Smart is about personal financial literacy – the first step to financial security.

About the Author

Vijai Anand is a senior web developer by profession and the owner of a web design shop www.igurus.net. By passion he is a husband, father, self made investor, money mentor (pursuing his CFP) and entrepreneur. He writes freelance and for his website www.moneyreallymatters.com.