The document outlines 11 steps for financial discipline: 1) Spend less than you earn through small cuts, 2) Create and stick to a budget to track spending and savings goals, 3) Contribute to a retirement plan for a relaxed old age, 4) Save 5-10% of salary each month by eliminating discretionary spending, 5) Do not finance purchases for longer than the item's useful life, 6) Consider buying used items to save money, 7) Diversify investments across different areas, 8) Invest wisely and avoid schemes promising high returns with little risk, 9) Teach children the value and proper use of money, 10) Start saving now for children's education to prevent future stress, and 11

1. Financial Discipline

2. 2
Step 1 – Spend less than you earn
• Little cost-cutting effort in a
number of areas can result in
big savings.
• It doesn't always have to
involve making big sacrifices.

3. 3
Step 2 – Stick to a budget
Budgeting is needed to know
• Where your money is going
• Clearly know your spending and
saving goals

4. 4
Step 3 – Contributed to a retirement plan
Retirement is
• Long term investment
• Relaxed old age.
• Self reliance at old age.

5. 5
Step 4 – Have a savings plan
• Resolve to set aside a minimum
of 5% to 10% of your salary for
savings.
• Identifying and eliminating
some discretionary spending.

6. 6
Step 5 - Don’t finance anything for longer than its useful life
• Why continue to pay for
something- a car, a vacation, a
television- that you are no longer
able to use and enjoy?
• Purchase on credit only when
buying a long-lasting asset with
short-lasting financing.

7. 7
Step 6 – Consider Purchasing Used items
• The opportunity cost of
saving for tomorrow is
spending (and enjoying!)
today.
• It might give the same
service as a brand new
item.

8. 8
Step 7 – Diversify
• Don’t put all of your
eggs in one basket.
• Diversification is the
practice of holding a
large number of
unrelated assets.
• Invest your money is
many areas.

9. 9
Step 8 – Invest Wisely
• Beware of investment
schemes promising high
returns with little or no risk.
• Do not allow yourself to be
forced into a quick decision.
• Beware of investment
frauds.

10. 10
Step 9 – Teach your children
• Teach children money is earned.
• Teach your children how to earn
money and spend it wisely.
• Money both helps us get what we
want, AND helps others get what
they want.

11. 11
Step 10 – Save For Your Child's Education Now
• To prevent future stress on family
finances.
• The earlier you start, the more
chances you have to save.

12. 12
Step 11 – Prioritize Your Health
• you can very quickly lose everything
you have saved when medical bills
start taking over your life.
• Select a policy that will cover your
basic medical care costs as well as
the costs of the unexpected expenses
that can arise with health issues.

13. Prepared by
Manu Melwin Joy
Research Scholar
SMS, CUSAT, Kerala
Phone – 9744551114
Mail – manu_melwinjoy@yahoo.com