Recently, one my old student and now a friend came to me for getting loan of Rs. 15000 for paying his B.Ed fees. He is already MBA. He recently leaved his job of Accountant after 2 years from where he was getting fixed monthly Salary of Rs. 8000. I did not give loan to him because I am against to give loan to friend. If you want to learn its reason, I have written in previous content. You can read at here.
Instead of giving loan, I say, if you had to take the decision of doing B.Ed, you should manage your salary better way. After this, you can easily pay your B.Ed fees without taking Rupee 1 from any other person. For teaching "how to manage salary?" I follow following steps. I hope, these steps will also useful for you for managing your salary.
1st Step : Make Income and Expenditure Account on Cash Basis
For this, first of all employee should make his income and expenditure account on cash basis. I have made his income and expenditure account. He got Rs. 165,000 from salary in 2 years because in starting his salary was not Rs. 8000. His total two years expenses are Rs. 2,07,900. Following is his income and expenditure account on cash basis.
2nd Step : Know Other Information
For managing your salary better way, you should find also other useful information. In my friend's case.
a) I asked whether your new source of cash is Rs. 42100. Is it your income or you have taken loan?
Ans. It may be loan or my other confidential source earning. I say, ok.
b) What is your total payable fees of B.ED?
Ans. Rs. 50,800
c) How did you collect you Rs. 35800 Except Rs. 15000?
Ans. Through loan and other source of Earning.
3rd Step : Analyze the Income and Expenditure Account
You should analyze your income and expenditure account on monthly basis. It will be helpful whether you are managing your salary correctly or not. Every new expense decision will decrease your fixed salary. So, take a time of your past expenses and analyze whether you take good decision or not on the basis of your salary. In my friend case. I think he did not manage his salary better way.
Wrong Expenses Decisions by My Friend
i) Wrong Marriage Expenses Decision
His marriage expense is Rs. 18750. He went to his friend and relatives' marriage and paid this amount in two years. I think he is fool. He wasted his time for study MBA. He did not fix his priority of need. If getting higher education is his first priority, then why he is spending big amount to his friend and relatives' marriage. He is not on govt. job. He is not getting higher earning. He is not still married. Then why he is showing his big status. He is cheating himself, his friend and his relative. All true friends and relatives are hungry of love not money. He told me that he gave Rs. 3000 to a friend's marriage because his rich friend had given higher amount in his sister marriage. I think, after getting higher education, he did not leave his narrow thinking. To gift on marriage is not competition. He can easily give Rs. 101 and I think his true rich friend would also be happy. If he paid Rs. 101 to every friend and relative's marriage, he can save Rs. 15720.
ii) Wrong Donation Decision
I think, if a person donate Rs. 1 with full faith, his donated Rs. 1 is better than Rs. 10,00,000 donation which is just showing status. When you donate with one hand, your second hand should not know what did you donated. This decision is very important For taking this need, you have to see first your basic need. Getting higher education is your basic need. He donated Rs. 18500 different times in different places. Specially, he donated for Temple and Gurudwara. He is also again fool. God is in human being not in Temple and Gurudwara and Mosque and church. If he donated same money for orphan, hungry and uneducated poor children and physically handicapped peoples and animals, I feel happy because it is real donation. God will happy because you have obeyed his order. You can donate only Rs. 1 for temple or Gurudwara, it will be sufficient because God's home sees your trust and love not your money. If you went 2000 times in temple and Gurudwara in two years, your donation expenses would be only Rs.2000. After this, you can save Rs. 16500 which you can use for your higher education. This is also donation to your self because after getting higher education your third eye open, you can serve the society with better way.
iii) Wrong Entertainment Expenses Decision
He told me that he went to see film in Mall. He went to go to entertainment tour. For this, he paid Rs. 2300. He has TV. He has mobile Phone. There are lots of park in the City. On TV, he can see free movies through DD1. Is paying Rs. 2300 more important than paying fees for getting higher education. In past, people plays game in the evening after coming from work. Can he use sport for getting entertainment. Football's cost is just Rs. 300 but you can easily spend 5 to 10 hours playing it. Is it not entertainment. After this, he can save Rs. 2000 which can use his basic need.
iv ) Wrong Refreshment Expenses Decision
He told me that he enjoyed the refreshment of cold and soft drinks and outside food. Once I faced food poison by eating outside food. I did not drink cold and soft drinks for 15 years. All are waste of money. If he ate fruits and food and juice as refreshment, I feel happy for his good decision. To give parties to friend every month is also wrong. When you have to get higher study on basis of your salary money. Your every Rupee is important. Do not waste it. Invite your friend to your home every month. Ask your mother to make food for them. It will be very less costly and healthy. This is real refreshment. You also decide what amount you have to pay. by lowing this amount, you can easily save half of Rs. 8400 which will be Rs. 4200. This amount can be used for your higher education.
v) Give Loan and You did not Get (Bad Debt)
You did give Rs. 700 as loan but you did not get. It means it is bad debt. This is your wrong decision. Never give loan to friend. If you love your friend in real sense, help him by donating Rs. 700 if you feel, he is helpless. To whom you give Rs. 700 will not return to you when you go to him and say, "I need Rs. 700, it is my earning from my hard work and I want to use it for my B.ED." So, never be fool. Real help is help to helpless not selfish. So, Rs.700 would be his saving if he did not give loan.
vi) Wrong Gift Expenses Decision
He told me that he had given Rs. 5500 as gift to friends and relative. I think, he is fool or making me fool because I know him from 10 years. He did not give gift. His given best wish is great gift to me. Rs. 5500 is big amount which he had given in the form of gift. He can save easily Rs. 5500 by saying only "happy birthday". After this, he can use same Rs. 5500 of his salary for his higher education. Now, no one his friend will support Rs. 5500 to whom he gave Rs. 5500 as birthday gift.
Good Expenses Decision
i) Good Decision - Food Expenses
he used Rs. 60000 on food for family. This is good expense decision.
ii) Good Decision - Support to Sisters' Education
He used Rs. 28100 for his sisters higher education. This is his real and good help.
iii) Good Decision - Repayment of MBA Loan
He repaid his MBA loan, this is his good decision.
4th Step : Calculate Result from Analysis I/E Account
We see that every employee take some wrong and good decision relating to consuming his salary. In my friend's case he can save following total amount if he did not pay wrong expenses.
Rs. 15720
Rs. 16500
Rs. 2000
Rs. 4200
Rs. 700
Rs. 5500
-----------------
Rs. 44620 -> Total saving buy not taking wrong decision
==========
Now, After deducting Rs. 44620 from his B.ED fees Rs. 50800, he needs only 6180. Now, this is not big amount. By small deduction in all the expenses, he can save his side to pay B.ED fees from his salary.
I also personally check that he did not use Rupee 1 for searching new employment or doing new business or new source of earning.
My Personal Advice
Instead of giving loan, I say, if you had to take the decision of doing B.Ed, you should manage your salary better way. After this, you can easily pay your B.Ed fees without taking Rupee 1 from any other person. For teaching "how to manage salary?" I follow following steps. I hope, these steps will also useful for you for managing your salary.
1st Step : Make Income and Expenditure Account on Cash Basis
For this, first of all employee should make his income and expenditure account on cash basis. I have made his income and expenditure account. He got Rs. 165,000 from salary in 2 years because in starting his salary was not Rs. 8000. His total two years expenses are Rs. 2,07,900. Following is his income and expenditure account on cash basis.
2nd Step : Know Other Information
For managing your salary better way, you should find also other useful information. In my friend's case.
a) I asked whether your new source of cash is Rs. 42100. Is it your income or you have taken loan?
Ans. It may be loan or my other confidential source earning. I say, ok.
b) What is your total payable fees of B.ED?
Ans. Rs. 50,800
c) How did you collect you Rs. 35800 Except Rs. 15000?
Ans. Through loan and other source of Earning.
3rd Step : Analyze the Income and Expenditure Account
You should analyze your income and expenditure account on monthly basis. It will be helpful whether you are managing your salary correctly or not. Every new expense decision will decrease your fixed salary. So, take a time of your past expenses and analyze whether you take good decision or not on the basis of your salary. In my friend case. I think he did not manage his salary better way.
Wrong Expenses Decisions by My Friend
i) Wrong Marriage Expenses Decision
His marriage expense is Rs. 18750. He went to his friend and relatives' marriage and paid this amount in two years. I think he is fool. He wasted his time for study MBA. He did not fix his priority of need. If getting higher education is his first priority, then why he is spending big amount to his friend and relatives' marriage. He is not on govt. job. He is not getting higher earning. He is not still married. Then why he is showing his big status. He is cheating himself, his friend and his relative. All true friends and relatives are hungry of love not money. He told me that he gave Rs. 3000 to a friend's marriage because his rich friend had given higher amount in his sister marriage. I think, after getting higher education, he did not leave his narrow thinking. To gift on marriage is not competition. He can easily give Rs. 101 and I think his true rich friend would also be happy. If he paid Rs. 101 to every friend and relative's marriage, he can save Rs. 15720.
ii) Wrong Donation Decision
I think, if a person donate Rs. 1 with full faith, his donated Rs. 1 is better than Rs. 10,00,000 donation which is just showing status. When you donate with one hand, your second hand should not know what did you donated. This decision is very important For taking this need, you have to see first your basic need. Getting higher education is your basic need. He donated Rs. 18500 different times in different places. Specially, he donated for Temple and Gurudwara. He is also again fool. God is in human being not in Temple and Gurudwara and Mosque and church. If he donated same money for orphan, hungry and uneducated poor children and physically handicapped peoples and animals, I feel happy because it is real donation. God will happy because you have obeyed his order. You can donate only Rs. 1 for temple or Gurudwara, it will be sufficient because God's home sees your trust and love not your money. If you went 2000 times in temple and Gurudwara in two years, your donation expenses would be only Rs.2000. After this, you can save Rs. 16500 which you can use for your higher education. This is also donation to your self because after getting higher education your third eye open, you can serve the society with better way.
iii) Wrong Entertainment Expenses Decision
He told me that he went to see film in Mall. He went to go to entertainment tour. For this, he paid Rs. 2300. He has TV. He has mobile Phone. There are lots of park in the City. On TV, he can see free movies through DD1. Is paying Rs. 2300 more important than paying fees for getting higher education. In past, people plays game in the evening after coming from work. Can he use sport for getting entertainment. Football's cost is just Rs. 300 but you can easily spend 5 to 10 hours playing it. Is it not entertainment. After this, he can save Rs. 2000 which can use his basic need.
iv ) Wrong Refreshment Expenses Decision
He told me that he enjoyed the refreshment of cold and soft drinks and outside food. Once I faced food poison by eating outside food. I did not drink cold and soft drinks for 15 years. All are waste of money. If he ate fruits and food and juice as refreshment, I feel happy for his good decision. To give parties to friend every month is also wrong. When you have to get higher study on basis of your salary money. Your every Rupee is important. Do not waste it. Invite your friend to your home every month. Ask your mother to make food for them. It will be very less costly and healthy. This is real refreshment. You also decide what amount you have to pay. by lowing this amount, you can easily save half of Rs. 8400 which will be Rs. 4200. This amount can be used for your higher education.
v) Give Loan and You did not Get (Bad Debt)
You did give Rs. 700 as loan but you did not get. It means it is bad debt. This is your wrong decision. Never give loan to friend. If you love your friend in real sense, help him by donating Rs. 700 if you feel, he is helpless. To whom you give Rs. 700 will not return to you when you go to him and say, "I need Rs. 700, it is my earning from my hard work and I want to use it for my B.ED." So, never be fool. Real help is help to helpless not selfish. So, Rs.700 would be his saving if he did not give loan.
vi) Wrong Gift Expenses Decision
He told me that he had given Rs. 5500 as gift to friends and relative. I think, he is fool or making me fool because I know him from 10 years. He did not give gift. His given best wish is great gift to me. Rs. 5500 is big amount which he had given in the form of gift. He can save easily Rs. 5500 by saying only "happy birthday". After this, he can use same Rs. 5500 of his salary for his higher education. Now, no one his friend will support Rs. 5500 to whom he gave Rs. 5500 as birthday gift.
Good Expenses Decision
i) Good Decision - Food Expenses
he used Rs. 60000 on food for family. This is good expense decision.
ii) Good Decision - Support to Sisters' Education
He used Rs. 28100 for his sisters higher education. This is his real and good help.
iii) Good Decision - Repayment of MBA Loan
He repaid his MBA loan, this is his good decision.
4th Step : Calculate Result from Analysis I/E Account
We see that every employee take some wrong and good decision relating to consuming his salary. In my friend's case he can save following total amount if he did not pay wrong expenses.
Rs. 15720
Rs. 16500
Rs. 2000
Rs. 4200
Rs. 700
Rs. 5500
-----------------
Rs. 44620 -> Total saving buy not taking wrong decision
==========
Now, After deducting Rs. 44620 from his B.ED fees Rs. 50800, he needs only 6180. Now, this is not big amount. By small deduction in all the expenses, he can save his side to pay B.ED fees from his salary.
I also personally check that he did not use Rupee 1 for searching new employment or doing new business or new source of earning.
My Personal Advice
Dear friend, "Remember! salary is given to you to grow yourself. If he deposited this Rs. 44620 in Fixed Deposit account, he can get Rs. 334.65 every month. If he invested same amount in any business, he can easily earn Rs. 1000 per month on this amount per month. So, dear, you are also my friend. I love you. I want to see your financial growth. Your saved salary is Gold for you which you can sell at higher price at any time. So, never consume all the salary. Fix your basic need first. Make your personal budget before paying your personal expenses. After this, you will never become beggar by demanding loan from other friends and relative.Related : 10 Benefits of Saving
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