LEARN TO KEEP PROPER ACCOUNTS - Chanukya's way

[Guest guest]

LEARN TO KEEP PROPER ACCOUNTS - Radhakrishnan Pillai

 

 

Chanakya's Arthashastra is a unique book that brings out finance procedures and

systems in detail. Some of the accounting models used by Chanakya are still a

wonder to modern finance wizards.

 

Chanakya emphasised on maintaining regular and daily accounts. For those who

mismanage the treasury, punishments were to be given:

 

" If the (officer) does not deliver the income that has accrued (or) does not pay

the expenses put down in writing (or) denies the balance received, - that is

misappropriation " (2.8.18)

 

But how do we maintain regular accounts in our day-to-day life? Well, here are

some tips for the same:

 

1. LEARN TO WRITE IT DOWN

 

Money management is about discipline. And only a disciplined man can keep

control over his accounts. People withdraw money from the ATMs and spend it

without having any clue where it went. If you do the same, you'd better make it

a habit to write down your accounts – daily! This should include how much money

you had n the beginning of the day, where did you spend it, how much balance was

left at the end of the day. Start this exercise – now!

 

2. ANALYSE IT

 

Just writing down is not enough. From time to time, look back and take stock. A

man who had no clue of where he was spending money did the above exercise. At

the end of one month he realised that he was spending nearly 60 percent of his

salary on hotel and restaurant bills. He understood where costs could be cut. He

became more aware and more conscious when he spent the next rupee.

 

3. DIFFERENTIATE BETWEEN NEED AND GREED

 

This is the biggest challenge! While buying things, ask yourself, " Is it my

need or greed " . If you want to buy a good pair of shoes – buy it. But if you are

buying three pairs instead because of discount offer, that is greed. Nowadays,

every consumer faces this challenge daily. As Gandhiji put it very beautifully,

" There is enough for everyone's need but not for one man's greed. "

 

4. BE CAREFUL WITH THE CREDIT CARD

 

As a leading financial expert had once said, " Credit card is the most dangerous

invention of mankind! " Truly, the `Buy now, spend later' philosophy can be

dangerous, unless you pay your bills in time. Else, God save you. Always

remember that Warren Buffet, the second richest man in the world, has never gone

in for a credit card.