money management skillsNow, we have looked at 3 articles about expensive life in America. But, why do so many people, students prefer to study in USA?

In spite of all these expense, amount of money you can save is more than what you can expect to save in back in your country (say India). Before reading this article, refer to some of the comments in Part 1 and 2. There are several negative reactions. Do you know reason for negative reactions?

Short-Term Thinking : You are thinking about amount of savings and ROI right after graduation. But, you have to think long-term like

  • What is the value of your education for your entire life?
  • What is your ROI several years from now?
  • Consider long-term salary, not your first year or first job salary.

You have consider salary increase into account.

  • Higher Salary != More Savings
  • Money Management = More Savings

You need to develop good personal finance and money management skills to save lot of money.  Following tips should give insights to saving LOT of Money in USA plus develop essential money management skills

Basic Money Management Skill

Its’ ok if you don’t track every single penny you spend, but at end of the month, you should know

Moderate Money Management Skill

  • Learn about Stock, Options markets
  • Invest wisely in 410(k)
  • Following Financial  Markets
  • Understand various Savings options available

Advanced Money Management Skills

  • Invest to multiple by several folds (not 1% or 2% interest)
  • Invest with understanding
  • Dedicated learning to invest  not just in stocks)
  • Think like Businessman!

Super Advanced Money Management Skills

  • Working for an employer is not going to make you rich ( majority of you)
  • Self Employed or Starting Business can fast track you to financial freedom.
  • Make use of other people’s money and time to make more money

From my experience, making money is completely entirely different from investing money. Most folks tend to think of making money as having a job with decent pay check. But, there is other side to it. Making money as an entrepreneur.

If you are not an entrepreneur, it’s time to become one. Our parents generation were able to struggle and make it with single source of income and career.

But, today’s fast paced world, having multiple streams of income is how future looks.  Having an extra set of skills will come in handy at time of need. Plus, no matter what profession you belong, the present economy doesn’t favor a single career in a one life time.

With Basic to Moderate money management skills, your life is likely to be financially dependent.

Even with Advanced Money Management skills you are likely to be depended on pay check to run your family.

To become financially independent, you need to develop super advanced money management skills.

Money Management Article Series


  1. Dyna Wilson on October 16, 2013 at 5:09 AM

    Informative post.Applicable in every aspect of life.

  2. Nandhini on October 15, 2013 at 4:49 PM

    I liked the idea! What you said is 100% right. Many think of expense when considering a grad school program and I consider that to be an INVESTMENT in life.

    However, at the end of the day, we essentially need to have money management skills.

  3. College Focus on October 15, 2013 at 3:01 PM

    Wonderful post, these are all great things to know not just for every day life but for your career as well.

  4. anonymous on October 15, 2013 at 1:25 PM

    How much money you can really save in India
    im talkin abt avg profile student with Btech
    Entry level salary for engineer is 3.4 lkhs P.A
    If he get job in any place other than his home city , he’ll end up paying 5000/- rent per month and 2500/- for food
    If he owns a bike , 2500/- pr mnth ( If bought on own salary , extra 2000/- for finance)
    personal expenses – 2500/- Per mnth
    travelling home 5000/- per year
    entertainment , tax deductions , expenses for parents or dependants – 70000/-
    what actually do u save by end of year 90000/-
    if you are a party type of guy , deduct 20000/-
    any accidental costs 10000-30000/-
    gold you buy – remaining
    cash in hand – 0/-

  5. Prabhakaran on October 15, 2013 at 11:49 AM

    OK. The post is good.

    But doing A Masters in Engineering or Science, especially a research based program requires one to be strongly motivated to research, and not money. At-least during the time of study.

    And, to be an entrepreneur you need a lot of money, not just ideas. I think so…

    Anyway, it is just my opinion. 🙂

    • Raghuram Sukumar on October 15, 2013 at 12:21 PM

      To be an entrepreneur you just need idea. Good idea gets funding. If you want to be like me – blogger, you can be profitable from Day 1.

      • Prabhakaran on October 16, 2013 at 1:28 AM

        I don’t know. A blogger making money from day one? That is awesome!

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