Financial planning and economic security

An overview with respect to the state of Kerala, India

Kerala is considered as God’s own country due to its unique scenic beauty. The state is blessed with mountain ranges, valleys, backwaters, rivers, streams, vast plantations etc. The population is well educated compared to other states in India. Standard of living is also high. The earning capacity of each individual is high both in public as well as private sector. The labour charges are also reasonably high in all sectors whether it is in building sector or agricultural sector. But still, suicide rate of Kerala is also very high especially the whole family suicide. What are all the factors contributing to this alarming rate of suicides in Kerala?

One of the major reasons is debt of family. People are spending more than their earning capacity. To clear one loan, they will take another and later they cannot manage two ends and end up in suicide. Is this a good trend?

How to spend money is equally important as how to earn money. Earning more money will not make a person financially secure. Wise planning of our economic resources is very important. We should always take care that our expense should be less than our income, which is a very simple theory of our ancestors. This theory seems to be conservative. But today, the economists have noted that India is not that much affected by recession because of the saving habit of majority of population. Reserve bank policies also give importance that each Indian bank should have sound cash reserves though banks should encourage high debt/ deposit ratio.

It is always a good habit that husband and wife of the family have a close watch on how their income and expenses are managed. Bookkeeping can be practiced in families also, which is a common practice in business field. Those who have computers can use personal accounting software to track their income and expense. Usually common man is not interested in complex accounting software with provisions for balance sheet, profit and loss account etc. they can use simple personal accounting software like MoneyCare + where they will get useful reports with respect to their income and expense. This will in turn help them to plan their family budget properly. Proper financial planning and execution will definitely increase financial security of family and people will be confident to face any financial contingency.

Tags: Accounting software, Personal accounting software