Understanding role and use of Money in our life

As per Thaliyola (Palm leaf), Money is essential to live in this material world. It gives high status. In acquiring money, one has to follow certain norms. The act of money-making should not be at the expense of other people's quiet living. One should not disturb or harm others. The role of money in a give-and-take society should be to ease transactions of goods and services. It should not cause strained relationships. On the other hand it should function as a loyal servant and foster relationships. Amassing money will not bring peace or security. Instead, sharing it with people in need, gives it VALUE.

Money receiving, saving and spending requires discrimination. Create wealth to share.

Bhagavan Sri Sathya Sai Baba has given mankind three important message with regard to management of money.

1. Money comes and goes, Morality comes and grows

2. Money is Dhanalakshmi, Money is GOD, Do not waste Money, Misuse of money is evil. Have ceiling on desires.

3. Money is like a shoe, it should be of correct size i.e. Money should be of right balance. If a shoe is small in size it is difficult to wear, similarly one cannot walk properly by wearing a shoe of big size. It should be of correct size to feel the comfort while walking. Similarly, less or more money will not lead to peace and comfort in one's life. One should have balance in money.

As the saying " Happiness is like a butterfly, the more you try chasing it, the more it will elude you, but if you don't run behind it, then it will sit beside you quietly" Similarly, "Money is like a butterfly, the more we think that acquiring money is the goal of life and try to look upon acquiring money as the primary duty, the more it will elude you. Just follow the norms of money making, there will be balance in life and family.

What is the best way to manage money?

Artha Shashtra is a comprehensive treatise on a number of subjects, viz. economics, administration, ethics, diplomacy etc. It deals with matters concerning how to earn wealth, spend money, enjoy with money and to expand wealth. The author of this great work was Chanakya.

Artha Shashtra suggests a tax of Rs. 4/- on agricultural produce worth Rs. 100/- and Rs. 6/- on equivalent business income. These work out to be below the existing tax rates. Artha Shashtra strongly disapproves of government’s excessive concentration on the cities and neglect of rural areas.

Government must never spend all the money; it collects by way of taxes. Kautilya maintained that some part of the income should be saved to provide for bad times. He did not approve of the practice of debt financing. Similarly, householders must not spend in excess of their incomes. The golden formula is 25% of income to be spent on personal needs, 25% given away in charity, 25% for public and social causes and 25% to be saved for bad times, old age etc. The endeavour should be towards self efficiency. Businessmen must be devoted to their business even when profits are low. Government must maintain a buffer stock of food grains, which would be useful in times of poor harvest. Value of man is greater than any amount of wealth.

Some tips on money distribution every month. On the net monthly salary i.e. take home salary distribute

1. 10% - For God / Selfless service to needy

2. 20% - For long term savings, asset purchase. This percent of money can further distributed by investing in Provident / Pension fund or Annuities or Gold or other asset purchases.

3. 20% - Emergency / Risk Management savings. This amount can be kept in the fixed deposits and used in case of any uncertainities or emergencies. Also, some percentage should be used to take life insurance cover and medical insurance cover.

4. 25% - Non Discretionary Living Expenses. One should learn to lead monthly life with family in 25% of net income. This will ensure ceiling on desires.

5. 25% - Discretionary or Unplanned Expenses