Sameer, an IT professional, starts his month with Rs 35,000 being credited into his account. In the first week itself, he pays off his bills and rent and other essential expenses, he often treats himself in fine dines and clubs, he's a generous soul and doesn't mind paying for his friends' share at times. However, towards the end of the month, he is often seen seeking 'udhaar' from his friends, to meet his basic expenses. And this is his routine for almost every month.

And Sameer is not an exception, there are so many people who are living a life similar to Sameer's. And this salary to salary approach is generally seen in young people who are early in their careers.

So, are you also among one of those who start their month in riches and end up in rags after 30 days. Are you too living Sameer's life?

Young people are stuck in the mess, primary because of excessive spendings, their love for gadgets, fashion, expensive food, better lifestyle, and in the pursuit to have all of it, they end up spending much more than they should. Mismanagement of finances, extravagance and a living in the present approach is creeping into the young blood.

The repercussions are:

1. You don't save for your future goals. A living on the edge approach doesn't let you grow and achieve your goals, because you are stuck with making both ends meet, at the end of every month.

2. You aren't prepared for emergencies , you might end up losing the job and in absence of any savings, it'll be about survival.

3. By the time you'd realize you'd be far behind others. When your friends will be buying their first house, you'd be struggling with your credit card debt.

Ideally, the best time to start investing for your future is when you are early in your career. You don't have the responsibility of a family on your shoulders, which extends you the leverage to save more, for short term goals like buying your first car, as well as create a strong financial backup.

So, What you need to do, to get back on track?

Budget: First of all, prepare a budget and follow it religiously. Write down your expenses, so you'll get a clear idea about where all you are overspending. If you like gadgets, download a Budgeting App on your phone. You'll be able to track your expenses, you'll be alerted before approaching the expense threshold, and it'll help you manage your bills, etc.

Spend judiciously: Cut impulsive spends. Make it a point to always consider your need before you take out your card. You would realize that much of the money you spend goes into discretionary expenses, a large part of which could be avoided.

Identify your Goals: Define your goals. It could be saving money for a professional course, a hobby like joining the swimming club, a 10 day trek to the Valley of Flowers, saving for marriage, first car, etc. Or it could be long term goals like buying a house or even retirement. Whatever it is, whatever fantasies you have, pen them down.

Consult a financial Advisor: Once you have your goals ready, look for a knowledgeable and trustworthy financial advisor, who will help you in designing the masterplan to achieve your goals.

It'll be a step by step plan, considering your goals and your current financial standing, your advisor may even suggest you to put some goals on hold. Your financial plan will serve as a guide for you, it'll tell you how much money you need to carve out for each goal. It'll help you cut your discretionary spends, since you have your investment commitments.

Invest: Lastly, it's important to start. No matter how small the investment amount is, but you need to put your vehicle in the first gear.

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With the ITR filing deadline not even a month away, it's time to start gearing up to file your return, if you haven't done already. Waiting for the last moment may not be wise for a number of reasons, there may be discrepancies in the TDS and the tax due, you may require additional documents or data, and moreover the tax filing website is often sluggish because of the heavy load on the last day. For any reason if you miss the deadline, the penalty for late filing may go upto Rs. 5,000, and you can also commit mistakes in haste. So, we suggest you to utilize the time in hand, collect your documents and data so that you can file the ITR in time. You can file the ITR by yourself on the e-filing portal: www.incometaxindiaefiling.gov.in, and there are various other websites, also providing a platform to file returns. Alternatively, you can also reach a professional for help.

So, here is a quick guide on how you should go about filing the income tax return.

Before moving on to filing, you need to have the numbers ready, and the corresponding documents, like documents supporting income, expenses, bank account details like ifsc code etc., for claiming refunds.

Once you are through with the groundwork, it's time to file the return.

- The first step is to select the ITR form applicable to you. If you are a salaried individual, with income less than Rs 50 Lacs and/or income from one house property, and no business income, no capital gains during the year from sale of any assets, then ITR-1 form will be applicable to you. ITR-3 or ITR-4 for business income or income from profession. There are various other ITR forms, please refer the following table for other cases.

Source: www.incometaxindiaefiling.gov.in

Business/Profession: If the business or profession is on a small scale and the incomes and expenses are simple and straightforward then you can file the return on your own. If the calculations are complicated, then we suggest you to seek expert help.

Salaried Individuals:

Enter the incomes

This year, the IT department seeks a detailed breakup of the income earned by salaried individuals, like the basic salary, value of perquisites received, profits in lieu of salary, deductible allowances received. Be careful while filling in the details. You'll get the break-up in the Form 16 that you get from your employer.

Enter other incomes, apart from your primary source of income,

- Rental incomes

- Long Term and Short Term Capital Gains received during the year, check the exemptions allowed under Section 54, 54B, 54D where the capital gains is on the sale of a property.

- Interest incomes, like interest on FD's, PPF or NSC redeemed, bonds, savings account, interest income on tax refunds, etc.

Note, that interest income from Savings account is exempt upto Rs 10,000 u/s 80TTA and this exemption is not applicable to FD's.

Also the bank deducts TDS @ 10%, if you fall under a higher slab then you'll have to pay the extra tax.

Enter the exempted expenses

- The investments and/or expenses falling under Sections 80C, 80D, 80G, etc.

- Home Loan principal and interest are exempt under separate sections

- Investments under different sections

- Make full use of your salary breakup, uniform allowance, HRA, transport allowance, etc., subject to the bills furnished by you to the HR department.

- Even if you did not claim for an exemption which you had already paid for, while submitting the proofs in the March month, claim for it now. You can always claim a refund.

Check the form 26AS, to cross check the TDS. This form is available on the tax filing portal. In case of any discrepancy between the TDS appearing in the above form and in your form 16, or other TDS documents, then reach your employer or the payer of the respective income.

 Enter the TDS details

Pay self assessment tax, if any. If the tax liability is more than the tax paid as per the form 26AS, then pay the additional tax by filling the challan 280 also available on the tax filing portal. You will have to enter the details of the Self assessment tax paid, like the BSR Code, Challan No., tax amount paid, etc., in the return.

In case of a refund due, enter the bank details in the ITR form.

File the Return.

And Lastly, e-verify the return. You can do it within 120 days of filing the return. There are various online methods to e-verify like Net Banking, Aadhar OTP, bank account, etc. Alternatively, you can also send a hard copy of the ITR-V to CPC, Bengaluru.

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Financial literacy is regarded as an important requirement for the effective functioning for any economy and society. Over the years, financial literacy ensures supports social inclusion and enhances the well-being of our communities. While financial inclusion is the primary criteria while evaluating the level of development & progress of any economy, true financial independence cannot prevail in absence of literacy. In this article, we shall be taking a closer look at what financial literacy truly means and the advantages of it.

What is financial literacy?
Financial literacy refers to the ability to make informed judgments and to take effective decisions regarding the use and management of money. It thus includes the awareness, knowledge and skills to make decisions about savings, investments, borrowings and expenditure in an informed manner. In other words, financial literacy would mean that you understand the risks & rewards associated with every monetary decision and are also aware of the other options available to you.

Signs of financial illiteracy:

• Lack of awareness upon the need and importance of various financial services/ products.
• Lack of access or knowledge as to how to access to services/products
• Lack of knowledge and understanding of financial services/ products
• Inability to 'rightly' chose between alternate financial services/ products
• Inability to make proper assessment of the present & future financial situation
• Inability to understand the risks & rewards of any financial decision

Why financial literacy is needed?
The need for financial literacy is felt in developed and developing countries alike. Even if you have financial inclusion wherein you have easy and fair access to banking, investment and credit products, the real benefit can only be enjoyed if you are financially literate. There are many cases and even high chances that in absence of proper knowledge, one can be exploited by intermediaries and manufacturers, alike, leading to grave financial loses or crisis. In a world with growing financial inclusion, rise in number and complexity of financial products and a need for financial independence, financial literacy has become a must for everyone.

From a regulatory perspective, financial literacy empowers the common man and reduces the burden of providing protection and even grievance redressal to the common man by the regulators. It thus makes the entire financial system more efficient, disciplined and progressive. Financial literacy not only marks an improvement in the quality of life but also on the integrity & quality of the markets.

Who needs financial literacy?
Financial literacy is for anyone who has somthing to do with money. Thus, there is no one who doesn't need it since all of us are either engaged in earning, borrowing or spending money and do take financial decisions in our daily lives. Perhaps only infants, lunatic, godly men or old age dependents may be excluded from this group.

The focus of this article is on financial literacy that relates to you and your family members. Financial literacy is important for you, your spouse, parents and even children. Though one may argue upon the level and depth of the financial literacy knowledge required between different groups, an overall understanding is a must for all. With financial literacy, we have the following advantages

• Clarity of financial concepts and terms
• Making better financial decisions related to savings, investments, borrowings, etc.
• Accessing financial products & services easily, without fear or prejudice
• Building assets and wealth over time, leading to better financial health
• Overcoming vulnerability and avoiding exploitation by people around us
• Planning towards economic security to self and for family

Components for Financial Literacy:
The next question that arises is to what does financial literacy comprise of? You, most probably, may consider yourself as financially literate but may not be able to clearly outline the required knowledge surrounding it. We are presenting the broad outline to test oneself on financial literacy.

The following together can be considered as comprising financial literacy for any individual.

The above may seem to be a very comprehensive outline but the idea is to cover all the major aspects of money that one has to deal in their lives. While detailed knowledge may not be necessary under each heading, one should however have the broad conceptual understanding of the idea and/or knowledge of options, as the case may be.

Conclusion
Financial literacy is the primary step for financial inclusion since introspection changes behavior which in turn makes people seek and receive financial services and products. Financial literacy can lead to financial wisdom and financial independence in knowledge. It will give the ability to manage money not just deal with it and to use skills & knowledge to take wise decisions for the future.

We advise all our readers to ensure that they are 'financially literate' in the truest spirit. We also encourage all the readers to make their family members, especially spouses, parents and growing children financially literate. One may use the outline shared to impart such knowledge. Indeed it would be a great learning for anyone that would otherwise take great time & experience to gain. This would help increase the economic space, self esteem and the confidence level of any individual and make him/her ready to easily engage in the mainstream of the financial systems.

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Today we'll not talk about financial products or investments or goals, rather we'll concentrate on simple routine money habits which you can apply in your daily life and become financially prudent, i.e. spend less and earn more.

So, here are ten money habits that you can adopt in your everyday life:

1. Don't carry excessive cash in your wallet: Make it a rule, keep minimal cash with you. Cash generally isn't faithful to the owner. You must have experienced that once you pay for a purchase with a 2,000 rupee note, the change will vanish in no time, plus there are chances of cash being stolen or lost. So keep limited cash, you can always use a card or an e-wallet in case you fall short of money.

2. Be Vigilant with money: You must be careful with money in routine activities like you must always be aware of how much cash you have in your wallet as well as in your cupboard, otherwise you will never come to know if you have dropped or someone has slipped a few notes away. Write down if someone has borrowed money from you or vice versa if you owe someone, if you tend to forget such transactions. Regularly check your bank statements, check the sms' you get from your banks, so that any wrongful debits can be detected.

3. No to impulsive shopping: Put a strict no no to hasty shopping decisions, because in such cases you end up buying stuff you don't need or already have, and only waste your money. You should always make a buying list, after a careful consideration of your requirements, and strictly adhere to that list.

4. Don't go overboard in frugality: Don't go all the way to the wholesale market for buying 1 kg of dal, and waste your time and fuel, because it's 10 rupees cheaper. Although we must cut costs to save money, yet you must factor in the time and energy that goes into saving those bucks, the efforts gone must be worth the saving.

5. Pay your bills in time: Many of us are chronically late in paying our bills. We often end up paying late payment fee and penalties on our mobile bills, electricity, water bills, etc., not for lack of money, but for our lethargy. These penalties if avoided could have saved you thousands of rupees over the years. Make it a rule to always make your payments in time, you can use mobile apps to remind you of the bill dates or you can use automatic bill payments system.

6. Manage your credit cards: If you are using a credit card, you must be extremely careful in always making bill payments in full and in time, because:

> Late payment of bills attract heavy penalties

> If you just make the minimum payment, then though you don't have to pay the penalty, but you have to pay interest, and the interest rate in most credit cards is above 30% p.a.

> Thirdly, defaulting in credit card payments affects your CIBIL score.

7. Be a smart shopper: You can save a lot while spending. The first thing to do is compare the prices on different websites, or stores, at times there is a significant difference in the price of the same product at different places. Look for coupons, you can get discounts on various products and services, also remember to use your coupons before the expiry date. If there isn't an urgent need, wait for the sale, why spend more when you can get the same thing at a cheaper price, next month.

8. Budget: If you wish to achieve the ultimate objective: spending less than you earn, then you must create a budget and follow it religiously. Keep a track of your expenses, and try to keep them within the limit you have set for yourself. It is ideal to note down your expenses, it'll be easier to track them.

9. Crosscheck the bills: Make it a habit to always crosscheck your bills, like food bills at restaurants to ensure you are not paying for the dish ordered by people sitting at the next table. Similarly check your grocery bills, mobile, electricity bills etc., since there can be discrepancies.

10. Eat at home: The frequency of dining out has increased for most of us over the years. Eating out especially at fancy restaurants is an expensive affair, it occupies a significant piece of our total expenses, particularly in metro cities. We pay thousands of rupees for one dinner, if you calculate your restaurant expenses for an entire year, it'll be a significant sum. If you increase the frequency of eating home cooked food, it'll be good for your health as well as for your pocket.

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