Economics of Household

I have been thinking about writing this for quite some time. But am not sure how to put it. This may be a hafazard article jumping here and there. This is all about economics of house hold as I see from my point of view.
We have to spend within our means then we can live comfortably is the motto.
You save money so that you spend your retirment comfortably.
How much to save is the question.
My view is if you are earning 100rs. save 20rs. well that is great.
But when you are earning 1000rs. don't try to save on percentage basis that is 200rs. On the other hand don't save only 20rs. Find a via media and save a little more and spend a little more.

You can buy some property while young say house so that you can repay what ever loan you take. But this also you have to think properly. You can not just lose your today for the sake of tomorrow.
When I was young, I did not want to go for a house loan. I thought because of the loan, I might start thinking whether to give a cup of coffee to a guest who has come on a visit. This is what I call losing your present. This is just an example there may be umpteen examples which a loan might put a hindrance to.
I never go in for any instalment purchases. Even though you start enjoying the benefit of the product from day one of first instalment, the interest and hidden costs, even though they say zero percent blah blah adds up to quite a sum . It is better to wait and keep the instalment money in bank and then buy the product. This is especially true for products which are not utility items and which can be done without till you have saved the money.
But some house loans etc especially in India is beneficial for tax saving purposes. In that case the pros and cons have to be weighed and the benefits, repayment capacity, etc have to be properly calculated and then one can go ahead with the loan.
It is very very important to write the accounts every month. You will know where your money is going. It might look silly to write what we are spending. But when you look at your accounts in the month end, you will be surprised to see expenses which otherwise would never have been noticed.
Personally, I always feel it is very good to invest in gold, not in the sentimental way. Buy some jewels not the one with stone and intricate designs. If you are buying for investment purpose, buy gold ornaments with designs which use minimum wastage. Use it happily and when ever you need the money without any qualms just sell it to raise capital. This way you have the satisfaction of using the jewels also. This many may not agree but again, I find it very useful.

One should never be a compulsive buyer. I have seen the urge to buy things when we see them in shop is just too much to resist. some times we do buy and wonder later why we bought it at all. To out do the urge the best solution is you just tell yourself to go around the shopping area and come back again and then buy. once you are out and when you come second time I have found out, many times the urge is gone and you understand that you don't need that thing at all.
The maximum expense we make in modern days I feel is on clothes. We tend to buy them left right and centre and end up with pile of clothes in the house. since modern day clothes last longer because of good quality, you see clothes every where in the house. my hubby always says that my house becomes a mess because of the clothes I buy and he says our house will be neat the day you stop buying heaps of clothes. (I think) I have learnt some lessons and do not buy much clothes.
One another best way to save money is to stop wastage. We tend to waste so many things starting from electricity, water, food, groceries, and what not. Just by being not lazy and switch off the fan not needed will help you save. I don't mean to say switch off the fan the moment you get up irrespective of any other person sleeping in the room!!
I have seen people who had retired with lot of benefits, suddenly in problem when they fall sick, as medical expenses are quite high today. even tests cost you quite a lot.
Of course the medicare and other medical insurance is catching up in India, but still one has to have some savings to take care of medical expenses as the cost increases as age increases.

One important thing is money should not make you lose your interest in life. Life is to be lived is very important and if we just concentrate on creating wealth you end up not living your life at all.
But one should understand that for everything bottomline is money and surely while earning well it is better to save judiciously.