Having a financial stability is very important for an individual. It’s like one of the ultimate goal. To achieve this goal, you work hard, get promotions and grow so as to have an easy retirement. You start investing your money in different places so that you can enjoy it’s benefits once you retire. In this blog, i am going to list down a couple of healthy Habits for a financially stable future which will help you to know the value of money:
- Control your reckless spending: The most common problem with the young generation is impulsive and careless spending. We generally have the tendency to spend money on expensive electronic gadgets, branded clothes, fancy restaurants and online shopping. This basically drains out all your money. You won’t realize it while doing it, but only when you sit at the month end to know how much did you save, yo will get the shock. Rather then such a reckless spending behavior, you should save some money for future which can be used in case of emergency.
- Invest in your future: This may sound like what someone would advice you when you are in your mid 30’s. But trust me, even if you are in your 20’s, you should start saving up. The only reason being that when you are in your 20’s and you start investing, you will get a better rate of interest as compared to the one that you would get in your 30’s and you will learn how to use your money wisely rather than spending it foolishly.
- Don’t put all the eggs in one basket: Smart words said by Mr. Warren Buffet. One must never exhaust all his savings in one investment, rather diversify your investments. In the sense, by the time you retire, you should be having returns not just from one place but from different places. By doing this, you will gather enough money in case of emergency.
- Have clear Financial goals in life: Every individual has some basic financial goal planned for his lifetime like : children education, their marriage, retirement plan, medical expenses etc. Now, to achieve these goals, the person needs to have some basic idea on the number of years. As in, that person should approx know by when he wants their children to get married, when will medical expenses be the most etc. After knowing that, he can then calculate and get to know the approx amount he will be needing till that particular time and hence he can strategize his financial planning accordingly.
- Implementation of the goals: It is very easy to to set future goals but equally difficult to actually walk through it. If you have planned your long term goals, it is ow time to walk through it. Develop different strategies on how will you achieve it. Think different ways to achieve the goals. Now building different strategies depends upon how keen are you to take risks. If you are not ready to take the risks, you should possibly calculate another method or an alternative to achieve your goals, for eg: you might need to cut down on the expenditure on luxury to achieve the goal.
- Make a budget on your monthly use of money: Try and set a budget for yourself. For example: You make use Rs 15,000 per month for all the expenses ; right from petrol to food to grocery etc. Make sure you don’t end up using more than 15,000. Try and adjust to stick to the budget and try to save something out of it at the end of the month. Collect the savings every month and invest it somewhere where you can expect high returns. This will not only make you realize the importance of money but will teach you how not to spend unnecessarily.