We all have a tendency to spend money more than required. We don’t do it on purpose or intentionally but somehow we tend to spend more than required. What is the most common thing you hear these days amongst youth? It is: “I am broke”. So this pops a question as to “how can he be broke, when he earns?” Well, he earns enough to support himself and the family, but because of his reckless spending habits, he tends to be broke by the end of the month. Generally, people tend to spend more than what they earn(specially today’s youths). So much money is spent on shopping, chilling and meeting new people, that by the end of the month, you are left with nothing. So what do we do for having a healthy financial lifestyle? Well, here are a certain pointers that you can consider:
- Keeping the money in your wallet minimum: Keeping the minimum value in your wallet will help you to control the unnecessary spending on things you don’t need. Ofcourse you should keep some money for emergency, but that money should be only used in emergency and not otherwise.
- Keep aside some amount from your salary: Whenever you receive your pay check, make sure you keep atleast Rs 2,000 or Rs 3,000 aside. Maybe invest in funds for 6 months lock period and use it after 6 months with the interest. Or you can add some more money and re-invest it for another 6 months.
- Planning your monthly budget: Plan all your fancy dinners and office parties budget in advance and spend money accordingly in the entire month. This is how you will learn the concept of saving the money.
- Have a good credit score: Having a good credit score is very important. If you ever need to take a loan, this three digit score will determine if you are eligible to get a loan or not. If you have a low score, then check out our blog which gives details on how to increase your credit score.
- Paying your bills on time: Paying bills on time directly affects your credit score. If you straight away pay all your bills on time, you will have a high credit rating. The more you delay, the more your rating goes down.
- Never to buy anything in impulse: While going for grocery shopping or while buying clothes, don’t shop in impulse. Meaning that see if the product that you are buying is actually needed or not. Don’t unnecessarily buy just because it is fancy.
- Tracking on your income and expenses: The best way to cut down on your expense is keep a regular check on the income and your expense. If your expense = your income or expense > income, that’s when you need to worry.
- Take advantage of offers and coupons: There is a neck to neck competition between the brands to sell off their products. Because of this reason, brands give heavy discounts and online vouchers to gain attention and engage more people with the brand. So we should take advantage of all the offers and coupons provided by them as they will help us to save a bit of money.
- Knowledge on stocks and other investments: If you are investing in stocks, it is a very important thing to have a prior knowledge about stock. A full knowledge will help you to understand their growing and falling pattern and eventually help you in investing. The same applies to any other investment. Before investing somewhere, you should have a prior knowledge of that.
The long and short of it is, know your investments properly. Read all the terms and documents before investing into something. Also, invest smartly and save for the future. This mantra will help you in the long run and you won’t face any major issues in your retirement.