we always heard our parents saying, “stop spending money on unnecessary things” or “learn the value of money”. however old we are today; these things have always been common when it comes to parents or teenagers. the motive behind these discussions was to help us understand personal finance for a safe future.
now as we are loaded with responsibilities in life, it is time to learn more about the best personal financial tips. it will not only help in money management but also in saving more for your future goals. so here are some of the best personal finance tips in India:
15 personal finance tips you need to know
- time to make a budget
- monitor daily expenses
- research on bank interest rates
- contribute to retirement investment
- study your insurance plans
- savings – it’s never too early
- learn about needs vs wants
- ask for employment benefits
- investing is the answer
- maintain your credit score
- go digital with online shopping
- side hustle your way in
- set up an emergency fund
- research well before opting for the loan
- learn everything about taxes
1. time to make a budget
parents should teach kids how to budget from an early age to give an idea about money management. it’s all about keeping a budget and tracking your savings & expenses. stick to the budget for efficient future planning and unpredictable expenditures. start using budgeting apps to make it easier. it’s never too late to start being financially responsible by following this personal financial tip. this money management tip will always never let you go loose on savings and expenses.
2. monitor daily expenses
start looking into your daily expenses and monitor what are the unnecessary costs. This personal financial tip will help you avoid irrelevant expenses without hampering your day-to-day lifestyle. the idea is to be frugal, but not cheap.
3. research on bank interest rates
in the current environment, financial literacy is a must to use various financial skills and plan better. parents should start introducing kids to real-life money management to make them financially literate from a young age. before opening a savings account, fixed deposit or investing in any kind of banking services, thoroughly research different banks and their rates of interest to get the best deal. do your homework before anything else. research on the best financial tips to invest in banks, watch videos by experts and ask people around you for guidance.
4. contribute to retirement investment
always and always opt for a provident fund contribution offered to you by your employer. It is one of the most sought out retirement investment plans. if not that, opt for a personal provident fund to save up for your future with safe compounding. as this is a long-term investment plan, you can combine this investment plan with other short-term investments like stocks.
5. study your insurance plans
don’t be tricked into buying insurance plans without maximum coverage. be it medical, life, car or any other insurance coverage plan, go through the entire benefits and scheme to avoid financial difficulties in the future for you and your family. you can also research the best insurance plans on websites like Policy Bazaar.
6. savings – it’s never too early
we can’t stress this point enough. one of the most important and best personal financial tips is to start saving as early as you can. your savings is your one true friend. pay yourself first to start your savings plan, monitor your expenses, learn all about investing and much more. this money management tip is your first step towards financial freedom. be smart about your future while seizing the day. take baby steps, but don’t wait too long.
7. learn about needs vs wants
we all need to financially grow up someday. for that, we need to give up on our impulsive shopping habits and start understanding the difference between our needs vs wants. that does not mean we should always give up on our wants, but we need to plan better before making luxury purchases.
8. ask for employment benefits
don’t overlook your employment benefits. maximize on employee provident funds, medical coverage, conveyance and more. also, ask your employer for investment declaration options to reduce taxes and other personal expenses. you work hard and deserve benefits for a secure future for your family and yourself.
9. investing is the answer
investments are the buzz these days with people investing in cryptocurrency, SIPs, real estate, etc. with so many investment options and easier accessibility, it is wise to start investing with prior research. research all about investments with akudo. another important personal financial tip when it comes to investing is to avoid being reckless. the idea is to play it safe. here are the top crypto wallets to invest in cryptocurrency in India.
10. maintain your credit score
using a credit card has many advantages like air points, extra discounts and also helps to increase your credit score. ensure that you pay your dues and bills on time to avoid late dues interest. keep a check on your credit score as it could create a black mark on your credit history and can hinder your loan requests in future.
11. go digital with online shopping
shift over to the e-commerce websites to make your purchases. make the most of the year-round sales and discounts to save those extra bucks. It also helps to compare the prices across websites and purchase the product at the best deal possible. You can also read online user reviews of expensive products and make an informed decision.
12. side hustle your way in
break into another source of income that wouldn’t eat into your primary job’s time. you can hustle remotely these days with options ranging from blog writing to being an influencer and creating your own brand. all this can be done from the comfort of your own house. this will also personally help you upskill yourself. you can invest this extra income in various places. learn more about investment options with akudo. here are ideas to start your side hustle today.
13. set up an emergency fund
one can never be ready for any unexpected situation. you should have a separate emergency and medical fund ready at your disposal. it could start off from a nominal amount and increase from thereon. however, this should be separate from your savings. we don’t want a dip in our savings fund. research on the best ways to set up an emergency fund.
14. research well before opting for the loan
there is a point in life where everyone has to take a loan from banks for various purposes like home, education, car etc. ensure that you research well on the best bank interest rates and EMI options. these loans run for a long time and you need to be prepared for the same. we don’t want you falling into debts that can ruin your CIBIL score.
15. learn everything about taxes
taxes. yes, that’s someone no one can avoid. so, it is better you just take some time out to learn everything about taxes and how you can reduce your tax cost in any way possible. be informed about investment declarations, tax deadlines, tax slabs, etc. this is that personal financial tip that everyone should be aware of from a very young age.
all the best personal finance tips in the world may not be enough to get you ready for the financial future, but they will help you think strategically. you don’t have to implement all the tips right away and stress yourself out. take one step at a time to dive into your money matters headfirst and surface up victorious.