Thanks to the expensive tags that is coming along with everything, it has become taxing even to accomplish simple needs. And, when it comes to achieving dreams, one gets exhausted just by thinking about the obstacles ahead. In such a scenario, surely, you cannot survive without a proper strategic plan. So, here are some of the tips for effective Money Management.
For a middle-class Indian, it’s not always easy to acquire a huge amount to accomplish all the goals. After all, money matters are always complicated. There would be a lot to simplify and then, the starting point for Money Management seems obscure as well.
Thus, to help you deal with this problem efficiently, here are some of the smart tips that you can follow:
- Framing Financial Goals:
Now that you have realised the need of money management appropriately, are you aware of your financial goals? In the hope of accomplishing long-term goals, people end up jeopardising short-term goals. Although both of them are essential and have their stature, you need to know the perfect timing. So, for that, frame your goals as per the time limit and achieve them one by one.
- Making the Investment Right:
Being a youngster and an earner, whenever you’ll come across long bills, the first thought that would hit you will be the need to invest. But, you need to know where to invest and how to start investment process? Once you have arranged your goals, then comes the phase of making investments. If you are a novice and don’t have risk appetite, start from easily available and low volatile options, such as banks, investment plans, etc. Make sure that your investment is appropriate to fulfil your goals.
- Track Expenditure:
For the next month, start writing down every penny that you spend. Once you have started keeping a track on your expenditure, you will have an idea of where you are spending the most and how beneficial it is for you. Based on the track record maintained, create a monthly budget and use it optimally.
- Save! Save! Save!
After you are done with your budget creation add savings into it. If possible, try to spare away 10-15% of your entire income in the savings category. Cut down your expenses if you think that it would be impossible to save that much amount. Understand your requirements and luxuries to know where you can invest more and start accordingly.
- Pay the Debt:
The more you extend your debts, the more time it will take to accomplish the financial goals. So, before anything else, try paying your debt amount as early as you can. It might be difficult initially, but once you have settled down and are back on track, pay off the debt.
- Emergency Fund:
If you have just found a job and are a new-earner, the thrill to receive a paycheque and eagerness to purchase all that you can divert you from other important things. Out of all the aspects, an emergency fund is something that you cannot ignore at any cost. Whether it’s the financial crisis, job loss, or medical emergency, this emergency fund will prove out to be helpful in many ways.
- Say yes to Cash:
Irrespective of the attractive offers plastic money lures you with; using the cash in hand is always advantageous. When you have an option of saving yourself from debts, such as credit cards and others, why would you get lured by these attractive offers? So, use cash as much as you can rather than swiping a card every time.
So, these are some of the ways through which you can manage your money efficiently. Follow them wisely to make an informed decision and your dreams a reality.