Life will be a smoother ride if you are good with money. Financial skills like saving, investing and managing risk help you achieve your goals.
You can continuously improve your financial life by taking small but effective steps.
7 Little ways to improve your Financial Life
Discover these seven little ways to make a positive difference in your financial life –
1) Regular Contributions That Increase Over A Period of Time
The quote, “A stitch in time saves nine” is very apt for personal finance. We cannot grow our wealth overnight. Invest some part of the income you receive regularly. Each time your income increases, increase the investment amount proportionately or even higher.
Why – Over a period of time, you would have built a good corpus and you will not be tempted to spend more than necessary.
2) Follow the 50-30-20 rule
The 50-30-20 rule is a guideline on how to allocate your income into different categories. As per the rule, spend 50% of the income on necessities. Allocate Minimum 20% to savings and investments and set aside 30% for wants.
Why – You are compelled to bring a balance between obligations, goals and splurges.
3) Plan Major Purchases
It is better to plan major purchases such as a TV or a car. Do not go to the mall or go online, the moment you decide to buy something expensive. Evaluate if you need it and if you can afford it. Check different options before selecting the most suitable product. Think if the planned purchase gives you value for money.
Why – You will avoid unnecessary splurges that might put a strain on your finances. If you plan to buy using a credit card and end up missing instalment payments, you will avoid unnecessary interest payments and mental agony
4) Limit Online Shopping
Online shopping brings all the beautiful things to our home and our little screens. Most of us are enticed to browse and shop much more than what we plan for. Stay away from online shopping websites. Do not go to your device when you are getting bored or are upset or want some entertainment as you may be swayed to shop.
Why – We end up spending too much money. We fall for many marketing gimmicks and buy many things that we do not require. When we invest the amount saved, we will feel good about ourselves!
Read This – How to make money with Credit Cards.
5) Look For Ways To Increase Your Income
Are you a software developer or a teacher? There are many companies and startups that require personnel on a short-term basis.
For example, some companies might want to build a mobile Internet presence. Online learning platforms require people to help them with course material. You can check out for freelancing opportunities that require your skills. You will gain experience and also earn money. On the other hand, you can convert your hobbies or talents to income sources.
Why – You earn more money. You increase your knowledge and improve your skills. You have a backup in case of untoward circumstances. You might transform the secondary source of income into a successful business venture.
6) Invest In Yourself
Your best investment is “You”. Invest in enhancing your knowledge, your skills, and your financial quotient. Spend money on self-care, self-confidence and contentment.
Enrol for courses related to your work so that you are more knowledgeable, are up to date with skills required in that area. You should take up courses for skills specific to your job, skills that will allow you to take more responsibility and soft skills.
Educate yourself on other aspects that are not related to work. You will become a better person and also be of more value.
Personal finance is not very difficult. Read books, listen to podcasts and engage with a financial advisor. You will be in control of your finances.
Spend on things that you like so that you will have fun and be inspired and motivated in life.
Why – You will advance in your career. You will be more creative. You will have self-confidence and be a charge of your finances.
Check – Money Vs Job Satisfaction?
7) Invest in Preventive Healthcare
Health is wealth in the truest sense. If you are not healthy, you have doctor bills and hospital bills. You cannot enjoy with friends and family. You will be stressed and anxious all the time.
It is, therefore, better to invest in healthcare.
It means taking time out for good meals, rest and rejuvenation, and exercise. Obtain a suitable medical insurance policy to cover you and your near and dear ones for unexpected health-related expenses.
Go for routine health checkups (Youvraj’s message for you)and take out time to eat balanced meals and maintain your fitness.
Why – If you are healthy, you will be happy. You will have the strength to work harder. Moreover, healthcare is expensive. Without a health insurance policy, a serious illness, accident or hospitalization can cripple your finances. Apart from the physical and mental inconvenience, you will also be in financial turmoil.
8) Bonus – Hire a Financial Planner
Hiring a financial planner is a small change that in the long term can add immense value to your financial life.
Why – You decide for yourself.
If you are looking for a Comprehensive, Competent & Complied (SEBI Registered) Financial Planner – you can check this.
Most of these rules are straightforward and solid. Ensure you manage your personal finance effectively to reach your financial goals and have a stable financial life.