1.ALWAYS KNOW WHERE YOUR MONEY IS GOING:
If you are a salaried employee or even if a businessmen always keep a conscious track of your money.
EMI KITNI HAI (how much EMI you have?)
TRAVELLING EXPENSES
MOBILE BILLS
HOME EXPENSES
TRACK YOUR EXPENSES
2. Save for retirement:
It’s never too late or early to start to save for your retirement, sooner the better as it takes off lot of mental pressure from your head. Start with saving 10% of your monthly earning and increasing the same as your income grows. You can open a PPF account also. SIP in a mutual fund is a great way to start. You can also open an IRA i.e INDIVIDUAL RETIREMENT ACCOUNT. Focus on starting today don’t procrastinate.
3. Have an EMERGENCY FUND:
It can be in the form of liquid cash or FIXED DEPOSIT which can get liquidates in a short notice. One should keep close to minimum 3 to 6 months of your salary as an emergency fund.
4. HEALTH & TERM INSURANCE:
Unexpected hospitalization and injuries can happen to anyone, you should always be ready for it. Many people think we will see when it happens but by the time we realize it gets too late and we are left with a heavy hospital bill, so what will you do then?
Don’t be dependent on your company’s health insurance what if you are out of job then!!! So better have a personal health insurance. On an average you get it for 5k to 7k per year (subject to your age and any ailment). It’s better to be safe than sorry. You can also avail tax benefit under section 80D of the income tax act 1961.
TERM POLICY: It’s the most cost effective plan. It helps your family meet its financial needs in your absence. Term Policy offers peace of mind with affordable premiums and a life cover that you can choose depending on your family’s lifestyle and financial needs. It covers your financial liabilities.
TALK to an insurance agent/advisor or go directly to your bank; discuss the policy that suits and the amount you want to invest. Avoid buying online policies as there is nobody to guide or you can be in a soup at the time of claim. We all know that we don’t read terms and conditions (as the fonts are way too small and we are lazy to read such long information’s and also few terminologies go above our head) where as an agent will provide you maximum details.
5. USE YOUR CREDIT CARD WITH CARE:
A credit card can be a blessing or a disguise. It’s a blessing if you use it wisely and pay your bills on time and also in case of emergency. Pay the whole amount on time because the rate of interest is very high.
6. PAY BILLS ON TIME:
Guys, take care of your bills before the due date. Delayed payment results in late fees. Don’t spend your hard earned money on penalties and burn a hole in your pocket. One can also use online options to pay bills instantly. Set reminders (these days the companies itself sends you unlimited reminders so that there is not even a remote chance for you to miss the payment)
We work so hard to get that money but keeping a control on it is going to save us from so many problems. See it’s like your tongue if you use it wisely it’s going to benefit you otherwise one can enter into a big problem. So be wise.
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