Habits define the way we live our lives. We all tend of have good habits as well as bad habits however, as humans we tend to succumb more towards the bad habits no matter the consequences. But when it comes to finance some bad habits may reflect badly on your income. Wealth cannot be grown or sustained by increasing the amount of money you earn but by the way you manage that money.
In other words it doesn’t matter whether you earn Rs. 5,00,000 or Rs.10,00,000 per annum, but the way you spend and manage that money defines your financial habits. Hence adapting positive financial habits is crucial for better money management.
Here are a few positive financial habits that you can start right away
The first thing you should do with your paycheck is transfer a small part of it in an account. You can use this account for your personal use and keep saving money for when you need it. Understand that this account isn’t for an emergency fund but for your personal expenses. Use this money to pamper yourself or splurge on your favorite activities after all you will always have bills to pay and investments to make but don’t forget your needs in the process.
Always Check the Buy Value
Buy value is basically the worth of the product in terms of its price. If you have a habit of not thinking about the price or impulse buying then developing this habit is very important for the sake of your bank accounts. Checking the buy value doesn’t necessarily means to buy cheaper or expensive products but to find the best value for money. Compare prices of products and find the best place to purchase it, sometimes it’s okay to pay extra for good quality but know that expensive products may not always be of the best quality. Therefore, read more and do a little research on the product, its types, available options and its prices.
Its okay to borrow a little money here and there but constant borrowing may put you in tons of debt and before you know it you’ll find yourself spending your paychecks on those debts. Therefore, avoid borrowing money unless it’s absolutely necessary; instead save in advance for occasions where you will need to spend money.
Keep Bill Money Aside
Knowing how much you owe for services will allow you to sum up an amount that you can save in advance; once you have saved enough you can then use that money to pay all your bills. Paying your bills on time will not only remove a huge burden from your shoulders but also give you more control over your finances. Always a good idea to start a short to medium term savings plan with KyePot app
Avoid Advertisements (Especially Online Ones)
Advertisements will lead you to your doom. It’s an art that entices a customer to purchase things that he/she may not need at all. Hence, it’s better to avoid advertisements if you want to save money or develop a good saving habit. Ads on e-commerce portals are perhaps the worst as they offer products on offers and discounts that lure customers to splurge. This can lead to impulse buying that will leave your pockets dry.
Cut back on junk food and restaurant meals. Food can cost lots of money and if you frequently eat outside you’re not doing your pockets any good. Imagine all the money you could save by cooking and eating healthy meals at home. Not only will it improve your health but also add to your wallet..
Its okay to eat out once in a while with your loved ones but making it a habit will leave you broke before the end of the month.
Read and Keep Reading
If you want to learn effective financial management then read books that can educate you about it. There are hundreds of books written by the world’s best finance gurus, it’s good to take advice from people who have good industry experience. Make a habit of reading atleast one book in a year.
If you can’t read books then read financial newspapers, it is the best source to be updated about the latest trends and gain knowledge.
These are some positive habits that you can start right away. Remember that it’s easy to adapt a habit if you do it atleast 3 times. So be diligent and you will find your way to good wealth and stability.