Unfortunately, financial education is not the strength of the Indians. In India, people think money management is a course that is more relevant to people who have money or business? If you are sailing in the same boat, you are wrong.
To start with, let me burst the bubble, you might be living in. Money management is not an only essential thing, but a mandatory concept to learn. In real money management is the real secret behind all those SUVs you see on the road. The only difference between those people and you is – they have taken it very seriously and they have mastered the art of having a fair balance between earning and saving. To help you, here I am going to mention a few financial tips for adults. Try these and I am sure that you can have a comfortable and prosperous life.
Learn to control yourself and have patience
First of all, you need to learn to control yourself. Nothing happens overnight and that is the only rule for any sort success. You need to work on your patience and you have to prepare yourself for certain sacrifices to that you can have greater reward late.
You need to give up your habit of shopping on credit card. In this way, it reduces the risk of buying things you do not really need. If you like a pair of jeans and the only paying option you have is credit card; it is better to drop the idea of buying those jeans until you have the balance on the credit card. Learn to save and live with what you have in hand, is the first step towards financial prosperity.
Find out where your money goes
Now that you are concerned about your monthly budgets, you must look for the reasons for those exceeded expenses. You need to understand the importance of lowering your expenses because that is how you are you going to live peacefully.
For that, you need to have some budget plans or budget former. You can use them to keep an eye on your income and expenses. If you are tech-savvy, a simple Excel or relevant mobile application can solve your purpose.
Note that costs you and see where you can “cut”. This way, you can save some money. For example, you can pay a lower rent in an apartment, then be buying your own home; if you are at a location for a temporary period.
Create an emergency fund
One of personal finance laws says you pay yourself first. Thus, before paying your bills and other expenses, first set aside an amount for emergencies. You need to create a saving fund for unexpected situations. This keeps you away from financial problems and helps you sleep better at night. In addition, it will become a habit to save, so you get to have more than money for emergencies.
Protect your money
Even if you do not initial savings, yet you should keep trying to find the best solutions for saving and investment. It is okay to save in the bank. But, look for the interest rates. There is no good use of blocking your money for a longer period with an interest rate like peanuts. It is not a long-term solution.
Look for the saving options that can offer good returns; ideally, nothing lesser than 10% annually. Also, keep a close watch on the fee associated.
Let luck and get to work
Luck comes from hard work. “If your work is rewarded, what happens in most cases, people might say you’re just lucky? Perhaps it is you are lucky enough to have a brain and work hard.
Do not run after gadgets
It’s easy to get caught in the rush to purchase the latest gadgets. And, after some days, you will be served with an EMI notice on the same gadget (if mobile phone). So, do not waste money on electronic gadget because this market segment is very flexible and you cannot match their pace.
Often people have financial problems because they try to eat more than they can chew. They use credit cards as a way to appear and feel richer, but the truth is that every swipe of credit card is a step further towards poverty because you have to pay interest on borrowed money.