LIVE WITHIN YOUR MEANS
There is nothing complicated about this habit. If you earn INR 50,000 monthly then you live on INR 40,000. As your savings and investments grow, your financial situation will improve dramatically.
If you want to buy anything which is not in your budget. Then plan a product and save for it the next couple of months. Try to ignore credit card purchases.
PAY YOURSELF FIRST
If you’re having trouble with the whole concept of living beneath your means, it’s time to pay yourself first. If you have a 401k (or some other employer retirement account) this is a simple way to automate the process of saving money. Allocate a certain percentage, or even a certain dollar amount, to come out of your pay each pay period before you even see it.
READ TWO FINANCIAL BOOK EACH YEAR
If you want to become financially stable, you’ll have to seek advice from the financial masters. Easy to do, since nearly every one of them has at least two books available.
TRACK YOUR SPENDING
If you don’t have a budget, plan to create your budget now as a high priority. Without a budget, you probably don’t have even a remote idea where all of your money is going. This is one of those good financial habits you absolutely must adopt you if want to get control of your finances.
LEARN TO SAY “NO” TO YOURSELF & YOUR KIDS
This is really about getting control of impulse buying. You’re out somewhere, and you see some item you like, and you buy it because it doesn’t cost that much. Even worse is the ability to purchase things online nowadays and have it delivered to your doorstep in just a few days.
BUY TERM INSURANCE
Terms Insurance is very important if you have responsibility or family. Because this gives you safeguard to your family. I always suggest a plan to buy Term Insurence 20 times your salary.
RETIREMENT SAVINGS PLAN
Retirement is very important, save at least 10-15% for your retirement. I know lot’s of my family members they cross 65 but still, he is working. So if you want to live your retirement life peacefully then plan it from today.
GOAL BASED SAVING
Don’t save money without any goal. Create a list of goal like Retirement, Child Education, Marriage, etc. This is very easy to track your all saving.
MISSING MONTHLY CREDIT CARD PAYMENTS
Don’t miss credit card payment, plan it as a high priority in your life. Whenever a monthly salary hit in a bank account transfer credit card payment first then do any expense.
NEGLECTING PRODUCT MAINTENANCE
If you invest in regular oil changes for your car, then you can decrease the amount of money you spend on gas and extend the useful life of your vehicle. If you get your furnace maintained by a certified professional once a year, then you will save money on your energy costs and extend the life of your furnace.