Individuals should be financially stable to face any financial crises at any stage of life. Many times it so happens that we have enough income, but, we fail to use it for the right reason which in turn will make you spend on unimportant things and regret later.
There are chances if we do not plan our finances on time, we will be left with no surplus money and income in future to lead a comfortable life.
Manage your money such that you can spend your golden days with peace not worrying about your bills.
Many young individuals earn enough to save for future and make a comfortable life, however, due to indisciplined approach towards finance will make them a financially unhealthy person.
It is better to take charge and control on finance and lead a financially healthy life.
One should plan and accumulate funds depending on the financial goal. Individuals should consider their risk appetite and tax slabs before investing in any financial product.
The financial market changes constantly, and therefore it is important to keep updated with the market.
It is always better to build an emergency fund which can be used on a rainy day.
The main advantage of setting an amount aside is at the time of need, one need not break the long-term investments made.
By setting aside an emergency fund, one can avoid falling into a debt trap by not looking into a personal loan or gold loan in case of need.
Credit Card Trap
Try and avoid using credit cards even though it may seem tempting. Shopaholics can easily get distracted by attractive offers on a credit card or easy EMI options.
However, one should be very smart and proactive in using the rewards points or cash back offers and do not let them go in vein.
Defining the age and amount for retirement should be the first step in retirement planning. So, plan your investment depending on the age and amount you need at the retirement stage.
Personal Finance apps
There are many apps which will help you save and track your expenses. They will help maintain your expenses when traveling or with busy schedule gets difficult. These apps can help you to manage your finances at your finger tips.
There is no harm in seeking assistance from certified financial planner if you have absolutely no knowledge in finance. Such individuals should cultivate the habit of reading and understanding the simple concept of finance.