In order that there is no shortage of money throughout life, we should do financial planning from the very beginning of our job or business. Saving money and investing in the right place is more important than earning money, so that we can get its return in the coming times. It is often seen among the youth doing job or business at the age of 20 to 25 that they are not very serious about their financial planning. Very few youth think about retirement planning at this age. Actually, this is the right time for financial planning. If attention is paid to this in the early stages, then after retirement life becomes much easier. Also, you do not have shortage of money.
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Make the right investments and get financial stability in the future.
So you’ve decided to stabilize your finances, but you’re confused about where and how to start? We are here to guide you with 7 financial tips that you must follow:
1. Learn to manage your money
Managing your money isn’t rocket science, and you don’t need to be an expert. All that is needed is dedication. Set your financial goals and find ways to achieve them. As soon as you receive your salary, set aside at least 10% as savings.
You can also save big bucks; the bigger the better. But not in your bank account where you will not get any huge returns, but put in digital gold, mutual funds, FDs, chit funds etc.
Managing your money can seem difficult at first, but the sooner you start organizing your finances, the better your future will be.
2. Emergency Fund
Whenever you start a job under 30, your first priority should be to build an emergency fund. The amount of lifestyle expenses equal to about 6 months should be in the emergency fund. This will help in dealing with situations like medical emergency, job loss. Remember, do not use this fund unless there is an emergency. In the absence of sufficient emergency fund, you may have to take a loan for sudden financial needs, on which you may have to pay a lot of interest.
Read: What Is An Emergency Fund & How To Build Emergency Funds?
3. Make a Budget
The age of 30 years or less is such a time of life when we are generally more expensive. The age of 30 is the best time to save more. One should always follow a budget. Keep a record of where, how much you are spending every month. Efforts should be made to reduce unnecessary expenses. All necessary expenses such as EMI, rent, school fees, daily and household expenses should be listed. Also keep an account of the funds required for investment. Keep in mind that it is necessary to save before spending.
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Download The Money Club App And Start Saving Today!
4. Control your shopping urges
Don’t buy things in a rush. Wait 24 hours before purchasing any non-essential items. Consider whether you really need it or how much you’ll be using it.
Try to find good deals on everything from food, clothes, accessories and more. If you look for a deal, you’ll save a lot of money over your lifetime.
Before you buy, you should go shopping with a plan. The easiest way to save money is to make a list and follow it. It’s a simple habit that only takes a few minutes before each purchase.
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5. Do not ignore Insurance
Insurance cover should be compulsorily included in financial planning. Term life plan is very important in this. It provides adequate financial security to your family during difficult times. Apart from this, health insurance is definitely a must have for everyone. Considering the cost of treatment these days, you must have a health cover.
6. Learn to Manage Debt
Do you know that the most expensive form of debt is the credit card? When you use it repeatedly, before you know it, you are in a financial trap. Get in the habit of using your credit card only in emergencies. By having a good strategy for repaying your loans, you can avoid falling into the debt trap. If you have a lot of debt, start paying off the most expensive debt first.
You can think of several financial goals. Like a car or a new smartphone or higher education. In all these cases you need money. But where will it come from? No, no debt. Saving is the only way to do it!
You may consider saving and building a corpus to achieve your goals. In this way the person is saved from drowning in debt.
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The Best Way To Save, Invest And Borrow Money Hassle Free
Best way to save money
Chit fund is a savings scheme in which you can invest or borrow as per your need. The best part is that they are completely stable and not subject to market fluctuations. Chit Funds have the advantage of being an investment as well as meeting a need. Money can be easily withdrawn in case of emergency or can be invested indefinitely. Personal needs can be met with chit funds.
Money Club is a Savings, Investment and Loan app. The Money Club is a fintech company that has built an AI-based savings and lending tool to enable the lower-middle class population to save, borrow and invest digitally. If you invest your money, you get 10%-15% interest per annum. Not only this, you can also take a loan on this app at any time with a low interest rate. The returns received here are more than any Fixed Deposit.
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7. Start building your investment portfolio
Your future depends on how you use the money you save. It is often seen in the youth that they put their money in one place. Regarding investment, according to the corporation, the entire investment of the fund should not be done in one place. Always keep a diversified investment plan. In this, choose the investment option by looking at your financial goal, risk profile.
Mutual fund option can be good for creating wealth from long term perspective. Apart from this, investment options such as PPF, RD, NSC, FD, Chit Fund can also be included in the portfolio for safe and guaranteed returns of the market. At the same time, if you include property and gold in your portfolio at the beginning of the job, then it will give good returns in the coming times.
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Conclusion
Lastly, we advise you to consult an expert before making any important money related decisions. Managing your money is not a big task if you make it a habit. Make this habit a part of your daily routine. Follow the above mentioned tips to kickstart your savings and investment journey and grow your wealth. Take advantage of your youth and increase your self-worth.
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