Money is the most powerful weapon one can have in today’s world. One cannot survive without it. Every single individual runs to earn more and more for a stable and secure life.
But another important fact about money is that you cannot keep them all with you. It will escape from your wallet if not appropriately handled. It is too slippery. You have to keep it carefully to keep a hold on it.
So how do we do that? A million-dollar question indeed!
Here I am discussing seven such habits that can help you to see the change in your bank balance.
1.Say no to Credit Card: Card Credits are consuming by nature especially use of credit cards are addictive, by using them we satisfy our mind that we are not using money at that moment of shopping
With easy options and offers, we jump into the trap. When you keep on using these options every time. Not only you are going to pay the principal amount, but there is also a risk of paying the interest if you don’t pay them on time. Most people tend to spend less when they pay in cash.
2.Keep a track of your Expenditure: If you track your monthly expenditure head wise, you will be able to analyse the expenditure pattern, then you can cut the unnecessary expenditure, and save a lot. Nowadays, many simple apps are available like a money manager, wallet, etc., which helps you to keep a track on your spending.
3. Leave bad habits: Stop wasting your money on bad habits like smoking, drinking, etc. Even if you are saving 10 $ per day, you will be able to save 300$ dollar per month, and if you invest this amount monthly in a pension fund or mutual fund with a 5% gain, then this will grow to 20,487$ in 5 years. So, by leaving these habits, not only you can save money but also protect your health as well.
4.Save and invest: The money in your piggy bank, or at home that you are thinking safe is reducing its value.
It will not grow; instead, the buying capacity of your money decreases because of inflation. To make it simpler to understand, let’s say if you are having 20$ with you today. You saw a dress whose cost is 20$, but instead of spending on the clothing, you saved it in your piggy bank. After one year you took that 20$ from your piggy bank to purchase that particular dress, but that dress’s cost is 30$ now. So the buying capacity of your money has reduced. What you could have bought for 20$ a year before, now you have to spend 30$ to purchase the same. So not only do you have to save the money but also invest in the right platforms. Nowadays, we can invest in many forms like mutual funds, stock markets, etc.
5.Invest in health insurance: Health insurance is a must. If you face any accident or health issues which requires medical attention, then your saving may disappear. It will wipe out all your saving. This instrument is a must to protect your savings because now a day’s medical institutions are the biggest money suckers.
6.Never stop learning: The work environment is changing at a faster mode. If you are not updated, you will stay back. To survive the changing world, learning new skills, technology, and other different abilities are highly essential.
7.Follow the rule of 50-30-20 for saving: 20% you have to save, 50% on your necessities, and 30% on your wants like a luxury. We all know the formula Income minus expenditure is equal to saving, what if I will tell let’s do it like this Income minus saving equal to expenditure. Keep some part of your income mandatory for saving.
Don’t be a slave of money, know your assets well and choose your expenses wisely to live a stress-free life. People usually compromise their health running after the wealth and get trapped in scary medical bills. So take care of health as nothing is more important than your health.