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How to manage your finances better in 2024?
As we bid farewell to the current year and gear up for a new one, it's about time that we reflect on our financial well-being and set the stage for a prosperous 2024. Establishing a positive relationship with money and adopting healthy financial habits can help us have a more secure and fulfilling future.
Let's look at some tips for your financial well-being in 2024.
Create a Budget:
Start by creating a budget for yourself. Understand your income and expenses. Allocate amounts for your fixed expenses and track where you can cut down on your variable expenses wherever required.
You can also follow the 50/20/30 Budgeting rule. It says that 50% of your net income should go to your needs, 20% to savings, and 30% to your wants.
Setting Up an Emergency Fund:
Uncertainties can knock anytime. It's up to you how you navigate your way out of it. A good practice is establishing and maintaining an emergency fund to cover unexpected expenses. You should aim for at least 3-6 months' living expenses in a readily accessible savings account.
Start Actively Investing:
You can never go wrong with staying ahead of your time. In today's time, with the current global scenario, investing in different investment options that yield returns is a good practice. Start by understanding the different investment options and risk levels. Make sure you don't put all your money in one place but diversify your investment portfolio to manage risk effectively. For starters, you can start a mutual fund SIP. It is good because it's a regular investing technique and yields higher returns. You can start investing for as low as Rs. 100 in these options.
Another option for investing is DIGITAL GOLD. IndiaLends has launched our Digital Gold, where you can start investing for amounts as low as Re. 1. Gold is also considered one of the safest investing options because it always grows in value.
Automate Savings:
We all spend money on things that we need the most. In this process, we often forget to save some money; sometimes, by the end of the month, we're not left with enough money to save later. To avoid this, you can set up automatic transfers to savings accounts. This ensures consistent savings and makes it a habit. You can start an RD account or create a separate account with good interest rates and set up automatic payments from your main account to get your money added to that account directly.
Credit Management:
If you often end up getting into a situation where you have a lot of outstanding balance. To get rid of this:
1. Develop a plan to pay down high-interest balances systematically.
2. Pay the full amount or at least the minimum due of your credit card bills every month to avoid getting interest charges.
3. Keep a continuous check of your credit report.
Checking your report once every month is a great habit. It's really easy to check your credit report on IndiaLends. With IndiaLends, you also get a detailed analysis of your credit report to understand exactly where you're making mistakes (if any) and how to avoid making them.
You can have a great financial portfolio by adapting these habits to your everyday lifestyle. As the year unfolds, may your efforts towards financial health bring you stability and the freedom to welcome new opportunities and aspirations. Here's to a financially empowered and prosperous 2024!
