5 ways for amazing finances — Bonus step — Create a piggy bank. Gift your self something this year.
It’s been a hard year. Be grateful to yourself and buy something you’d like to get.
Now, go on and spend 2 minutes going through below.
Trust me, easy does it.
Bonus step 0 — Make savings fun. Start a piggy bank. Go back to when saving pocketmoney was fun. :)
Use it to buy yourself a nice new year’s gift.
Step 1 — Save First.
As soon as you get your pay, save a portion. Whether it is a fixed deposit or recurring save it. Usually, we leave saving till month end and guess what; almost everyone we know is broke after 20th.
Save first do build a habit of savings.
Step 2 — Do not use a Credit card.
This is by far the most important step in financial health. They will offer you CC, banks, customer care and friends too. Everyone has their own interests at heart. You do you man.
Never get a card, unless you’re 1000%(that’s an intended extra 0) financially responsible.
Credit cards are cause of ruin of millions, and take 36–48% interest. They are the most beneficial instrument for a bank and that’s why they sell it to you.
Step 3 — Practice Automation
Don’t worry- this is not a coding class, it’s just a process.
Build automated savings routine to relieve you of the decision. If you earn 10000 and save Rs.1000(step 1 ) you have to take a decision each month. Instead automate it, set up an automated transfer a separate account/Recurring deposit.
When you don’t have that money, you won’t spend it. Out of sight, out of mind..
Step 4 — Do not buy things on EMI.
I understand the lure of the shiny new gadget; the Iphone 12 and the new OLED TV. If you want to buy it, buy it outright or don’t.
Do not create an EMI. If you want to buy something, give it a month.
Save howmuch ever you can in that month. See if you’d like to buy it in the next month.
Mostly, you won’t. The lure wears out, something new comes along- more shiny and lustrous.
How does it work — Insta ads chasing you all over the internet, make you feel you want to buy something.
You probably do not.
If you do after a month as well, go ahead and buy it outright. Do not get an EMI.
Step 5 — Spend only in cash.
Try this for a month and log your expenses. You will be surprised to see the results.
You will spend way less, when using cash.
Basically — It is the hardest to spend and makes us financially responsible. Cash leaving from your hands is one of the feelings you don’t like. Nobody does.
The feeling of security is what we crave.
Spending cash for something makes you think hard. Money is being spent on something you might not even want.
Follow below steps in order to maximise your financial health and well-being.
