Good Financial Habits To Develop On

Like our childhood habits determines your lifestyle, your financial habits reflects your wealth in your later years. Good financial habits are to be developed from your initial earning years. To lead a good financial life, you should develop some good financial habits. To know more, read the full story-

  • Once you started earning, set a savings goal- There is a saying- “Rome was not built in a day”. Likewise your wealth creation doesn’t happen overnight. It has to be laid step-by-step. First stepping ahead to save from your first salary is important.

Once you received your first salary, think over your future 25-30 Years ahead. Ask your grandparents about purchasing power of money in olden days and then your parents. You may be surprised to hear huge “Inflation”figures in India.

As the purchasing power of money decreasing and prices are rising at sky-high assume the corpus you needed at 25-30 years later. Estimate the corpus you required during your retirement and set a savings goal to achieve it.

  • Start investing as early as possible– Once you decided your target amount, search for various investment avenues to reach your goal.

Do remember savings alone won’t suffice you meet your retirement goal; you have to invest. For that start investing early as power of compounding works in favor of you if you give time to your investments.

Being young, you can manage risk as you have no financial responsibilities at that age. Financial experts says “This is the Best Time to start investing”. If you invest in your 20’s and 30’s you could create a huge corpus when you retire.

  • Don’t fall prey to higher interest debts– Once you are employed many financial institutions forces you to take personal loans and credit cards.

As financial institutions and NBFC’s offering great deals, you get tempted to take loans which are not needed as of now.

Personal Loans and credit card dues carries high interest rates where the individual can’t feel the pain till the bill is generated. Credit card carries 36-48% interest rate per annum and Personal Loan carries 12-15% interest.

These higher interest rates run away your savings where you fall in the debt trap. Don’t get tempted by the marketing calls offering personal loans and credit cards.

  • Try To Maintain a Good CIBIL Score– In India there are two types of loans-
  • Good Loans– These loans tend to appreciate the value of the asset in the future. Example- Educational Loan, Housing Loan etc
  • Bad Loans-These loans depreciate the value of thhe asset and carries higher interest rate. Example-Car Loan, Personal Loans, Credit Cards etc

Out of these opt for good loans. They increases the value of the asset. By avoiding bad debts you can automatically maintain a good CIBIL Score.

For taking good loans, you need good credit history. So try to avoid bad loans as much as possible and maintain good cibil score for faster processing of loans.

  • Get Inspired From Great Mentors– You will need suggestions on deciding where to invest, where to settle and how to settle in life.

There are great mentors to get inspired. In this faster-growing world you can find information on their lifestyle at your finger tips. Vast information is available on the internet, you can search and follow their preachings.

  • Never Stop Learning New Things– Many think that they are employed, earning five digit salary figures and get settled in life. Are you thinking like that?-Change your attitude.

You have to be updated with the latest skills and courses from time to time in this digital era. Don’t get relaxed instead try to learn new skills up to date in this competitive world. Then only you will be succeed in life.

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