This World Kindness Day, we’re looking at what kindness is through a different lens. We’re focussing on a more personal angle to talk about our own financial well-being and how being kinder to ourselves in this regard, can go a long way for us and our families.

Kindness can paint a very pretty picture in our heads if we think about it. Mostly what comes to mind are thoughts of giving to others—helping a friend, donating to a charity, or lending a hand to someone in need. While these are essential and necessary acts of kindness, we are looking inward this year, to show you how financial self-care can be just as important. 

Let’s dive into how practising financial responsibility can bring peace of mind, security, and happiness to you and your family while transforming your finances into a source of empowerment and stability.

1) Kindness in Staying Out of Credit Card Debt

Credit Card debt is more than just a financial burden—it can also bring stress, anxiety, health issues and even strain on relationships. Making an intentional effort to stay out of debt is a significant act of self-kindness and a gift to those you love. When you’re not weighed down by debt, you have more freedom to invest in experiences, emergencies, or future goals without feeling financially trapped. 

Here are some simple strategies to help you along the way: 

• Set a Realistic Budget: Know your income and expenses and create a budget that includes paying off your Credit Card balances in full each month. Sticking to this budget prevents overspending and helps you avoid high-interest charges.

• Avoid Impulse Purchases: By taking a moment to think about purchases, you’re giving yourself a chance to prioritise what really matters. This act of restraint is an act of self-respect and can keep you from falling into debt.

• Pay More Than the Minimum Each Month: While paying the minimum on your Credit Card bill may seem manageable, it often leads to lingering debt due to accumulating interest. By making it a habit to pay more than the minimum—ideally paying off the entire balance each month—you avoid extra interest charges and shorten the debt repayment period. Even a small amount over the minimum can help reduce overall interest costs significantly. 

Additional reading: 8 Credit Card Hacks to Crack Festive Season Savings!

2) Kindness in Choosing the Right Credit Card

Credit Cards can be powerful tools when used wisely. By carefully selecting a card that fits your lifestyle, you’re setting yourself up for financial success, maximising your spending without falling into debt. Consider this as a form of kindness, too. Rather than using just any card, you’re taking the time to pick one that aligns with your goals, whether they’re cashback on essentials, travel rewards, or low fees. 

Here’s how to choose a card that works for you: 

• Identify Your Needs: Are you looking to earn rewards on groceries, fuel, or travel? Or is a lower interest rate more important? Understanding your priorities will guide you to a card that truly benefits you.
   
• Compare Rewards Programmes: Look at how points or cashback accumulate and pick a card with rewards you’re likely to use. This ensures you’re not tempted by irrelevant rewards, using the card for purchases that make sense for your life.
   
• Consider Fees: Some rewards cards come with annual fees, while others don’t. If you’re not using the rewards frequently, a no-fee card may be a better fit for your budget. 

Additional reading: How to Break Up With Bad Spending Habits 

3) Kindness in Checking Your Credit Score Regularly

A high Credit Score can open doors to better interest rates, relevant Credit Card offers, and financial flexibility. By regularly checking your Credit Score (view now for free), you’re practising a form of kindness towards your future. It helps you spot errors, detect signs of fraud, and understand where you stand before making major financial decisions. Checking your Credit Score can also prevent unpleasant surprises when applying for a loan or mortgage down the line. 

Simple ways to make sure you’re on top of your Credit Score: 

• Use BankBazaar: BankBazaar always wants you to be in complete control of your personal finances. So, in order to help you with this goal, we have made provisions for you to check your Credit Score and download your full credit report hassle free, whenever you choose!

• Address Issues Promptly: If you notice any unusual activity or errors, address them as soon as possible. Being proactive not only keeps your score high but also reduces stress.

• Set Reminders: Make it a habit to check your Credit Score often or at least once a month. Tip: Regular Credit Score checks do not impact your finances negatively.  

• Monitoring your Credit Score: Being aware of your credit report is a form of self-care that can directly impact your ability to achieve financial goals. It’s a powerful way to show kindness to yourself and secure your future well-being. 

Additional reading: How 1 Late Payment Knocked 117 Points Off This Person’s Credit Score

4) Kindness in Teaching Financial Literacy to Family Members

Another way to spread kindness through finances is by teaching family members about budgeting, saving, and responsible spending. Financial literacy is an invaluable skill and passing it on helps set loved ones up for success. By fostering open conversations about money, you’re creating a supportive environment that promotes security and mutual respect. 

Some ideas to get you started: 

• Involve Your Family in Budgeting: If you’re comfortable, involve your family in basic budgeting exercises. This can be especially valuable for teenagers who are learning about money management.

• Discuss the Benefits of a Good Credit Score: Explain to family members why a high Credit Score is important and how it can affect future financial opportunities.

• Encourage Saving Together: Create a family savings goal, whether it’s for a holiday, an emergency fund, or a large purchase. Working towards a goal together promotes teamwork and discipline. 

Additional reading: Talk Finances with The Kids!  

5) Kindness in Giving Back: The Financial and Emotional Benefits of Charitable Donations 

Last but not least, is an often-overlooked form of financial kindness, charitable giving. In India, under Section 80G of the Income Tax Act, individuals can claim tax deductions on donations made to eligible charitable organisations and relief funds. This means that by giving back to causes close to your heart, you’re also able to claim a tax deduction of up to 100% or 50% with or without restrictions—a small reward for your kindness that can positively impact your finances. When you choose to give, it not only benefits the recipient but also offers advantages for your financial well-being.

Charitable donations can be deeply fulfilling, offering a sense of connection and purpose. They’re a reminder that financial well-being isn’t just about personal gain but can also be a means to help others. Donating regularly, even small amounts, contributes to social good while giving you the added benefit of tax savings. In this way, being charitable is a financial kindness that comes full circle, benefiting both you and the community. 

Wrapping Up: Financial Kindness is Real Kindness 

This year let’s choose to do better on our own financial journeys since we now know better. Here’s wishing you good luck to use from this day forward as you show compassion to yourself that also extends to the well-being of your loved ones and family!