Just checked your bank balance and you are worried about what you see?
Have you ever looked around you and felt that everyone else may have much better control over their finances than you? Don’t worry. We are here to give you some tips on money management that can help you attain financial security before you turn 30. Read on.
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The very first piece of advice you will hear is to spend money wisely. In case you are spending your paycheque way before the end of the month, watch out for this red flag that spells danger.
Although you’re not alone, this is not something to be comforted by. Many people admit to not having the habit of saving. Others save but don’t put enough money away. With some advice, we can help you change that.
First things first. Open a Savings Account with your bank and deposit a fixed amount in it each month. Here’s a tip: Get started by saving at least 10% of your income every month. Once you do this, you can start exploring options to invest your savings.
Set Financial Goals
Sit down and spare a thought for what you hope to achieve with the money that you earn. Set yourself realistic and achievable financial goals.
Decide a target age and plan how much you will need to have saved up by then. For instance, do you hope to have a home by the time you turn 35? Before you think of a Home Loan, give the down payment a thought.
Additional Reading: 10 Ways You Can Save For A Down Payment
How much will you need to have salted away to cover the initial down payment on your house? If you have not already thought about the type of house you want, set an estimate and work towards saving that much money.
If you are planning to pursue a higher education, plan your savings towards paying for your tuition. An Education Loan could help you too. You will also need to factor in how much money you will need to meet daily expenses for the duration of the course.
Additional Reading: How To Pay Off Your Education Loan Before Your 30s
Make A Realistic Budget
Making a budget is a very important step in successful money management. You need to set certain financial boundaries if you want to achieve good financial habits. What helps is setting yourself realistic financial goals and sticking to your budget. Analyse your expenses to find out where your money is going every month.
Additional Reading: 5 Reasons Why You Need A Budget For Your Home
If you think about it, splurging will sometimes help you save money later on. If you are making any big-ticket spends, consider buying something that is good quality. Spending a little more money here will be worth it in the long run. For e.g. if you’ve paid a little more and bought a good quality home appliance, you might end up saving quite a bit as you won’t have to shell out money on repairs and replacement of parts. Another means to save is by using a Credit Card to make your purchase. Credit Cards give you offers, cashback and rewards. Make the most of it.
Saving is a good way to ensure that you have money for any sizable expenses that may crop up, sometimes unexpectedly. And the sooner you start, the better. Saving money regularly doesn’t mean that you have to be on a strict budget. Treat yourself once in a while and enjoy the fruits of your hard-earned money.
Additional Reading: How To Plan For Your Retirement When You Are In Your 30s
If you’re looking to open a Savings Account or make investments, we have options for you.