On World Yoga Day, let go of stress and attain that elusive peace of mind by embracing the art of Yoga.
We lead a fast-paced life. We are surrounded by fast cars, fast foods, high-speed internet and all sorts of luxuries at our fingertips, and yet we find ourselves waging a war against time – 24 hours in a day are just not enough. A fast-track life can be very stressful and could be destructive to your peace of mind. Today, on World Yoga Day, let go of stress and attain that elusive peace of mind by embracing the art of yoga.
While you seek internal tranquillity by immersing yourself in yoga, let us take care of some financial worries that might be giving you sleepless nights. BankBazaar presents ten financial tips to attain peace of mind. Let’s dive in!
Keep Your Credit Card Expenses Under Check
Credit Cards give you the power to shop at will. But, one must acknowledge that this power of shopping is accompanied by the responsibility of settling the bills later. Limit your Credit Card expenses and always pay off the balance in full. Minimum due payment will attract interest and will only increase your debt. Avoid impulsive swiping of your Credit Card as it could lead to a huge debt which, in turn, will affect you, mentally.
Pay Off Debts On Time
Be it Credit Card bills or loan EMIs, paying off debt on or before the due date is not just good for your Credit Score but also great for your financial well-being. By paying your loan EMIs on time, you can avoid late payment fees. And by clearing off the entire Credit Card bill on time instead of just paying the minimum amount, you can avoid burning a hole in your pocket as you won’t have to pay any interest. Timely payment of bills is the way to lead a worry-free financial life.
Work To Improve Your Credit Score
If you have ever applied for credit through loans or Credit Cards, then you will know the importance of having a good Credit Score. A decent Credit Score tells lenders that you’re responsible when it comes to managing money and they will be more likely to approve your loan application because of this. As your Credit Score plays an important part with respect to getting a credit, knowing that you have a good score will contribute to your peace of mind. Here are a few good financial habits to improve your Credit Score:
i) Paying Credit Card bills and loan EMIs on or before the due date will improve your Credit Score over a period of time. Note that the amount should reach your bank on or before the due date.
ii) If your credit utilisation ratio is more than 20%, then increase the credit limit of your Credit Card so that your total Credit Card expenditure remains less than 20% of the credit limit, which will, in turn, improve your Credit Score. You could also get another Credit Card and distribute your expenses across the two but ensure that you don’t run up huge bills on either.
iii) Your Credit Score will improve immensely if you start paying the Credit Card bill in full instead of paying only the minimum amount due.
Additional Reading: 7 Ridiculously Simple Ways To Pay Your Credit Card Bills
Invest In Your Future
One of the biggest financial worries that plague everyone is the fear of having no money for future events like your child’s education, wedding, retirement, etc. The only way to stop worrying about the future is by investing in the future. Start saving for the future by investing in high-yield investments such as Mutual Funds. Separate your investments based on your goals.
Build An Emergency Fund
A financial crisis like loss of job or medical emergency can strike at any time. And a sense of panic and despair sets in if you don’t have enough money to sail out of troubled waters. Don’t wait for trouble to come knocking at your door and start building your emergency savings, right away. Follow a monthly budget and start allocating money for your emergency fund. Having extra money in hand will work wonders for your peace of mind during emergencies
Life is full of uncertainties. So, it is advisable to insure your life and your assets like your car, property, etc. to safeguard yourself against any untoward incidents. Buying Car Insurance frees you from the financial worry of loss incurred due to a mishap or theft of the car. Investing in Life insurance assures that your family and loved ones are financially sound even after your death.
Personal Loan Vs. Credit Card – Choose Wisely
Analysing the situation in hand and choosing the right financial product to bail you out of a monetary crisis can save you from a lot of financial stress. If the amount required is huge, for example, to pay a medical bill, opt for a Personal Loan as you can repay the debt in reasonable EMIs. If the amount required is something that you can pay off in a few months, then using a 0% APR Credit Card makes perfect sense as you can clear off the debt without paying a penny towards interest.
Protect Yourself From Credit Card Theft And Online Fraud
You must have heard the saying ‘Prevention is better than cure’. It is safe to say that protecting yourself from online fraud, Credit Card theft etc. is way better than running from pillar to post to get back the money you lost. Don’t buy products from suspicious-looking websites using Credit Cards. Do not fall prey to phishing. Cross check the authenticity of the websites’ URL. One of the best ways to know if a site is secure is to check if starts with https:// (as opposed to http://). Also, chip Credit Cards make it difficult for thieves to steal your information. They are encrypted for your safety.
Already Burdened With EMIs? Avoid Loans
If you are swamped with the EMIs of existing loans, then don’t take a new loan until you have paid off the existing ones. Struggling to repay a mountain of debt with your monthly income or dealing with a loan default will only lead to financial stress and worries.
Invest In Tax-Saving Schemes
Taxes can be a headache as no one likes to see a part of their hard-earned money being deducted. But instead of fretting over the amount of salary deducted in the form of tax, it is better to take some action by investing in tax-savings schemes like Public Provident Fund, Equity Linked Savings Schemes (ELSS) of Mutual Funds, tax-saving Fixed Deposits, etc. When you realise how much you can save by investing in tax-saving schemes, it is bound to bring you peace of mind.
So this Yoga Day, breathe in good money habits and breathe out monetary worries to attain peace of mind! Deep breath. Relax.