10 Best Methods of Managing Personal Finance
Come New Year and we all get into the resolution-making mode, deciding to break off bad habits and inculcating savings on a regular basis. Unfortunately what begins on the 1 st of January quickly loses steam and in a couple of months, the resolutions are put on the back-burner as old habits come rushing back.
Ask yourself the following questions:
Have you ever considered taking a loan against property due to financial
shortfalls?
Do you regularly miss a payment due dates of electricity bills, mobile bills or
credit card payments and end up paying late fees?
Do you make impulse purchases only to regret it later?
If the answer to the above is yes, then it is necessary to check your financial health. To help you to do this easily, here is a list of effective way to manage personal finance:
Analyse your financial relationships: Ask yourself whether it is necessary to have multiple financial relationships for a similar family of products. Make life easy by discarding multiple credit cards which promote unnecessary spending. Do you really need 2-3 bank accounts? If you have multiple Demat accounts, merge them into one and transfer all stock and mutual funds into a single account.
Buy Life Insurance: One of the primary requirements of a peaceful life is life insurance. Buying the appropriate amount of Life Insurance is essential as it guarantees financial independence for your dependents and complete peace of mind for you.
Buy Health Insurance: Emergency medical expenses and planned surgeries can create a large and often unfillable vacuum in your savings. Include your wife, children and parents if possible to make sure that medical costs can be recovered from the insurer. It is prudent to buy health insurance even if your company covers you under group insurance as this will expire after you retire.
Take care of Debt/Loans: Although loans are a part of modern living and EMI is an easy way to pay large amounts, it is best to pay off high-value loans. Prepay your home loan whenever possible or you can even write off the entire amount in a single stroke if you choose to. If you have taken a high- interest loan, it will be a good idea to avail of a low-interest loan to pay off the earlier one.
If there are credit card expenses that have grown over a period of time, use an online personal loan calculator to check the loan amount and EMI you can avail. This is a smart idea to eliminate “bad loans” by taking “good loans”. Having done that do you already see your financial health showing signs of improvement already? This means that you are on the right track to managing your personal finance.
Ask yourself the following questions:
Have you ever considered taking a loan against property due to financial
shortfalls?
Do you regularly miss a payment due dates of electricity bills, mobile bills or
credit card payments and end up paying late fees?
Do you make impulse purchases only to regret it later?
If the answer to the above is yes, then it is necessary to check your financial health. To help you to do this easily, here is a list of effective way to manage personal finance:
Analyse your financial relationships: Ask yourself whether it is necessary to have multiple financial relationships for a similar family of products. Make life easy by discarding multiple credit cards which promote unnecessary spending. Do you really need 2-3 bank accounts? If you have multiple Demat accounts, merge them into one and transfer all stock and mutual funds into a single account.
Buy Life Insurance: One of the primary requirements of a peaceful life is life insurance. Buying the appropriate amount of Life Insurance is essential as it guarantees financial independence for your dependents and complete peace of mind for you.
Buy Health Insurance: Emergency medical expenses and planned surgeries can create a large and often unfillable vacuum in your savings. Include your wife, children and parents if possible to make sure that medical costs can be recovered from the insurer. It is prudent to buy health insurance even if your company covers you under group insurance as this will expire after you retire.
Take care of Debt/Loans: Although loans are a part of modern living and EMI is an easy way to pay large amounts, it is best to pay off high-value loans. Prepay your home loan whenever possible or you can even write off the entire amount in a single stroke if you choose to. If you have taken a high- interest loan, it will be a good idea to avail of a low-interest loan to pay off the earlier one.
If there are credit card expenses that have grown over a period of time, use an online personal loan calculator to check the loan amount and EMI you can avail. This is a smart idea to eliminate “bad loans” by taking “good loans”. Having done that do you already see your financial health showing signs of improvement already? This means that you are on the right track to managing your personal finance.
Comments
Post a Comment