Diwali is around the corner and is a perfect time to start some good financial habits. Traditionally, it is also a time to buy some good/valuable new things. We treat it as a beginning of New Year.

How about this Diwali we start with some good financial routines to secure our financial future with blessings of Goddess Laxmi? Sounds good? Let’s jump in then.

Spend Less & Save More:

You can put an automatic limit on your spending by diverting a fixed sum of money as savings after you get your paycheck every month.

Savings depends a lot on your spending habits and lifestyle. If you are ready to make changes to your spending habits and also to lifestyle then it will be easy to save more. Adding some fiscal discipline to our lifestyle and maintaining it will help with your monetary decision making.

Create a Budget for Expenses:

It’s always a good idea to maintain a diary of all your daily and monthly expanses. Remember, our elders used to tell this and we can’t keep ignoring it. This will help you out to identify unnecessary expenses that you can possibly cut down or postpone. Allocate a fixed budget for every expense and that can help you save more.

Invest Regularly & Wisely:

Saving money is good but investing it wisely is equally important. Your Investments not only help grow but also helps accumulate wealth over long term. It is important how and where you invest. There are many investment options available like equity, mutual funds, bonds, real estate etc. Investing wisely in suitable options can generate positive returns and wealth in long run.

Keep aside about20% of your savings or about 6 months of expanses ,  in liquid assets as an emergency fund. You can utilize this money in contingency or urgent situations.

Pay off Debts as early as possible: 

Paying off your debt as early as possible is one of the important steps for a truly financial freedom. In case of credit cards, do not use it for big transactions and try to clear your balances on cards as early as possible.

Make a clear plan for repayment if you are taking loan for buying house or a car. You  can pay an additional month of  house or car loan each to pay off your early.Liability of these loans will be much more, and major part of your income will go to these loans which can make it harder to save.

Teach your kids about savings:

Teach your kids about savings and its importance early which will help them in their future. Savings is not just a good habit but also provides an aid in case of illness or accident or disability. it also helpful in achieving different financial d goals like retirement, kid’s education/marriage etc.

In addition to the above financial habits, it is equally important to take care of your health. Consider a good health insurance plan and don’t forget regular check-ups. Add some workout and health eating habits to your lifestyle. Embrace good habits to keep yourself healthy and wealthy.

Happy Investing!

Note: This Fund-Matters article got published in a digital Marathi Diwali magazine.