Personal Finance tips for Adults

Posted by Trishya Sharma on November 11th, 2019

Who doesn’t imagine retiring as early as 45 and then spending the rest of your life in peace and happiness. Retirement at an early age is a dream for most millennials, but it takes a lot of financial securities to turn it into a reality. Most adults wished that they had known money management techniques at a young age. You are fortunate if you are earning well but expensive lifestyle can become a cause for concern. How often are you broke before the end of the month? Do you miss paying credit card dues on time? If your answer is yes, you are one of those who need to understand money management. Majority millennials spend a huge amount on groceries, fuel, restaurant, and clothing. This leaves behind a small amount for savings.

Here are a few personal finance tips which will help you manage your finances better and prepare for financial secure tomorrow.

1. Begin saving early

Whether you want to buy a new house, go on an exotic vacation or save for the future, you need to begin now! It is easy to think that you have all the time in the world to save, but you are wrong. You need to start saving right away. Even if it is a small part of your income, you need to begin saving now. If you are not sure how to start and how much to save, it is recommended saving one-third of your income if you can. Open a fixed deposit or recurring deposit account and make compulsory deposit as soon as salary is received

2. Understand how credit cards work

Using credit cards is common. Even though it is convenient, by the time you realize that you are in debt, the cycle is tough to break. The best way to deal with this is to increase your income and cut down on your expenses. The minimum due payment leads to higher interest repayment and is important to understand its implication.

3. Make a budget

You have heard this before, and you know how it works. Creating a budget and sticking to it is the best and the most effective way to save money. Making a budget helps you plan your lifestyle fun or emergencies in a better way and still plan an early retirement When you create a budget, you will bring financial discipline in your life.

4. Create an emergency fund

Life is uncertain, and you never know what might happen at the next moment. Your parents, You or any of your friends may also need it. Rule is whatever you save in name of emergency fund, do not use the fund for any purpose other than an emergency. Else in some cases, personal loan options like Personal Overdraft or EMI Free Loan can be taken.