3 Tips to manage your wealth the right way

Posted by Shaheen Shaikh on July 10th, 2019

Over the years, we have certainly amassed the knowledge of how to use our finances in the right way to avoid or overcome debt. The “out of debt” success stories have revealed that one of the ways to get out of debt or not get into debt is by having a proper financial plan in place.

There are many ways to manage your wealth, such as savings account, mutual funds, and fixed deposit. While it can be challenging to save up a certain amount each month, we give three easy tips to manage and create more wealth the right way.

Plan ahead:

One of the reasons why most people opt for a savings account or mutual funds or fixed deposit is because they have a plan forward. What you want or expect to achieve in the near future is a great motivation to commence your financial planning. Once you plan on what you want to do in the near future, then you can put a monetary figure, you need to achieve this goal.

When you have a clear idea about the finances, then create a budget. The budgeting will help you know how much you can save each month. While creating the budget, you can also estimate the interest that you will reap from the mutual funds over a specified period.

Understand your income:

Perhaps the most important aspect while planning your finances or setting goals is to know your income and day-to-day expenses. So, what you need to do is calculate your total expenses and subtract it from the monthly income. The amount that is then left can be put in any of the instrument of the savings or you can divide the amount and save it difference financial saving instruments such as fixed deposit or mutual funds.

Chuck the unnecessary expenses:

One of the many reasons why you can’t save is because of the unnecessary expenses that you probably indulge in. So, cutting down on that extra Starbucks latte or going for that extra round of beer can help you save some money for a rainy day.

Similarly, buy a membership for the gym or the swimming pool or yoga classes only if you are sure of attending them. Selling off non-usable stuff from the storeroom or the attic is another way to get some help with the finances.

Managing your finances may sound tedious, but, with the tips as mentioned above, we hope you sail through it smoothly. Plus, the extra money will also keep your stress of ad hoc expenses at bay.