Nov 25 (IndiaToday) – We might have a pile of wishlists and vacay-temptations on our minds right now. Yet, we end up spending so much in these times that our finances take a toll after the vacation ends or once the wish list is fulfilled. These are times when you want to learn how to manage it, splurge it and yet save it. Here to help is CRED, a transparent and fully digital platform that aims to promote financial wellbeing, stability and knowledge amongst consumers. CRED works towards creating a holistic arena of confident and alert people in its member base.
While shifting our workplaces to our homes, many of us started off with the thought that it is going to help us save up extra cash. Instead, the pandemic served as a strict reminder to manage money responsibly. Needless to say, in a time full of uncertainties, one needs to be watchful with their spendings and to demystify financial management assumptions with a basic approach.
CRED has put together a 10-step guide that will help you ace money management.
Create a budget
The first step of creating a budget might not sound interesting but is actually the most critical task that must be done regularly. This helps us in provisioning for anticipated expenses along with making sound lifestyle choices. This first step can help you pay off debts at the right time and save for future expenses. Budgeting is basically synonymous to bringing balance in your life.
Keep a track of your expenses
Many people tend to miss out on keeping track of their regular monthly expenses. To combat that, you must try to begin with tracking all types of expenses be it by cash or by credit cards. This will help with managing and comparing expenses on the whole and make any necessary adjustments.
Social pressure and money management
We have all been in a dilemma of pleasing our friends and peers or being responsible with money. More often than not, we give in to social pressure and spend our hard-earned money on things that are not budgeted for. A simple way of handling this is to review your expenses every day and if there is surplus – then reward yourself with a day out with friends or buy something from your wishlist.
Save! Save! Save!
Another thing the pandemic taught us is to expect the unexpected. People who planned their finances better were able to manage the sudden disruption smoothly. For a healthy personal finance plan it is very important to save for the ‘rainy day’. You will always thank yourself for this!
Investing your savings!
While saving is a much needed option, so is investing. This is how you take charge of your financial growth and security and add additional income streams to your unchanging flow of income. Making regular investments will not just help you set aside a sum for a rainy day but also help accumulate funds regularly, thereby instilling the right attitude of financial discipline in the long run.
Understand your credit score
A credit score is an important asset that determines how creditworthy you are thus increasing your chances of borrowing finances in future. A good score would be about 700-750, which can be obtained by keeping the credit card balances low, paying off your debt on time and paying off your bills timely. A good credit score also allows you access to platforms like CRED that offer perks and rewards to its members based on their financial habits.
Educate yourself with money matters!
Staying well-informed comes really handy in terms of financial matters. In today’s world, it is really important to trust nobody but yourself. It is not easy but apps like CRED are aiming to educate people financially and manage money more effectively to make the whole process easy.
Prioritize your debt repayment
In the process of gaining positive financial success, debt repayment should become one’s priority. Any kind of debt, be it credit card loans, student loans, home loans, or even repaying your friend who helped you when you needed some money needs to be eased off in order to reduce the financial stress and approach towards a proper management of money.
Use coupons and cashbacks
To save every cent possible, try to avail discount coupons and cashbacks while shopping online or making any kind of purchase. This might feel burdensome to hunt for coupons available but this practice over time will pay off with good rewards, savings and maybe another purchase.
Reviewing your financial goals now and again
Start off with setting financial goals, be it big enough as buying a house or as basic as purchasing clothes. Now that you have your goals in place, keep updating and reviewing them now and again and make required changes in your financial proceedings.
It’s never too soon, or too late to start planning around your finances. Therefore, sift through these very easy steps and start off with your money management right away!