Money comes and go away? Adopt these 10 habits, there will never be a crisis in life

Most of us have the same story – the salary comes as soon as the month starts and when it ends, it is not known. We think that they will save sure money from next time, but they never come ‘next time’.

Management of money is not a rocket science, but there are some direct habits that if you have included in your life, you will never be worried about money. These rules depend on your thinking, not on your salary.

Let us know the 10 smart rules of money that everyone should know:

1. Keep the address, where is the money going (making budget)
The first step is to know where your money is being spent. Make a thick account at the beginning of the month. You can adopt the rule of 50/30/20: 50% money on needs (home fare, ration, bill), 30% on desires (walking, shopping, movie) and 20% on savings and investment.

2. Save first, then spend pay yourself first
Our biggest mistake is that we think of saving what we survive after spending everything. Flip the rule. As soon as the salary comes, first of all extract 20% of savings and investment. Now run the entire month from what is left.

3. Fund of sudden trouble (Emergency Fund)
No one knows when it happens in life. Go to work or be ready for any medical emergency, any such trouble. Keep money equal to your 3 to 6 months’ expenses in a separate saving account, which you will touch only and only in emergency.

4. Do not press under borrowing burden (avoid debt)
Credit card and ‘Buy now, later Payo’ is the era of Buy Now Pay Later. But always avoid unnecessary debt. Large and essential loans like home loans are fine, but taking things on EMI for expensive hobbies can trap you in a debt trap.

5. Security of your own and family (insurance)
Do not spend insurance, but consider a safety shield. Two insurance are the most important: one health insurance (for disease expenses) and the other term insurance (if something happens to the family’s financial security).

6. Put money to work (start investing)
It is not enough to save money only, it is also necessary to invest to protect it from inflation. The sooner you start investing, the more benefit will be. You can make a small start in mutual funds through SIP.

7. How to save without target? (Make financial goals)
Why are you saving money? Want to buy a house, take a car, children’s education or walk? When you have a goal, it becomes easy and fun to save money.

8. Be a support for old age (retirement planning)
You should get the fruits of today’s hard work in old age. For retirement, start keeping a little money separate from today, so that you can live your old age without relying on anyone.

9. Tax saving is also earning (tax planning)
You pay a part of your hard earned money on tax. The government has given many legal ways to save tax, such as 80C. Use them and save as much money as possible.

10. Take review from time to time (Financial Review)
Take stock of your entire financial situation at least once a year. See how your investments are doing, have your goals have changed? It is like a financial health check-up.

Adopting these rules may seem a bit difficult to initially, but believe me, these small habits will make you financially free.