Some people say money can’t buy you happiness. It, however, definitely brings a sense of security, if you handle your funds right.
Some people say money can’t buy you happiness. It, however, definitely brings a sense of security, if you handle your funds right.
Dipika Jaikishan, COO and Co-founder of Basis, says, “Without a grip on your money, you may always feel like your life is one step away from a financial escarpment. From the first paycheck, you should manage your money wisely.”
For instance, credit cards are known to be a boon in disguise. Proper use of them can benefit a lot. However, overusing them incautiously can land one in serious debt. Experts have always pointed out how it is easy to overspend and get stuck in debt with a credit card if one doesn’t know how to be disciplined with money and use these cards properly.
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Not having one on the other hand also means losing out on a lot of benefits, as they generally come with a lot of advantages and benefits. Such as, not only does it provide instant credit with an interest-free period, it also gets you subsidized access to your preferred lifestyle and/or travel categories, along with rewards such as cashback and discounts.
Additionally, usage of credit cards also impacts your credit score directly. Maxing out on your credit card affects your credit score. Hence, when using your credit card, do not use the full amount on one credit card. Making prolonged or late payments also affect your credit score. Cancelling a credit card also affects your credit score.
Similarly, given the current situation, it is extremely essential that we also have our insurance in place for uncertain events which may put a significant financial strain on us and our families. Insurance has often been one of the least understood financial products. While the importance of insurance has certainly increased over the years, most still do not consider it as one of the top priority products that they should have in their portfolio when they are working on their personal finances.
Few rules to have disciplined money management:
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- Be well informed about your income, assets and liabilities to manage them profitably.
- Never be only dependent on the wealth that you create while you are working. Jaikishan explains, “One should consider creating wealth from one’s savings as well. Do not let the money sit idle, let the money work for you.”
- Have a mindful approach while spending your hard-earned money and keep a track of every spend, and analyze it at the end of the month.
- Investment in financial instruments is advisable, but do not gamble with your money without a complete understanding of its risks. Jaikishan points out, “One should seek expert advice before investing in any financial device or product without proper understanding.”
- Have your health and life insurance in place; health covers protect your wealth and also ensure you get the right treatments. “A term life insurance cover goes a long way to protect one family’s wealth and ensure in case of any liabilities they don’t fall onto the heirs,” adds Jaikishan.
