How to be smart with your money. best tips for your financial wellbeing

How to Be Smart With Your Money: Best Tips For Your Financial Well-Being

Do you often find yourselves broke and borrowing money at the end of every month? Well, you need to get smart with your earnings. Let us help you with some of the best tips for your financial well-being.

Everything we hope to achieve in this world has a cost to it, sometimes monetary, sometimes figuratively. As children, our money-saving lessons start when we are gifted a piggy bank, and we look forward to every little penny we will get to put in it. When we grow and start buying things, we begin to realise the value of money. And money becomes dearer when we start earning it with our capabilities. Over time as the conflict of needs vs wants plays in, it comes down to managing your finances.

How to Be Smart With Your Money: Best Tips For Your Financial Well-Being

Paying bills, making investments, taking trips, splurging a bit on your everything has to have a balance. Every individual’s financial situation is unique to them and so it becomes necessary to manage it well. If you are worrying about how to save money and manage your finances, then keep reading!

1. Note down every little expense:

 In order to understand why you are left with no money, you must know where your money goes. Here are some basic questions to ask yourself:

– What are you spending the most over?

– How much are your bills?

– How much are you spending on food and entertainment?

– Is there any unnecessary expense that you could have avoided?

To know these answers, you will have to start making a note of every penny you spend within a day. A day-wise breakup will help you analyse your weekly spending and thus calculate your monthly average.

2. Create a budget: 

As redundant as it may sound, you need to fix yourself a spending cap. A budget will give you an idea of how much money you have at your disposal for routine tasks. It is very important to set this budgetary limit in accordance with your cash flow.

ALSO READ: A Guide To Creating and Managing Budget and Debts

3. Save for emergencies: 

Instead of going broke every month, you must learn to save for a rainy day. It may seem like a task at first, but even a small amount each week can make a big impact with consistency. Always keep your savings in a separate account with a condition that you will only use it for emergencies. These funds cannot be used for travel and entertainment. In case you fall sick, incur an accidental injury or need to help your family in need, you need to have some spare amount for unexpected expenses. And if you use it, be mindful to keep refiling it.

How to be smart with your money. best tips for your financial wellbeing
How to be smart with your money

4. Make investments: 

One of the smartest ways to grow your money is by investing it in reaping schemes, bonds or mutual funds. Every bank has its savings schemes and investment plans, some offering a high amount of interest. The terms like compound interest, recurring deposits, and tax rates can be confounding, but you can use a savings calculator to tabulate everything for you. Recurring deposits and fixed deposits are popular methods of investments people have been relying on for years.

5. Gain financial literacy: 

Unfortunately, a lot of us dismiss complex financial investments. But it is essential to be financially literate to manage your money. It will not only make you smarter about money but also learn the value of your earnings and how you can grow them. You will be in an informed position when making further investments.

How to be smart with your money. best tips for your financial wellbeing
How to be smart with your money

6. Take advantage of technology: 

Not everyone’s a math genius but thanks to the genius of technology, managing expenses can be much easier. There are apps to help you budget your money. You can set your goals for savings and the app will help to analyse your financial situation.

ALSO READ: Top 5 reasons why jewelry is a great investment 

7. Make gradual changes: 

You need to first adopt a money-saving attitude to implement changes that will help you make savings. You cannot completely stop doing things that you’ve been doing but when you are conscious about bringing a change, it will happen. You will automatically think twice before making an expensive purchase. You will question whether you really need something or you can do without it. When your end goal is about saving money, you will start making gradual changes.

8. Keep track and compare: 

To know whether your change in habits is really having an effect, keep comparing your expenses over the next few months. Check your savings balances and see if you do have spare money left for your other expenses.

9. Short-Term vs Long-Term Goals: 

When you lay down your financial goals, categorise them as short-term and long-term. What is your immediate purpose for financial well-being, is it to clear debts or to take an international trip? Having your aims laid out will also help in working towards them with clarity.

How to be smart with your money. best tips for your financial wellbeing
How to be smart with your money

Saving Money: An Important Life Lesson 

Most of us have seen our parents always instructing us to save money and we only understand it when we reach a level to organise our own finances. In today’s times, one really cannot predict what’s coming next. The pandemic has been a lesson on why having savings is important. While it is okay to have a ‘seize the day’ kind of attitude on some days, you cannot truly sustain it. A considerable amount of savings will make you feel independent to live on your own terms. 

Savings also provide security to face emergencies. Planning a long vacation, getting married, buying a home, or starting your own business, all of these major decisions require many paycheques. To live a stress-free and financially independent, the ability to save money is vital.

Every person dreams of upgrading themselves and improving their lifestyle. But only steady work promotions and increasing salaries don’t enable it. Your savings also need to consistently rise because we need to account for inflation tendencies. A savings amount builds a kind of safety net around you and your family that you have financial independence rather than completely relying on a third person. Learning to save money and being smart at investing it, is thus one of the important life lessons.


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18 thoughts on “How to Be Smart With Your Money: Best Tips For Your Financial Well-Being”

  1. Great tips! I will say I am very good with tracking all my transactions and trying to save. I even teach my kids on how to be smart with their money!

  2. This is a much needed post in the day and age that we are living with crazy inflation and all of that. I have been looking for ways tom cut back and to help with that as well and these tips are a great resource! Thank you!

  3. This is all great advice. I would strongly recommend saving for emergencies. You never know when something might crop up. It’s best to have money set aside in case.

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