Tips to have a great financial life

Tips to have a great financial life

by 5paisa Research Team Last Updated: Dec 14, 2022 - 09:21 am 30.1k Views
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Everyone wishes to have a great financial life, but very few actually get to live it. In this article, we reveal the secrets of having a great financial life.

Financial life planning is quite subjective and differs from person to person as everyone has their own perception of a great. Some might feel, having a big home, a sporty car and hefty bank balance means a great financial life. On the other hand, some might feel living in a peaceful environment and having enough money to cater the basic needs is a definition of having a great financial life. Although these are quite extremes and most of the population sits between these two.

Many are unable to get the desired financial life due to the vicious circle of the rate race. However, in this article we have tried to curate few secrets that would help you have a great financial life.

Have a well-defined budget 

Having a budget and adhering to it diligently is a good start point. Having a budget would help you cut down on unnecessary impulse purchases which again you might not use it for rest of your life gathering dust. Moreover, budget gives your finances a sense of discipline and you would have a better control over your spendings, rather than spendings controlling you.

Jotting expenses

Writing down expenses have two advantages. Firstly, it helps you understand what all expenses you incur and once you understand then you would be better able to control them. Controlling expenses would in turn help you boost your savings and investments.

Having an emergency fund

This is the first thing that you should start building as soon as you start your job. This helps you to remain calm during the times when receiving income is in question. So, have this as your piggy bank during the time of contingences.

Stating financial goals

Unless you know the destination, you can never reach there. So, having a financial goal is like having a financial destination where you wish to reach. This often helps you plan your investments in a more efficient manner and helps you avoid taking unnecessary risk.

Planning for retirement

This is the most crucial financial phase to have a great financial life. This is because, usually for most, retirement phase is either with low or no income. Moreover, the social security in India is also not so efficient to cover your lifestyle. Hence, having a retirement plan in place helps you to tide such a phase with ease.

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