10 tips for managing your personal finances better
1. Look for options:
When it comes to buying a mobile phone, we do through research and compare the features and the value we are getting for the money we are going to invest. We have to be equally proactive when it comes to financial services too. Before investing look for options, compare the returns and then take a sound decision.
2. Don’t be in extreme debt:
These days quick loan is the new trend. If you wish to own something, you can simply take a cash loan and get access to your desired asset. But, you need to keep in check the amount of debt you are taking over so that you don’t have to sell it off in order to pay the debt.
An unexpected situation can rise without any heads up. This means you need to have some funds to face the situation and don’t opt for a quick personal loan under such a situation.
4. Use a credit card wisely:
The habit of swiping credit cards can be addictive and disrupt your financial calculations. Use your credit card wisely or rather avoid using it completely if not required. In case of cash required for an emergency purpose, go for a quick loan which offers low-interest rates.
5. Use mortgage for longer-term debt:
If you think your debt or a personal loan repayment is going to take longer than the due date on your credit card to pay off then make sure it should be on your mortgage.
6. Start saving:
Even if the amount is small, start saving. To build a habit of keeping aside money every month will help you achieve your financial goals. You can also, opt for a personal loan in case you don’t have sufficient funds but your savings will always be your head start.
7. Always have a bigger picture:
A lot of people get disappointed when the market falls, this is bound to happen. The share market goes up and down, the key is to give it some time and be patient. The longer you invest, it is more likely that you will get good returns.
8. Invest carefully:
We hear a lot of schemes and offers from so many people and read about them on the internet too. Don’t fall for it, especially if it is too good to be true. Always, ask around 10 people before putting your money into some new financial asset. During emergency situations we don’t tend to think straight, this is the time when you can go for a cash loan instead of investing in any quick financial asset that promises instant returns.
9. Know your risk tolerance:
Don’t go overboard and risk all your assets and money, to get better returns. Always check your risk tolerance before investing in Mutual Funds or any such financial asset.
10. Diversify your portfolio:
Don’t put all your money into one financial asset, split your budget and invest money in different services. If you plan a big purchase don’t redeem your investments, instead get a cash loan and pay it off in EMIs.