5 habits to build a healthier and wealthier 2022
Most of us step into a new year with brand new goals, resolutions, and targets we set for ourselves. The majority of the people want to start eating healthy, get fit, and maybe find ways to save more money. In fact, a significant chunk of the population sets goals to invest more, control haphazard spending habits and put a check on unnecessary expenses. However, not everyone is able to stick to these habits. The ones who manage to pull through are the ones who have evolved their attitude towards money. Investment behavioural patterns of such people are inspiring and worth following. Note that we aren’t talking about aping strategies because that will depend upon your individual risk profile! For all you achievers who want to know the best moves of how to improve financial health, these financial resolutions will help you to start and end the year healthier and wealthier: 1. Stick to a monthly budget One of the first answers to the question on how to improve financial health is related to money management and planning. It does not matter if you are earning the big bucks, your goal should just be to keep track of your spending every month and to make the most of every rupee you earn.
By creating a monthly and an annual budget, you can have your financial priorities in place. This way, you can spend responsibly and shop guilt-free. This can be done while making sure you have an investment corpus and multiplying your wealth. One of the most important things to remember here is to create a budget you can realistically adhere to. Building a budget does not have to feel like a punishment where you restrict and deprive yourself of the things you want. The monthly ‘budget’ should not burden you. TejiMandi is a SEB I registered investment advisor and a subsidiary of Motilal Oswal that can help you draft a rough budget, and even help you with potential investment options that you can choose from. Contact Us To Know More. 2. Create an emergency fund Another masterclass in how to improve financial health is about creating a solid reserve of cash to fall back upon. Usually, financial experts suggest having at least three to six months of expenses as emergency funds in your bank account. You should preferably have an amount that will cover your medical bills or will suffice for other unforeseen emergencies. These are set apart as liquid funds that will provide cover for the rainy days. Not only will you have an excellent financial platform to resort to but you can also have easy withdrawals reserved for a tough period. All this will be possible without creating high interest on your credit card or having the need to apply for a personal loan. 3. Invest wisely The next step after creating an emergency fund is to smartly invest your money in investment schemes. These include Public Provident Fund (PPF) and other market instruments such as bonds, Exchange-Traded Funds (EFTs), etc. These will build wealth for you in the long term. Read more about 5 habits to build a healthier wealthier 2022