The following article is an initiative of BankBazaar.com and is intended to create awareness among the readers.
The year is almost coming to an end and as we approach 2018, there is a lot you can do to make the coming year more financially rewarding. It is never too late to sit down and take a relook at your finances, see where you stand and how far you have gone as far as financial goals are concerned.In this article, we give you some money tips that will help you make 2018 a rewarding and successful year, financially.
- Save every week, not every month: Apart from what you save each month, from the beginning of 2018, start putting away some money each week. This is excluding what you save each month. You can save money on a weekly basis by cutting down on a few indulgences like that expensive coffee takeaway, online food splurges, expensive cab rides and eating/dining/drinking out. Let's say you save, Rs.600 each week, you will end up saving Rs.2400 per month, which will be Rs.28,800 each year.
- Use your credit card to spend less: It may sound surprising but you can actually save money if you use a credit card wisely. There are many credit cards that can help you save money because they offer a number of perks such as free lounge access at airports, waiver on baggage fees, extended warranty on purchases and other benefits like price protection. Also, if you have a rewards or a cash back card, you will earn points for all your purchases. Make sure you have accumulated enough reward points so that it can be used for a bigger purchase, like a flight ticket for example. This way, you will save more money and spend lesser. So apply for a credit card, if you do not already own one.
- Get a personal finance app: If managing your money can make you feel overwhelmed, get a personal finance app. This will help you keep track of your spending on a day-to-day basis. An app is easy to use and it is also free. There are a number of apps out there that you can use to plan your finances, set your goals, make investments and create a budget sheet.
- Plan your taxes better: A good strategy to save more money and make investments at the same time is by planning your taxes like a pro. There are a number things you can do to save tax. One of the ways to gain a tax benefit is by purchasing a life insurance or a health insurance policy. You can also go for a tax saver fixed deposit or other mutual funds that give you a tax benefit. This will help you save a lot of money on taxes.
- Try to have good debt: Instead of wasting your time, energy and effort on depreciating assets like electronics, whose value will only decrease with time, invest in an appreciating asset. If you have some money saved, 2018 can be a good year for you to purchase some real estate or a home. It is wise to apply for a home loan because it is one of the best appreciating assets that you can own in your lifetime.
- Have a retirement plan: Most of us do not have pensionable jobs and hence it is very important that you save enough money to keep you going even after you retire. It is wise to start saving money for your retirement and this does not include what you are saving in another savings account. You have to create another exclusive and separate account or fund that is only for retirement. This money should never be used for other purposes. This can be done by opening a Public Provident Fund for example.
- Go cashless to earn more rewards on your spending: There are many digital payments apps that offer cashbacks and rewards. This will go a long way in helping you save money. These apps are easy to use, free and can help you pay for almost anything on the go, the best part is that you need not carry money around.
- Start investing in 2018: It is a new year and it is probably the best time to make a new investment. Invest in a new Systematic Investment Plan (SIP) or start making investments in stocks and mutual funds.