Poor money habits or lack of proper financial know-how can lead you to take poor financial decisions. To ensure financial independence, you need to be more confident and sound in all money matters.
So what can you do to improve your financial habits and empower yourselves to run your financial life? Here are 5 simple ways for you:
1. Make a Realistic Budget and Stick to it
Maintaining a budget and following it diligently is one of the initial steps towards improving your financial habits. If you are just beginning to manage your finances, then try not to overshoot your budget or keep sky-high expectations from yourself. Make a budget that suits your lifestyle and try to stick to it.
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2. Start a Side Hustle
In a world dominated by social media, anything can be sold with proper strategy and knowledge. So, start a side hustle, something that can either help you make more money today, something that acts as your second income should you face unexpected job security.
Also Read: Best Side Hustles You Can Start Earning With Now
3. Emergency Fund is a Big Yes!
Life is unpredictable and emergency funds act as a saviour. Building an emergency fund creates a financial buffer that can keep you afloat in a time of need, without having to rely on credit cards or high-interest loans. This can also help especially when you actually have debt because it can help you avoid borrowing more. You can start with as low as 20% of your salary for that matter. If planned strategically, emergency funds can cover up to 3-6 months of living expenses. But make sure you don't dig into your emergency fund until it's an absolute necessity.
4. Be Open About Your Finances
Be open about how much you are willing to spend on a given event to your family, friends or colleagues. If you cannot afford eating out every weekend, then don't! Spend the amount that seems affordable and realistic to you, without overshooting your budgets.
5. Manage Your Finances with Wizely
Wizely can help you build good financial habits while rewarding you every step of the way! In the Wizely app, you can earn scratch cards every day by completing simple financial tasks and participating in financial challenges. And every Wednesday, you will get a chance to claim a special Wizely Wednesday scratch card of up to Rs 25 lakhs in Mega Cash Reward!
Download the Wizely app now and start earning rewards while improving your financial habits.
Read more about Wizely Wednesdays here.
(Check out 'Learn & Grow with Wizely' 'to read and learn all about personal finance and financial planning.)
