Financial decisions are the toughest one. Some People are afraid of making these decisions because it involves different many risks and others do not like using calculators or playing with numbers. Delay in making financial decisions now may land you in a crisis later. Moreover, it is always good to manage the money you have earned after making hard efforts. However making same efforts for budgeting is not a good idea. To relieve you from these worries, we will introduce you with 8 tips to make financial decisions with fewer efforts.
1.Stick to one or at most two banks to open your accounts. Opening accounts with multiple banks is no more a good idea as PAN has become the unique identifier in case of financial transactions. Also, it becomes easier for you to explain the various source of your income to the Taxman who will further help you fund expenses and investments. So avoid opening a new bank account the next time you change your job.
2.Let you Bank account pay taxes, EMIs, bills and other payments for you. For this, you can give standing instruction to the bank. This will help you keep track of income and your expenses. It is always easier to rely on a single source than to juggle with multiple sources.
3.Cash is old. With debit or credit cards all your expenses will be documented for you. You can spot see how much money you have spent and how. To keep record of your finances make three estimations
One- Sufficient Income
Two- Limit your expenses
Three- Consistent Savings
If your data is incorrect or incomplete, then it will be tricky for you to take charge of your expenses and budget.
4.Reduce the number of intermediates you are dealing. Involvement of broker, adviser, banks, and accountant make your financial life complex and uncontrollable. It is always wise to hire a financial counselor who can handle all of your financial matters and help outsourcing the functions he cannot execute.
5.Limit the number and sortof products in your portfolio. The idea of too many funds, insurance, stocks, bonds is never sensible. It shows the sign of uneven portfolio which will affect your ability to hold bits and pieces of your wealth. Stick to one reputed firm that can serve you in multiple ways.
6.Say YES to Passive investment. Passive investment is investing in products that do not require regular monitoring. These products include large-cap stocks, index funds, deposits or government saving schemes. Though it won’t make you earn much but it will save you from various risks of wrong decisions.
7.Avoid big business with investment cash flow unreasonably. Even if the lock-In period of your tax saving fund is over and you are not in need of money at this time, don’t redeem your funding. A penny saved is a penny earned. Same way money saved gets renewed over maturity. Don’t spend it recklessly rather invest it and reinvest it.
8. Make saving your Habit. All the above mentioned tips will work only if you are not spending money pointlessly. So remember not to save after spending but spend after saving. Save and keep this amount transferred to your bank account on a routine basis.
So get up and spare some time to enforce these rules to your financial life to make it easier. You may actually be able to free your mind space from preventable money related worries.