I am strongly not recommending to reach out any personal finance planner India type services or use personal finance software India or any personal finance app India because every person has its own requirements and these does not fit practically.
I am trying to bring best out of personal finance management tips or money management tips India from my experience.
15 Great Tips to Manage Personal Finance in India
1.Create Passive Income Source or More Than one Income Source
You are already working somewhere which is giving you a fix salary every month. Push yourself to create a passive income source as well.
Find some time in your daily routine be it 1 hour or more, see what suits you best and create another earning stream. You need not to go out and work somewhere but you can manage your personal finance by online earning. Yes it is possible.
To make sure our financial management is on the right track despite of extra investment or expenditure we need to make sure there is some alternate income source.
You can earn from your writing skills, create a passive income source from social platforms like YouTube, Twitter ,Facebook etc.. There are many resource available from which we can start our alternate income.
Don’t let your money just sit into your saving account. Create an investment plan. Choose small and safe then make it large. Investment plans is an individual call and one can invest depending upon requirement.
You can invest in Fixed Deposit and expect a return of 3% to 7% or depending upon current rates.
Liquidity funds are also a good option with a return ranging from 5% to 8%.
Other options are PPF,Equity,Mutual funds and many more. Make a plan and see what suits you best. When it comes to investment, personal finance planning in India in really important.
One can also choose a small reoccurring saving by using RD for 6 months or an Year then after maturity the bulk amount can be used for some big investment.
3.Pay Off Your Loans or Debt as Early as Possible and manage personal finance in India
There isn’t a true justice with our financial goals if we are not able to get free from our Loans and Debt.
Paying almost double amount with EMI as compare to Principal amount really hurts. Do some extra payment with your regular monthly payments. There are also many ways to finish off our loan.
Make a plan and see if any small contributions towards your debt clear your loan early. Give it a try, it is worth. I was able to pay my loan early with these small contributions.
If you have multiple EMIs, then best advice i can give you is repay the Loan having highest Interest.
Financial management isn’t get its true meaning with paying unnecessary EMIs. Either few small amounts or one time big amount can be useful to get rid of your EMI. Just think about it.
There are many resources available on internet and also in form of books. There are also many personal finance India blog and personal finance magazine India, read them to have overview of different practical approach towards finance management.
Try to follow some of best recommendations that suits you best and not all. There is learning in each and everything , just like not all 5 fingers are same , everyone’s personal finance is also not having a similar track. Try to follow above mentioned or some more personal finance blogs India for a good finance understanding.
6.Always Spend Based on Your Importance and Manage Personal Finance in India in even Better Ways
You can always go for a higher range of cell phones , Cars, Accessories etc when you already have one in good working condition. But do you think it is really going to do any justice for you?
Spend on the things based on your importance and requirements. There is no limit of throwing your money on great market tricks. Check out yourself what is important for you and your family at present and prioritize your spending according to it.
Make your money as Wise Money when it comes to expenditures.
7.Borrowing Habit is Bad for Your Finance
There is a great Saying “Cut your dress according to your cloth“, meaning Limit your expenses according to your earnings.
Now there has been situations with me in past when i wanted to Buy something out of my budget and for that i was ready to borrow money from others, this was just to fulfill my desire. Not buying things never have affected my work or life anyways.
So what i got ? A debt to be repay from my next month’ Salary.
Better plan for something and buy from budget. If things are at higher cost we can plan it in few months rather that disturbing our current finance.
8.Your Working Partner ( Husband or Wife) can Bring Some Magical Touch to Your Finance
This is my real life experience when my Wife brought great help in managing Personal finance.
After a long break she joined office again and from next month we were having some extra room for finance management in better ways.
She started taking few equal responsibility in managing day to day family needs and budget, weather it is paying bills, pickup children from school, daily expenditures, monthly budget planning etc
If you have not taken any medical insurance for yourself and your family please take one. Bad times in medical terms can loose us plenty of money that can shake us financially from the core.
Buy a good medical insurance that provides good coverage for you and your family.
Likewise Term insurance is also beneficial for your dependents. Choose a good insurance company with good reputation of claim settlement.Personal Finance India is incomplete without all of these.
Insure a good coverage amount such that your dependent will be able to take care of themselves for most of their lifetime. Investigate some of best insurance available in the market and choose what you think is best.
10. Manage Personal Finance in India by Dream Deposit or Goal deposit investment
Now here is a catch. It is basically a Saving we are doing with interest rate similar to Recurring deposit of your bank. But we set a Goal for saving, it can be small of Big amount depend upon a Goal you set.
Many banks are having this Goal based saving like HDFC having Dream deposit, ICICI having i deposit etc..
I had planned for a small vacation and so i started saving small amount for this dream every month. This was totally disciplined kind of saving and maturity was deposited to my main account.
The idea is clear, make some goal based investment, no matter it is small or big. Even if it is small, give it some time and you could see bigger results.
11.Know Your Tax Deduction and Best Way to Save some amount
We all pay income tax and also we try our best to save money from tax deduction. There can be some gap in knowing best ways to save more. Consult with a good CA or CS for better ways to save your taxes.
After-all we should not be a food of our money, we should know how and where deductions are made not for only Taxes but also for our monthly salary.
Check all your deductions and payout depending upon your annual flexible and investment plan.
12.Stick To Your Monthly Budget and Manage Personal Finance in India
Making a monthly budget and Sticking to it is not an easy job, but trust me it is not so difficult also. Once you started for a month, it will continue automatically for next month and you will realize you are making a track record of your monthly expenses.
Keep a record, but make sure keep it is easy and simple. Check for any gap where an extra money was lost which could have been saved. No matter what, try not to take a jump across your monthly budget. Some urgency is excused but make sure to follow in disciplinarian manner.
13. Vacation and Luxury Expenses
Trust me or not, this is also an important factor that contributes to a healthy financial management.
We all love to go out for vacations, but there are some silly financial mistake we do in terms of expenditures.
Have you ever think of, a off-season can be a jackpot in terms of lower rates on every destination? Try it, it is worth.
Likewise, Check expenses on your category of hotel room we book, why not after-all we are spending money only for sleeping for night, be it a executive room,deluxe or super deluxe room with balcony.You can also buy tickets in advance to save yourself killing your extra money from your finance as compare when you book ticket near to your journey.
I know this is some sort of boring exercise but it is important that we should follow it when new item gets an entry to our budget.
It might be possible you have taken a new policy for your child or admission to school. The new expense budget should be exercise well with this.
Add items and adjust well so that new expense fit healthy to our financial management and planning. Making a budget is easy but keeping a good track of it is also very important.
15.Choose Your Friendly Debit or Credit Card
I am not a true lover of Credit cards but i am not even against it. In-fact i see some of better advantages on credit cards as compared to debit cards. Spending is other thing. If you do not have control , then even debit card is not good for you.
Make sure Credit card is your best friend in managing expenditure. Swap only the amounts that you can repay easily without disturbing your finance.
CALL TO ACTION!
Now it is your time, i can keep adding things but if you don’t give it even a thought , it is useless for me. To reach our financial Goals and to get financial freedom, Personal finance planning in India is really important. Above are some best Tips from my experience.
Do let me know in comments if there are other ways by which we can manage personal finance in India in better ways, it will help me to add it here.
Financial Management is taking best controls on your money flow. It is basically your Wise Money. Best managing of your finance in spending,analyzing and controlling money which provides justice to your financial goals is financial management. Know some best of financial management tips here.
What is Personal Finance management ?
It is a form of financial management in which a person or family takes financial decision on budget,saving,expenses and future investment. You can get more explained meaning in this article.
How can i manage personal finance or do personal finance planning ?
Manage personal finance is not all about investment but it involves all three factors Earning, Saving and Investment. You have to look every aspect. There are many things that we need to consider while doing a personal finance planning. This article explains all steps for better management.