Hacks to Improve Your Money Habits
The number of taxpayers in India has risen sharply, from less than 5 crores in 2012-2013 to more than 8 crores in 2018-2019, according to figures released by the Income Tax Department. The country’s per capita income also rose by 10% in a year’s time. With the rise in disposable income, it’s essential to develop good money habits. This step holds particular significance against the backdrop of slowing economic growth.
Here are some ways in which you can hone your money management skills.
How to Develop Better Money Habits
Having control over finances may seem overwhelming. With these hacks, however, it can become a lot easier:
Use mobile apps to track your spending: There are several free expense-tracker apps with various functionalities. You can track your spendings by category (like groceries, travel, household, entertainment, etc.), timeframe and location. Some apps use artificial intelligence to give you insights into your spending habits. Some expense trackers allow you to split bills. You can use a tracker when going out with friends and also add daily payments to split with your flatmates. Some apps that collate information from SMS notifications sent when you use your credit or debit cards.
Be on the lookout for offers: Every month, there are some expenses that need to be taken care of. Plus, you don’t want to deprive yourself of some retail therapy! It’s a great idea to look for coupons, deals and discounts before spending. For instance, debit cards have online and offline discounts or cashbacks on movie tickets, electronics, food & beverages and even fuel surcharges. When buying consumer durables, look for EMI options offered by your debit card online.
Make wise banking decisions: Choose a savings account that offers you a good interest rate. Find out whether there are any debit card fees. Check out options that allow you unlimited ATM withdrawals without any debit card charges. Set aside some money every month that can be invested to earn higher returns. This allocation can be done through a recurring fixed deposit or a mutual fund SIP (systematic investment plan) to invest a fixed sum regularly.
Review your bills: Whether you’re in a fancy restaurant, a supermarket or a petrol pump, always remember to review your bills. Reviewing will help you identify any errors and have them stuck off.
Reviewing your statements: Reviewing your debit card online statements will give you an idea of where you have spent your money. Make a note of unnecessary expenses and check yourself the next time you feel tempted to be extravagant.
Follow the 3 Rs: Following the Reduce, Reuse and Recycle policy at home can help you save a lot of money. The policy lowers your carbon footprint and benefits the environment.
Many habits that have dual benefits – of benefiting your financials and your health. For instance, walking instead of driving or cooking at home instead of ordering food can make you healthier, both physically and financially. So, make it your new year’s resolution to improve your money habits and being completely worry-free about your financials.