The auspicious occasion of Ganesh Chaturthi brings along an opportunity to celebrate life and reflect on our actions. This year, take inspiration from the Vighnaharta (remover of all obstacles), and work on ways to get rid of all your financial challenges. Here's how you can identify the problem areas and address them for a healthy financial life.
Common financial obstacles and ways to overcome them
Piling debt:
These days, the cost of daily life has risen to new highs. In such cases, you might rack up a fair amount of debt. Clearing off debt is a hassle and can feel like a heavy burden at times. You may even have to keep track of various instalment amounts and payment deadlines. To help streamline your debt, you can opt for debt consolidation. With Personal Loan for debt consolidation, you can clear off debt more efficiently. You only have to keep track of and repay one loan.Excessive spending:
It is easy to get carried away and spend more than you should. However, when this kind of behaviour becomes a habit, it is better to find a way to curb such impulses. One such resource you can rely on is budgeting. Evaluate your income and expenses to create a budget suitable for you. It will help you manage your money and avoid unnecessary expenditure. You can also track your spending to determine where you spend the most and what expenses can be cut down. If you have a habit of spending your money just after your salary gets credited, you can start a Recurring Deposit and schedule the installment date to overlap with your salary. This way, you will not just reduce your spending but also boost your savings.Lack of investments:
Ideally, it would be best if you were allocating your income wisely. After deducting expenses, you should save a certain amount and use the rest for wealth creation. However, often, many of us are content with simply saving. While saving is essential, so is wealth creation. To do so, you can try your hand at investing. Today, you can pick and choose from a wide variety of instruments that suit your timelines and risk appetites. Talk to your bank's relationship manager or financial advisors to create an investment plan that will help you use your disposable income fruitfully. As a first step in this direction, you could consider opening a Demat Account.No savings:
Do you find yourself spending all your income and having zero savings? This lifestyle can take a toll on you. You should consciously take steps to create an emergency fund. In times of crisis like job layoffs, medical emergencies, or personal tragedies, you can dip into your savings for a financial buffer. Set aside a portion of your income, and do not touch it unless necessary. You can track your expenses to see where you can save money and how you can allocate your funds to create a nest egg. Try saving a fixed amount every month via a Recurring Deposit, and then convert that into a Fixed Deposit on maturity. This will allow you to save for future needs.No financial discipline:
You need to be consistent with budgeting, investing, saving, and expense tracking. This will help you with better money management. Build a financial plan. This plan should encompass all that you want to do with your finances. It will help you create a budget, allocate funds, have an investment plan, and keep an eye on your spending. All you have to do is consistently stick to the plan.
Now that you have an idea of the obstacles that may be obstructing your financial growth, use the suggestions given to address these problems. Imbue the spirit of the Vighnaharta and get started on a healthier financial journey today.