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The Best Financial Habits To Win In This Navratri Season

06 Oct 2022 0 COMMENT

Introduction

The Navratri festival honours the victory of good over evil and celebrates Goddess Durga’s victory over the demon Mahisasura. That could also be when you can beat the Mahisasuras in your financial lives and usher in a fresh beginning.

Demons to slay this Navratri:

Living Paycheck to Paycheck

Spend less on items because they only provide fleeting pleasure. Instead, save money from your paycheck to build up a monthly surplus.

Insufficient Tax Planning

Most people start investing in tax-saving programmes when the accountants remind the employees to provide investment evidence at the end of the fiscal year. You invest in a hurry and make mistakes. Invest in tax funds early to enjoy benefits and income tax advantages and prevent last-minute stress.

Combining Insurance with Investment

Many people make the error of merging their investing and insurance portfolios. Investors should have a separate investment plan for wealth creation. Your insurance is your protection, and a term plan is only meant to protect your finances against any eventuality.

Good Financial Habits to Adopt

Cut Spending

One of the main reasons you may seem to be losing more money than necessary is that you may have unnecessary expenses. Thanks to online shopping, we now have the convenience of buying whenever we want. However, this also causes us to make unwise financial choices that significantly affect our bank accounts.

Budgeting

If you don’t establish a monthly budget, you will run out of money before you realise it. Your spending will constantly exceed your income if your expenses consistently outweigh your revenue.

Maintain A Modest Lifestyle

The best financial habit you can go for is living within your means. If you adhere to your financial goals, your savings will increase quickly. You can prevent bad spending habits by learning to differentiate between your needs and wants.

Importance of Investing Well

Investing is a great way to engage your money to work and build wealth. If you make smart investing choices, your money may increase in value and outpace inflation.

Bad Investing Habits to Drop

Using Your Card Excessively

You can purchase something you cannot afford with only one swipe. These impulsive purchases may put you in debt-related difficulties. This one-time expensive purchase that would make you happy now could become a long-term financial burden. Utilise your debit card inside your budgetary constraints. Keep only enough credit on your card to cover emergencies.

Letting money Sit idle in Savings Accounts

You can invest your savings based on your long-term and short-term financial goals. Investing regularly protects you against inflation. Idle cash in a savings bank account hardly generates any returns. Letting money sit in your accounts is equivalent to losing it.

Failing To Prepare is preparing to fail

Never spend your entire salary; keep some emergency savings aside for emergencies. The pandemic has shown us the perils of not having adequate savings. Many have found out the hard way. Keep an adequate emergency fund. Take professional help to get sufficient health insurance. That would protect your savings in case of an emergency.

Good Investing Habits to Adopt

Diversifying Investment

You must adequately diversify your portfolio. Your investments must align with your financial goals. For long-term goals, you must allocate more to equity assets. For short-term goals, you must focus on fixed-income assets that protect your capital. Take professional help to create a portfolio that suits your profile.

Regular Investing

It’s a great idea to get into the habit of saving and investing. Set up a pre-authorised contribution to automatically transfer a predetermined amount of money from your account to your savings. You’ll quickly alter your way of life to accommodate that essential financial commitment, saving yourself the stress of rushing to come up with a single lump-sum payment just before the deadline.

Keep Your Emotions In Check

We are emotional beings, but it doesn’t make us great investors. The typical fluctuations of the markets can incite fear and greed, which leads people to act contrary to the fundamental success formula—buy low, sell high. Market declines historically have proven to be great times to purchase.

Takeaway

What are you waiting for? Overcome these bad habits to clear the way for a bright financial future now that you know the obstacles in your way.

DisclaimerICICI Securities Ltd. (I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Venture House, Appasaheb Marathe Marg, Prabhadevi, Mumbai - 400 025, India, Tel No : 022 - 6807 7100. The contents herein above shall not be considered as an invitation or persuasion to trade or invest.  I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. The contents herein above are solely for informational purpose and may not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments or any other product. Investments in securities market are subject to market risks, read all the related documents carefully before investing. The contents herein mentioned are solely for informational and educational purpose.