Most things out of your earnings:
Many times we see people giving importance to earning money or investing their hard earned money in a lot of investment policies. Most of the people believe that earning and investing are enough to become wealthy. However, they often miss out on the point that making the most of your money you have is important too.
Read below to help you know how to make the most of the money you earn:
1. Make the most of your plastic money- with the increasing use of plastic money the credit and debit card industry has flourishes. Debit cards when compared to your credit cards are safer, as the former will keep a check on your spending because of the instant debt from your account, but it is different with the credit cards. When your credit card not use wisely it will affect your financial position enormously. When you use your credit card to make a purchase and you receive the bill the following month of your purchase, you only have to pay a small amount of the due but remember you have to pay the huge interest on the difference at a rate of 3% per month. The interest just keeps accumulating. Therefore if you are making a purchase using your credit card then it is better you pay the entire outstanding amount and not the minimum that is mentioned on your monthly credit card bill. You do not have to worry using your credit card if you pay the whole outstanding amount as soon as possible.
2. Try to avoid penalties- always remember a penny saved is a penny earned. However, most of the people ignore this finance fact in everyday life. You will be charged with penalties if you do not pay the bills on time. with the busy life these days, we tend to forget paying bills on time sometimes. Therefore, put a reminder on your mobile to pay bills on time. make use of the auto debit mode from your bank account to billers, so that you do not have to stress out over the payment of your bills, they will be directly debited from your bank account. This way you will avoid the late payment penalties, therefore you will indirectly save money and another benefit is you can get discounts for paying bills on time.
3. Do not let money lay idle in your bank accounts- you only tend to get a 4% interest per annum on your savings account. Your money in the savings bank account will not grow to the amount you want. This amount if invested in fixed deposits will give you double the interest and your money is safe too. if you want liquidity then invest your money in liquid plus mutual funds.
4. Check your expenditure- tracking your expenses will save you a lot of money in the long run as you will get a chance to curb your expenses and be more disciplined with your money spending. Use a financial tool to know your cash flow.