Hello Readers!

Financial Responsibility is something that is much big than what an individual understands. Being financially responsible for your parents mean taking care of themselves, their medicines, and their needs. Being financially responsible for your kids, means you need to take care of their education, their basic livelihood, and the promises that you done to them.

Financial responsible for yourself and your dependents, means have to fend for both, yourself and your dear ones. And in order to make yourself all-time ready for these financial responsibilities, you need proper financial planning. You don’t have only to plan your today but also for the future, at the same time ensuring you don’t make any financial commitments that you can’t keep.

Well, here I am with some amazing tricks, better say tips that can help you financially responsible for your dependents and your loved ones.

Budget Helps You Save And Restricts From Wastage Of Money

Preparing a budget for your expenses is the first direct step toward managing your finances perfectly and the first indirect step towards saving a good amount every month. When you have a budget planned, you have all the data about where and how much you have spent your money and how much you have saved, a budget helps you stay on course.

So, if you still don’t have a budget, get all set to plan it. Pull up your bank and credit card statements for a year and enlist all expenses into various categories – housing, utilities, food, transportation, medical expense and insurance, savings, recreation, and personal spending.

Live Within Your Means

Budgeting your finance not only helps you regulate your expenses in order but also restrict you from spending more than your salary. People to get their desire things, tend to take debt on credits, but when they are on with their budget plan, this credit is easily visible to them.

Basically, what you need to do is, have a look at spends in each of the above-mentioned categories and trim your budget by cutting the ‘excesses’. While the necessities cannot be done away with, the discretionary spending should be tempered to balance the budget.

Saving Enough Is Crucial

Ideally, every individual must try their best to save at least 20-30% of their take-home salary. They can use their savings in a good manner like they can start investing a good part of their savings in mutual funds as per their goals and objectives. They can retain a small part of saving along with them or can invest in liquid funds, to complete their sudden money requirements.

Also, work towards channelizing your savings towards various investments in an automated way.

Try Your Best To Stay Away From Debt 

Buying things on credit has become so easy with the introduction of EMI installments, but people often miss out to notice that when they buy things on credit, they pay more than the product’s MRP. For instance, a car with a price tag of Rs 5 lakh effectively becomes Rs 6 lakh for you, if you are taking a car loan for five years. So be attentive while buying things on credit.

If you are planning to buy something that is a car, or a bike, try your best to invest in debt funds for the short term and create a corpus to buy that car or bike, instead of buying them on a loan or credit. Use your credit card responsibly and always pay your full bills on time to keep up the credit score.

For any kind of query, you can contact us at Shri Ashutosh Securities Pvt Ltd., we are here to help you in any way possible.

Happy Investing!

(Mutual Fund investments are subject to market risk Illustrations are for example only, there is no guarantee of returns. Past performance is not an indicator/guarantee of future returns).