Have a Spending account:
Most of us have a Salary Account where usually the Income gets credited. It pays to have an Expenses Account separately. Every month you (&your spouse) would put a specified amount into this account. You would want to use this account for all your spending so that you have a record for your spending at the end of every month without additional effort
Set up Standing Instruction :
Be it Investment or Debt repayment set up a Standing Instruction for money transfer. The more automated your financial system the more you are bound to be systematic. You can always cancel the Standing Instruction if you want to stop
Do not Default:
Be prompt in payment of loans & credit card payments. Any default on loan/credit card payment is bound to have a severe repercussion on your credit rating being tracked by the credit agency (CIBIL in India). This will in turn reduce your If you have a major issue in payment, approach the banker who can provide some relief albeit in the short-term.
Use Every Rupee:
Be it the hike in your income or Monetary Gift, Use it Wisely. For ex., Plan a portion of the income hike that you towards debt repayment which would hasten the process of Loan closure, however little it may be.
Open a kids account:
If you have a kid, have a separate account that is linked to your main savings account. You need to put in all the money that you received as monetary gift into this pool. Also, you need to think ahead for your kids education and start saving regularly for that.
Comments