9 Financial Habits to Get Back on Track After the Covid-19 Setback
Are you facing a disturbance in your financial planning because of Covid-19? You are not alone! According to a Home Credit India survey, around 46% of households were facing budget problems during the lockdown. They borrowed money to run their regular expenses.
The market is normalizing now. People are getting their total salaries without deduction. And new job vacancies are coming your way. It’s time for a fresh start on the journey of achieving your financial goals.
Following are 9 positive financial habits to help you get back on track :
Set Measurable Goals
It is vital to set financial goals. But it is more important to make them measurable and to establish a timeline. Avoid vague targets like paying off debts or saving any amount by the year-end. Keep targets like saving a percentage of income every month. You can set a target by writing down daily expenses and cutting down a specific cost, which is not mandatory.
Get a Budget in Place
Make a comprehensive monthly budget. Jot down every expense head while allocating the average money needed for it. Create separate headings for essential expenses like groceries, electricity, etc. And make a separate section for the lifestyle expenses like shopping and eating out. In this way, you will always be aware of your limits while spending. This record of income and costs will help you to allocate for your Saving Plans.
Review Budget Every Fortnight
Review your budget every fortnight. Check if the money allotted to each expense is still relevant. Going through the receipts of the past 15 days will clarify any areas where you can cut down expenses.
- Diversify Your Savings
Don’t put all your eggs in one basket. Diversify your savings in FD, RD, chit fund, and gold etc. Chit fund is getting popular amongst the new generation. It is because they offer a lot of flexibility with a reasonable rate of interest. There are many online chit fund companies such as The Money Club: Online Chit Fund Platform that provide digital transactions. These transactions are safe and convenient.
Do Essential Expenditure First
It will be a wise move to pay off your mandatory bills at the start of the month. Afterwards, you can spend on your shopping, saving and debts with the remaining amount.
Prepare Emergency Fund
Living hand to mouth is a dangerous habit. You should always keep money in your account for emergencies. This amount is apart from your necessary expenses, lifestyle expenses, and savings. According to experts, you should keep aside an amount equivalent to your 3-6 months’ cost of living as an Emergency Fund. But you can start small as well. You will gradually get there.
Save as Soon as You Get Salary
Plan your saving along with your necessary expenses. Either transfer the money you want to save in a separate account the moment you get your salary. Or you can use the ECS facility of banks to automatically transfer your money from your salary account to your saving/RD/FD account.
Pay Full Credit Card Debt
Try to pay the entire due amount of your credit card every month. Keeping pending payments will lower your credit score. A low credit score will hamper your chances of getting loans and credits in the future. Additionally, the accumulating interest rate will burn a hole in your pocket.
Cook Your Meal
Are you guilty of take-out food every other day or every day? While ordering food, one time might not seem to be expensive. But if you add up your monthly food receipts on outside food, you will be shocked! Take out some time to prepare your meal yourself rather than ordering from outside.
You might stumble, make mistakes or give in to temptation once in a while. But you should not give up on your financial goal. Move on from every financial mistake and go ahead again on your path of financial security and wealth.
Aatish Khanna works with the Content Marketing team at Money Club, a digital chit fund platform that makes saving, borrowing, and investing your money more efficiently. He writes on topics to help his readers understand processes so they can make better financial decisions. He’s the go-to person that his family, friends, and colleagues turn to for all their money matters. He loves to play board games and aspires to one day build his one finance-related board game and app.