1. Don’t spend more than you earn
It is pretty strange to know that some people don’t invest in their savings account at all. They withdraw their entire paycheck, and spend it in a month. Then they wait for the next paycheck, and do a similar thing. This will put you in crisis when emergency strikes. Our first investment advice is to avoid this habit.
2. Keep emergency money
You should always have a fund where you keep emergency money. Deposit just a little money there every month. Even 5-10% of your income will do. It will help you out when you are in real need of money. And don’t touch that fund ever except for emergency!
3. Throw away the credit cards
Credit card allows you to spend as much money as you want, and you need to repay the money when the bill comes. This is not your money that you’re spending; it is the bank’s money. You might tend to go overboard thinking that you will be able to repay it. Don’t take such risks because if you’re unable to repay, you’ll be stuck in debt and interests.
4. Don’t take loans
You should keep aside a part of your money and invest it. In fact, you should have multiple investments so that you always have enough money at your disposal. This will help you in avoiding loans, be it at the time of buying a car, or funding your children’s higher education. Some people spend their entire lives repaying loans.
5. Start saving from your first job
If you start saving right from your first job, you’ll be in an advantageous position. Firstly, you will inculcate the habit of saving. Secondly, your money will grow a tremendous lot over the years if you start saving early. Thirdly, you won’t need to worry about retirement!
6. Avoid giving into preset norms
So it is said that you should change your vehicle after every 5-6 years? But what is yours is running well even after 7 years? Don’t give into societal pressures or preset norms. Do what’s best because no one apart from you knows what is best for you.
7. Diversify investments You should look at diversifying investments. Different investments play different roles and come to different use. A cheap term life insurance might benefit your family in case the earning member passes away, whereas a health insurance might help you out for covering the medical expenses of an operation.