5 Best Tips To Become Financially Smart On Payday
One of the happiest days of the month is payday. The day you finally get to buy your favorite set of headphones, gifts for your parents, and a lavish lunch in a plush restaurant. As great as it would feel to finally have a sense of financial freedom and make your favorite purchases, you may also feel that you are running out of money towards the end of the month. So, it is better to thoroughly plan your finances right from the beginning of your financial journey and work towards the lifestyle you desire.
So here, we give you 5 smart money management tips on your pay day to never feel broke again.
Set a budget
One of the most basic, yet crucial things to do to become financially disciplined is to set up a budget, and stick to it. Use a Google Sheets budget template, or any budgeting app to track down your income streams and your total expenses. Make a list of your fixed expenses, such as your rent, utility bills, EMIs, etc., and schedule them beforehand so that you’re always consistent and never miss out on your obligatory expenses first.
Invest before you spend
Just as you receive your paycheck, inculcate the habit of setting aside a fraction of it (using the 50:30:20 rule) for investments. The earlier you begin building your investment portfolio, the bigger returns you’re going to receive in the future. One of the best investments to make early on is life insurance. You can consider investing in our HDFC Life Sanchay Plus to safeguard yours and your family’s dreams.
Don’t make impulse purchases
It is easy to take advantage of the month-end sales offered by numerous e-commerce sites and buy things you didn't need. By making alluring offers, these websites try to trick you but you should resist the temptation. It is advisable to refrain from any impulsive purchasing activities that could jeopardise your finances in the future.
Verify your salary slip
You receive a salary slip from your company as official documentation of your pay. It's crucial to verify your payslips because you will need to present them as proof of income when applying for a loan or buying an insurance plan. This is because your salary determines the amount sanctioned for the same. There are multiple websites and videos over the internet which can guide you about this. Alternatively, you can check with your CA about the same.
Build an emergency fund
Your payday isn’t all about investing and saving for your desired lifestyle. Additionally, you must prepare for the unexpected by consistently maintaining an emergency fund. You can choose from a variety of options, including fixed income instruments to build an emergency fund depending on your lifestyle and risk appetite.
The best way to take control of your life is to manage your money well. There is no better day to do it than on your payday.
DISCLAIMER
This material has been prepared for information purposes only, should not be relied on for accounting advice. You are requested to seek advice from Chartered Accountant or personal advisor.
HDFC Life Sanchay Plus (UIN:101N134V16) is a non-participating, non-linked savings insurance plan. Life Insurance Coverage is available in this product. For more details on risk factors, associated terms and conditions and exclusions, please read sales brochure carefully before concluding a sale.
Related Articles
- Tax Saving Investment Options for Tax-Free Income in 2021
- Top Short Term Investment Options For 2022
ARN: ED/12/22/31002
Term Plan Articles
Investment Articles
Savings Articles
Life Insurance Articles
Tax Articles
Retirement Articles
ULIP Articles
Subscribe to get the latest articles directly in your inbox
Health Plans Articles
Child Plans Articles
Popular Calculators
Here's all you should know about life insurance.
We help you to make informed insurance decisions for a lifetime.
HDFC Life
Reviewed by Life Insurance Experts
HDFC LIFE IS A TRUSTED LIFE INSURANCE PARTNER
We at HDFC Life are committed to offer innovative products and services that enable individuals live a ‘Life of Pride’. For over two decades we have been providing life insurance plans - protection, pension, savings, investment, annuity and health.
Popular Searches
- Term Insurance Calculator
- Investment Plans
- Investment Calculator
- Investment for Beginners
- Best Short Term Investments
- Best Long Term Investments
- 5 year Investment Plan
- savings plan
- ulip plan
- retirement plans
- health plans
- child insurance plans
- group insurance plans
- income tax calculator
- bmi calculator
- compound interest calculator
- income tax slab
- Income Tax Return
- what is term insurance
- Ulip vs SIP
- tax planning for salaried employees
- HRA Calculator
- Annuity From NPS
- Retirement Calculator
- Pension Calculator
- nps vs ppf
- short term investment plans
- safest investment options
- one time investment plans
- types of investments
- best investment options
- best investment options in India
- Term Insurance for Housewife
- Money Back Policy
- 1 Crore Term Insurance
- life Insurance policy
- NPS Calculator
- Savings Calculator
- life Insurance
- Gratuity Calculator
- Zero Cost Term Insurance
- critical illness insurance
- itc claim
- deductions under 80C
- section 80d
- Whole Life Insurance
- benefits of term insurance
- types of life insurance
- types of term insurance
- Benefits of Life Insurance
- Endowment Policy
- Term Insurance for NRI
- Term Insurance for Women
- Term Insurance for Self Employed
- Benefits of Health Insurance
- Health Insurance for Senior Citizens
- Health Insurance for NRI
- Best Term Insurance Plan for 1 Crore
- personal accident insurance
- Annuity Calculator