• Renu Rawat


Money doesn’t come easy, and what is more difficult is to manage it. Most of us have financial issues daily, whether it's a past-due bill or mountain of student loan.

Money is not everything, but money is something very important. Money helps us achieve our goals, basic needs, and supports. It helps us get some of life's intangibles - freedom or independence, the opportunity to make the most of our skills and talents, the ability to choose our own course in life, financial security. And on the other side, savings are looking pretty dismal.

At the end of last year, the personal savings interest rate in India, its lowest level in more than a decade that is 3.50% to 3.25%, but to make the most of your income and savings it's important to become Financially Literate.

There are plenty of methods to help you reach your money goals. Perhaps you don't even know where to start. Don't worry, we have you covered.

Here are the best practices and tips for personal finance, according to experts:

1. Track Your Spending

First things first. If you want to save more money and spend less of it, you have to know where that money is going in the first place.

Online budgeting tools like Mint, EveryDollar, or Money Manager make it easy to track your spending.

Having a visual snapshot of your money spendings can help in better planning. The snapshot is the answer to questions like:

  • Can I afford it? or

  • Is this purchase going to bring me closer to or push me further from my goals?

The 50/30/20 budgeting method offers a great framework.

According to this thumb rule:

  • 50 percent of the earnings after tax should be used towards necessities such as rent, utilities, groceries, and transport.

  • 30 percent of the money should be spent on luxuries, clothes, or wants/desires.

  • 20 percent of the money should be saved and invested towards your financial goals such as paying down debt and saving both for retirement and for emergencies

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