The Top 5 Financial Tips that You Probably Haven't Read Before
A lack of social security, prevalence of nuclear families, and rising life expectancy in India have made financial planning more important than ever before. However, 51% Indians are not sure they would be able to take care of their healthcare expenses once they are retired, according to the Aegon Retirement Readiness Survey 2018. This indicates many people are still not taking the right steps towards financial stability. If you also belong to this group, here are 5 financial tips that you might not have read before.
1. Home Loan Transfer
In a home loan transfer, the new lender pays the outstanding amount, and you can start paying the EMIs to the new lender. If you get a lower interest rate from another lender, you can switch. In the long term, the lower interest rate can save you a substantial sum. The best banks for home loan transfer are the ones which also allow you to extend the tenure. If you’re thinking about how to transfer home loan, all you need to do is submit an application form, along with some documents to the bank where you want it transferred.
2. Automate Your Savings
Automating your savings ensures you do not have to think about saving. This also ensures that you save more over time. When the savings are transferred as soon as your salary comes to your account, it ensures you can save a fixed amount each month. On the other hand, if you wait till the end of the month, you would only be saving what’s left. Automating savings also saves time. You do not have to think about how much to save, or when to make the transfer. Plus, it removes the chances of you forgetting to save as well.
For automating your savings, set up a different account dedicated solely for this purpose. Avoid using this account’s credit or debit card.
3. Reduce Your Social Media Usage
Time spent on social media sites has a bigger impact on your savings than you might realize. A recent study has revealed that around 57% of people make impulsive and unplanned purchases after spending time on social media. Another study found that 26% millennials feel that their long-term financial goals are affected by social media.
The constant bombardment of ads on social media, along with peer pressure, can make us purchase things we might regret later. That is why curbing the use of social media can improve your financial habits.
4. Limit Eating Out
Indians eat around six times a month on average, according to data provided by the National Restaurant Association of India (NRAI). This number is even higher for millennials and Gen Z. Not only does this affect your health, but your finances as well. Try to eat home-cooked meals as often as possible to achieve your financial goals.
5. Get Health Insurance
You never know when a medical emergency might occur. If it does and you do not have health insurance, your savings can vanish in no time. When looking to buy health insurance, ensure the diseases for which you have a family history of are included in your plan.
Apart from knowing which bank is best for home loan transfer, knowing about the best tax-saving investments can also help your finances.