Top 3 Tips to Help You Gain Control of Your Finances

When it comes to our personal finances, one of the most important habits that we need to learn is to stay out of debt. Unfortunately, personal finance, budgeting, or taxes isn’t something that’s taught in schools. This lack of emphasis on money management leads to a lot of salaried professionals being clueless about managing their money. Both you and I know that saving money is hard. But that isn't an excuse for you to go broke every month or get into debt. There are simple tips that, if followed well, can help you manage your monthly salary. There's no need for you to look up online loan apps when you're broke. The goal is to manage your finances so well, that you don't need a loan in the first place. We've got 3 tips for you that'll help you do exactly that. Read on:

1. Draw Up a Customised Budget

If you want to be able to save a set amount from your salary every month, you first need to be able to make sense of your finances. For this, the first step is understanding where you’re spending your money and by how much. This will help give you a clear picture of how much you can realistically save. If you’re not happy with the amount that’s left for savings, try reducing how much you spend on monthly fixed items (like rent, utility bills, subscriptions, etc.). Remember, there’s no one-size-fits-all budget that applies to everyone. You need to customise your budget based on your salary and financial goals. Otherwise, you may have to depend on online loan services to bail you out in case of an emergency.

2. Save Up for Rainy Days

This is something that our parents have been doing for decades. In their day, they completely avoided taking out loans. Their mantra was “pay yourself” instead of “treat yourself” that’s all the rage right now. While it’s not a crime to indulge yourself, it shouldn’t become a habit. What should become a habit is putting away a fixed portion of your salary (20% is good to start with) no matter how “small” you think it is. This is how you set up an emergency fund. You put away a portion of your salary and forget about it. Once this becomes a habit, you’ll have a significant amount saved up. You can then use it to take care of unforeseen expenses without compromising on your monthly expenses.

3. Make Small yet Significant Changes

One of the most common misconceptions associated with saving money is that you’ll have to live a very ‘frugal’ life. This is only partially true, and it also depends on how you approach this entire exercise. Many of the things you ‘love’ can also be completely wasteful and unnecessary. It could be a magazine subscription, your daily coffee from Starbucks, expensive takeout for your daily lunch, or even a credit card you don’t need. At first, such things might seem completely harmless, but if you look a little bit closer, you’ll see that you can do without some of them. It does require self-control but eliminating such expenses will go a long way in helping you save precious money.

Wrap Up

The above points will help everyone who wants to take control of their finances. However, despite your best efforts, there will be times where you may require extra funds to meet a financial emergency. In such a situation, KreditBee is a good online loan app you can consider. KreditBee offers personal loans up to Rs. 3 Lakhs, with no physical documentation required. All you need to do is download the KreditBee app, complete your profile, and leave the rest to us. If you wish to learn more about our personal loans, write to us at [email protected] or simply call +080 44 292 200.