The country is still to find steady ground after the kneejerk reactions that followed the 8 November demonetisation. While the number of people standing in queue outside the ATMs has reduced, liquidity is yet to return to the market. People, paranoid about how things will pan out in the near future, are stacking up money in their homes. That’s one of the most unwise things to do; letting your money gather moss.
1. Square off your debts
Debt is the biggest culprit to impede your financial goals. Pay off all your bills on time. Clear all outstanding debts. Credit card debts command unusually high rates of interest that is compound every month. Try paying of your creditors in cash and save money on interests.
2. Save before you invest
Money saved is money earned. It’s an old adage. Before you start investing, get into the habit of saving. Determine the modes of saving. Save money every month by cutting down unwanted expenses. Open a separate savings bank account and leave it untouched. Use the new account as a piggy bank.
3. Straighten your records
Most of our financial recordkeeping is in shambles. We don’t track the investments made over the years. Rarely do we keep the statements in one place. We are often unaware of where we are in the investment cycle, leave alone know whether the ones that are there, can take care of us in the future. In most cases, bank accounts and insurance papers don’t have nominees. In the event of an emergency, it’s often difficult to get the benefits. Other important details like address for communication and phone numbers may not be updated. Fill in these gaps and bring the statements to order to take stock of your finances.