Financial Habits You Need To Rethink Right Now! 🚀💡
Helluuuu
How have you all been? I hope most of you are done with your ITR filing and that things are looking up. We’re half past this year and I thought it’d be a great time to play your nosy neighbour and pass comments… on your financial habits, hehe!
What I was up to: All of us at Fincocktail have been having a few incredibly productive weeks. I have been meeting a lot of my creator friends, filming podcasts with them, and of course, talking business (read: fun collaborations!) I recorded a podcast with Dr Sid Warrior, and another with Harsh Kedia
Market ka haal: Post a five-week upward rally, the domestic equity markets continued the streak with benchmark indices Sensex and Nifty ending at fresh record highs on Tuesday led by buying across sectors.
The IT sector particularly looked promising, and the continuous positive FII inflow contributed to the positive sentiment leading to profit booking at higher levels and a subsequent crash on Wednesday, July 10th, 2024.👀
Humara Gyaan: I get it! Managing money seems like it’s too much when you’re trying to juggle careers, family, and social lives alongside the not-so-simple act of mere existence and managing emotions. So this NO BS section is meant to cut through the noise to see which financial habits are truly worth your time and which ones simply aren’t.
🤩 Underrated: Saving a Fixed Percentage of Income
Setting aside a fixed percentage of your income every month might seem a bit old-school, but it’s a habit that works. Consistent savings can help you build a solid financial cushion over time, making it easier to handle unexpected expenses and invest in opportunities when they arise. It's straightforward, it’s disciplined, and it works, regardless of how much you earn.
🙄 Overrated: Avoiding Credit Cards
Credit cards often get a bad rap, but they’re so not inherently evil. The problem lies in misuse and NOT the concept. When used optimally, credit cards can offer cashback, rewards, increased purchasing power, act like an emergency fund in disguise, and can be an easy way to track expenses. Responsible usage helps build a good credit score, which can be crucial for future financial needs. So, don't fear the plastic—just use it smartly.
🤩 Underrated: Investing in Real Estate
Despite what new-age financial gurus might say about renting, investing in real estate remains a solid long-term strategy. Property values could appreciate over time, and owning a home can provide stability and a sense of security. Additionally, rental income can be a great way to generate passive income. It’s not the quickest way to make money, but it’s surely a reliable one.
🙄Overrated: Avoiding Loans Altogether
While it's important to avoid bad debt, like high-interest credit card balances, not all loans are bad. Education loans, home loans, and even business loans can be investments in your future. The only thing avoiding loans does is stunting your wealth-building process. Ensure your loans are affordable, be diligent with payments, and manage them wisely and you’re golden.
🤩Underrated: Not Micromanaging Your Investments
One underrated habit is not constantly micromanaging your investments, it does more harm than good. It's easy to get caught up in daily market fluctuations, but checking your investments once or twice a year is often sufficient. You can then easily avoid unnecessary tax implications, exit load burdens, and potential losses from short-term, emotional decisions.
🙄 Overrated: Avoiding Luxury Purchases
Avoiding luxury purchases entirely is another piece of advice that sounds good on paper but isn't always practical or necessary. After all, what are you working so hard for, if not to reap a portion of that benefit in real-time? It's okay to indulge in something nice once in a while if your finances are in order. Your splurges can be planned and affordable, too!
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Managing money CANNOT be a one size fits all. Your financial habits should reflect your values and priorities, more than any proven forumla for becoming rich. Focus on building habits that support your dreams in the future while providing peace of mind and happiness at present.
To better financial choices🍻
Sayali❤️
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