7 Good Financial Habits For Your Future

Good financial habits, especially if developed early on in life, can offer considerable rewards in the future. Let’s delve into 7 good financial habits you can build from today:

Track your income

Take stock of all your income streams - salary, earnings from freelance work, rent from property leased out by you and returns from existing investments. Getting a sense of your earnings will better equip you to stay on track financially.

Track your expenses

The next step is to list all your expenses. Expenses which are recurring in nature (groceries, lifestyle, subscriptions) can be estimated by looking at your spending history. Assess your lifestyle expenses and make a provision for emergencies too. This will help monitor your spending.

Budget

Making a budget is key to building good financial discipline. Study your income and divide it into living/essential expenses, discretionary expenses and savings. You can start by saving a small percentage of your income after analysing your recurring income and expenses, and work your way up from there.

Insurance

Every expense cannot be accounted for; but you can buy insurance to protect yourself from unexpected expenses and emergencies. Select a plan that will provide the coverage required for your lifestyle. Getting life insurance and health insurance early on in life is a smart move — the earlier you get insured, the lower your premiums will be.

Know your financial goals

Do you want to study abroad or get married in a few years? When do you want to buy a house… and a car? Set such goals for yourself along with relevant timelines.

Research and invest

Read, watch videos, talk to people who are already investing and speak to a financial advisor. A financial advisor can guide you in selecting investment instruments which allow you to achieve your goals. You can start small and invest directly in mutual funds or start a SIP, in which a pre-decided amount gets invested in a fund of your choice every month.

Review regularly

Review your investments and financial goals regularly to ensure they remain aligned – because they can evolve, grow or you might want to add new goals to your list!

Just as the strength of a building comes from its foundation, good financial habits in your younger years will help you achieve financial strength and stability in the long term!

Share:

PGIM India Asset Management Private Limited

(CIN - U74900MH2008FTC187029)

Toll Free Number: 1800 266 7446

Email: care@pgimindia.co.in

This is an Investor Education and Awareness Initiative by PGIM India Mutual Fund.
All the Mutual Fund investors have to go through a one-time KYC (Know Your Customers) process. Investor should deal only with the Registered Mutual Funds (RMF). For more info on KYC, RMF and procedure to lodge/redress any complaints, visit https://www.pgimindiamf.com/ieid.
MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY. Read more

The information contained herein is provided by PGIM India Asset Management Private Limited (the AMC) on the basis of publicly available information, internally developed data and other third-party sources believed to be reliable. However, the AMC cannot guarantee the accuracy of such information, assure its completeness, or warrant such information will not be changed. The information contained herein is current as of the date of issuance* (or such earlier date as referenced herein) and is subject to change without notice. The AMC has no obligation to update any or all of such information; nor does the AMC make any express or implied warranties or representations as to its completeness or accuracy. There can be no assurance that any forecast made herein will be actually realized. These materials do not take into account individual investor's objectives, needs or circumstances or the suitability of any securities, financial instruments or investment strategies described herein for particular investor. Hence, each investor is advised to consult his or her own professional investment / tax advisor / consultant for advice in this regard. The information contained herein is provided on the basis of and subject to the explanations, caveats and warnings set out elsewhere herein. The views of the Fund Manager should not be construed as an advice and investors must make their own investment decisions regarding investment/ disinvestment in securities market and/or suitability of the fund based on their specific investment objectives and financial positions and using such independent advisors as they believe necessary.

Service Providers

Terms & Conditions

Risk Factors