STEPS TO IMPROVE YOUR FINANCES
1. Save 1% more of income
· Just ask your
employer to put an additional 1% of your income in the Voluntary Provident Fund.
· Its execution is
fairly easy and the small deduction won't even pinch.
2. Find a better bank
· How good are the
mobile services offered by your bank?
· If there are too
many glitches and not enough facilities, it may be time to change your bank.
· Comparing the
services and mobile apps won't take time, but opening a new account can be a
bit tedious.
3. Consolidate your
portfolio
· Your asset allocation may have changed, but you won't know it till you have a consolidated view
of all your investments.
· If you haven't
already done so, this is the right time to sign up with a portfolio tracker.
· It's tedious to
dig up all the details of your investments, but the effort will be worthwhile.
· The execution is
not easy for investors who invest randomly and don't have all the documents at
one place.
· It's more
important for such people to do this now.
4. Open a sweep-in account
· While you are
searching for a new bank, keep an eye out for sweep-in accounts, which offer a
higher interest on your savings bank account if it exceeds a certain limit.
· Even if the money
lies in the account for a few days before your EMIs and bills are paid, it's
worth opting for it.
· If you plan to
open a new bank account, it won't add to the effort, but a one-time diligence
can bring long-term benefits.
5. Review your phone &
TV plans
· Your
communication bill accounts for a small, but important, part of household
expenses.
· Study your usage
pattern and switch to a plan that is best suited to that need.
· You should also
take a closer look at the DTH plan for your TV.
· Knock off
channels that you rarely watch and see your savings rise.
· Comparing plans
and zeroing in on the best is not difficult if you are clear about what you
need.
· All you have to
do is make a phone call.
6. Pay an extra home loan
EMI
· Why wait till you
have saved a big amount to prepay your home loan?
· Do it as soon as
you have saved even one month's EMI.
· A single extra
instalment every year will reduce the loan by several months.
· In a long-term
loan, the difference can be in years.
· It's difficult to
save one EMI every year if it is a big loan, but you will find it easier to do it as your
income goes up over the years.
7. Rework the household
budget
· Review your household
budget, retaining essential items, paring discretionary spending, and cutting
down on wasteful expenses.
· You will be
surprised how easy it is to save a few thousand rupees very month by altering
your lifestyle a bit.
· It may be a tad
difficult in the beginning since you will need to watch every rupee.
· However, you will
get into the habit in 2-3 months.