1. Pay yourself first
Before spending on anything else, set aside at least 20% of your income for savings or investments. Automate this to make it effortless.
2. Follow the 50:30:20 rule
Use this budgeting rule: 50% of your income goes to needs, 30% to wants, and 20% to savings. It helps maintain financial discipline.
3. Build an emergency fund
Life is unpredictable. Keep 6–9 months’ worth of expenses in a liquid fund or savings account for sudden job loss or health emergencies.
4. Avoid bad debt
High-interest loans and unpaid credit cards drain your finances. Always repay in full and avoid debt for lifestyle expenses.
5. Start investing early
The earlier you start, the more your money grows thanks to compounding. Even Rs 500 monthly SIPs can make a big difference over time.
6. Protect with insurance
Health and term life insurance protect your family and wealth. Don’t delay buying cover, it gets costlier with age.
7. Review & rebalance regularly
Check your finances at least once a year. Make sure your investments, savings, and goals are aligned and adjust as your life changes.
