7 personal finance tips for beginners – Know how to save money and spend it wisely


Wealth Guide: “The key is to start saving as early as can.”

If you save money, money will save you – This timeless saying still remains highly relevant even today. It is necessary that you dedicate a substantial portion of your salary towards investments that are likely to fetch significant returns. These long-term savings will prove critical in helping you meet your longstanding goals. Another important aspect besides investing is maintaining a conscious attitude towards saving and practicing the same in everyday life. Remember, every penny that you save today will cover a long way in ensuring a prosperous future.

For anyone who is keen on clocking some sincere savings, there are three major factors that you need to regulate- spending borrowing and investments. This is because at some point of time you will need to come across the need to spend on essential utilities, apply for loans to meet exigencies, and invest accordingly to nourish your objectives in life. Rohit Garg, CEO & Co-founder, SmartCoin, shares his knowledge on some time-honored techniques to ensure that your saving game stays strong.

Early Beginnings

“The key is to start saving as early as can. Even if you only make small beginnings, you would end up with a considerable headstart that will surely help you move ahead in life. The habit of saving religiously will ensure that you receive a plethora of benefits in the future such as a solid reserve of funds that can help you sail through all potential storms. This is one practice that you must inculcate in your daily routine. The best and simplest way is make an early start as that would necessitate a smaller fund allocation as compared to making savings at later stages in life,” Rohit Garg suggested.

Save before you spend

“When it comes to savings, the golden rule states that you must save a good deal before you start spending. This means that you should spend only when you have allocated a sizable portion of your income to the savings bank. If you are doing the opposite, then it is high time you make a change if you wish to stay on dry land,” Garg advised.

Check bank accounts

“Many people possess multiple bank accounts. It is highly important to closely monitor your bank statements to locate any charges levied on whatsoever prospective grounds. It is possible that sometime these happen by error in which case the bank reverses them. You should also keep a close eye on minimum bank balance charges and ensure remedial action,” he opined.

Cover risks

“If you have a family who depends on you for all financial needs, it is prudent to procure sufficient life insurance as well as health coverage for all the dependents. All you need is to pay a little amount as premium to ensure that you can easily mitigate any possible emergencies affecting your loved ones which can arise in the future,” he advised.

Credit card dues

“If you are in a habit of rolling over your credit card dues each month, you are not a decent saver if you find yourself engulfed in a flood of credit card dues at every month end. With the annual interest rate skyrocketing over 40 percent, it can prove to be grueling affair for anyone. Moreover, if you do not make full repayments, you will be debarred from enjoying interest free periods on later purchases. You must ensure that you pay all your remaining dues on time if you do not want to pay late penalties and other charges,” he explained.

Home loan

“If you have previously subscribed to a home loan, ensure that you make regular prepayments and do not postpone them till the end of the tenure. The sooner you pay of the loan, higher the savings in terms of interest. Maintaining a lower tenure also helps if your EMI is cordially paid off even after counting the household expenditure and long term savings,” he said.

Go digital

“The world has already made the digital switch. Therefore, it’s only fair that you follow suit. Leverage digital payment platforms whenever you are shopping. Whether it is your household requirements or utility-related payments or procuring life insurance, digital insurance premium is usually 25 per cent less than offline insurance plans,” he concluded.


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