scorecardresearchLuxurious Lifestyle or Financial Stability: Here's how to choose

Luxurious Lifestyle or Financial Stability: Here's how to choose

Updated: 03 Jul 2022, 01:31 PM IST

When properly managed and arranged, your funds can help you live a comfortable life free of worry. However, it’s vital to know how to manage your expenses and revenue. Let’s find out how can you do this

Luxurious Lifestyle or Financial Stability - What to Choose?

Luxurious Lifestyle or Financial Stability - What to Choose?

Have you ever been in a dilemma over whether to buy something or not?

For example, you wish to buy a Macbook. But you don’t because it’ll disturb your monthly budget and savings. This is just one scenario. There are several choices which we make on a daily basis to maintain our financial stability. Such as using public transport instead of simply booking a cab. Eating food made at home instead of simply buying from a McDonald’s.

While these are all intelligent choices and are essential to make sure that your budget isn’t disturbed, there are times when our minds and hearts are overpowered by desires. And it is human to wish for mundane things.

So, the question arises, what to choose? A luxurious lifestyle or financial stability? But, the question which needs to be pondered upon is, why not both?

If certain habits are adopted and discipline is maintained while spending, having both of these are possible. Handling finances can be a challenge, so it's important to develop good money management practices. 

Financial prudence is defined as the ability to plan and invest in areas you can anticipate making a good return. It also means knowing everything about your money and how to make it grow.

Here are some ways which can help:

Create a monthly budget

Create a budget at the beginning of each month and stick to it. Be sure to stick to your budget and refrain from overpaying on unneeded purchases. Every month, set aside at least one-third of your take-home earnings. To avoid overspending, apply self-control and ask yourself if you really need that pricey phone or the latest party attire.

To minimise increased costs in the future, perform periodic maintenance

In the future, what you ignore today will demand your attention. Individuals with a strong sense of financial responsibility never ignore the need for routine maintenance when it arises. Neglect now and it will pile up and hit you more in the future. On-going maintenance should be performed on a regular schedule. The money you'll save in a couple of years will add up to a significant amount.

A long-term plan

Financial planning is a long-term strategy. Whatever your aim, whether it's for a month, a year, or your long-term ambitions. Place specific financial goals in the back of your mind and make a plan for them. You should keep a budget and set aside a certain amount of money to reach your financial goal. Now is the time to start planning for the future. You'll have to work hard to achieve your goals, and you'll have to save and spend money wisely as a result.

Make the most of special holiday offers/seasonal discounts on brands

It's best to wait until the holiday season to make purchases, whether they're small or large. In general, festival deals allow you to acquire at a lower price. Consider Diwali festival specials, which include steep price reductions across the entire product line. To maximise your buy and save on the allotted money, follow these tips. To uncover the finest bargains and offers available for your purchase, scour multiple stores or online shopping platforms. Waiting for a good price is preferable to making a hasty buy.

Avoiding impulse purchases

Never make an impulsive purchase or indulge in a costly habit. Take a look at the products offered by different stores and compare them. In addition, don't expect that shopping in bulk would save you money on your purchases. When shopping at different supermarkets, you may be enticed by their varied incentives that encourage you to buy in bulk. As soon as you see better deals and the same thing at a lower price, you'll regret your impulse purchases.

Keeping up with monthly payments on credit cards and EMIs

It's crucial to make sure you don't miss any monthly credit card payments if you use a credit card for your transactions. To keep a good credit score, it is crucial that you pay your credit card or EMI bills promptly. In order to be financially savvy, you must be aware of the payments you must make in the following month and make them on time.

Make purchasing decisions based on the value

As a consumer, you should base your decision on the value you receive over the course of the product's lifecycle, whether it is a house, a car, or a motorcycle. Prior to making a purchase, choose how much you are willing to spend, and then hunt for solutions that suit your budget. Consider the residual value of a home or vehicle when making a purchase choice. A greater residual value is preferable. Enjoying the asset while earning a healthy return when you decide to sell it is possible.

If you implement these wise methods, they'll help you save money and get closer to your financial goals in the long term! It is possible to save more than you anticipated by starting small. Those that are financially savvy use these routines to stretch their money as far as possible. The right steps can help you live a lavish life while maintaining financial security.

First Published: 03 Jul 2022, 01:31 PM IST