I need high motivation to start any activity, once this activity develops into a habit, this is what defines us.

In our childhood, many of the habits which our parents taught us have continued till our lifetime.

But unfortunately, financial habits have not developed from a young age if the parents are not financially literate. So don't worry, in this video,we shall discuss more these good habits one should follow and implement right away.

1. Budgeting: Budgeting is an important activity in one’s financial journey. If you are not aware of this, I have made a separate video to discuss the importance of budgeting. I shall link the video here, please do your budgeting and track it.  But if you have created the budget for every month, then stick to it, of course, no budget is perfect and has room for 10-20 % variance.

2. Clear your high-Interest debt:  This includes your Credit Cards and any personal loans. This should also include any loans that you might have taken for appliances such as a fridge, washing machine or even paying EMIs for Phone.

3. Emergency Fund: I cannot emphasize enough the importance of emergency funds. This acts as a cushion during unforeseen circumstances such as job loss or salary-cut. This is essential so that you can maintain the lifestyle and continue with paying monthly bills until you find a job back in 6 months. Once you achieve 6 months of the target, slowly increase it to 12 months of the corpus.

4. Start Investing Early: Warren Buffet started investing at age of 10, and he wanted to start early. But at age of 10, we were thinking of making paper crafts for the school projects. I strongly urge start investment early on with minimal investment of 100. If you have children, open a SIP account in their name and start investing every month, of course, financial education as they mature. This is the best gift you can give them for their lifetime

5. Consistent with SIP: Be consistent with the investment plan. Don't stop your SIP because of a market crash or don't invest if the markets are high. You need to maintain the investment cycle irrespective of stock market news. This will always fluctuate - just hear the summary and continue with your investment strategy.

6. Don't target short time: If you want to see the magic of investment, it has to be seen for the long term. The minimum investment cycle you want to see is at least 10 years. This is where the magic happens - compounding & time. Always remember, In the investment world-  time in the market is important than timing the market.

As promised, here is the bonus tip on Investment. But before that…

Do check out www.bytherupee.com for more articles and podcasts on personal finance. Also, comment below on what topic you would like to know more about. Keep Subscribed to the channel

Let’s dive back to the bonus tip…

7. Insurance: When I say Insurance, many of you jump to conclusion that we need a LIC policy. But hear me out… Many LIC policies are endowment & ulips, but what you really need is Term Insurance so that in case of the untimely demise of the policy holder the nominee will get the insured cover & the family will be secured financially. Along with Term Insurance, one needs to get sufficient Health Insurance, so that hospital bills can be managed without dipping into savings to pay the bill.

Summary, These good financial habits require some practice and patience initially, but they become a way of life as you progress. By incorporating healthy financial habits into your lifestyle you will gain significant control over your financial well-being and future being will thank you for taking the decision early on.