Our lives are completely dependent upon money. We wish to save more, invest more and earn more, but somehow we fail to do that.
It’s not because you fail to save, but it’s because you haven’t adopted any smart money habits in your life.
Since my childhood I heard people say money is not important, money is the source of all problems, rich people are bad, and so many bad things about money.
But as I grew up I experienced and learnt that money is a very important part of our life. I felt the difference between having and not having money.
People treat you according to your bank balance not according to how you are related to them.
There is a vast difference in life with money and no money. The environment you live in and the family and friends around treat you well if you earn good sum of money.
It is a bitter truth of life. And having lots of money is not a bad thing. You are in this world to enjoy your life. And if you have more money you can enjoy life more.
Money will not make you a bad person, but how you use money makes you a good or a bad person.
Money will not make you a bad person but the way you behave when money comes to you does.
So what is the smartest thing you do for your money?
Here in this post, I am going to share some smart money habits which I have been practising in my daily life to continue the abundance flow of wealth.
This smart money habit is wonderfully working for me, and I am sure it will equally work for you if you practice it sincerely.
9 Smart Money Habits
1. Simplify your Budget
Manage your budget in the simplest ways. The best way to simplify your budget is to divide your money into different categories so that you will be able to manage them easily.
I have made a small diary where I’ve written in headings the total monthly income. From the total income, I keep 20% of the income tax.
Whatever you earn the first right of your income is the government of your country. Your duty as a citizen is first and foremost the betterment of your country and the countrymen.
Keep the 20% separately with a happy heart and thoughts for your country. You will also not feel burdened when the financial year ends. You don’t have to manage money from your current income, you have already accumulated the sums for your tax payment.
The rest amount is divided into your income for your house expenditure, EMIs, health, emergency fund, and travel, you can add more or subtract according to your needs.
I keep 20% for my house( I am soon starting to construct a house ),
15% for investment ( this is solely for the future investment to multiply my income).
10% for travelling ( me and my daughter love travelling ).
10% for my daughter’s marriage.
5% for donation ( for charity ).
Me and my daughter keep some amount for our monthly expenditure.
By applying this method, we can travel, enjoy, and help people in need and at the same time save money for important purposes like the construction of the house and my daughter’s marriage.
2. Save Save Save
Saving money is the smartest money habit. Cultivate a habit of saving your money wisely. The best way to save money is to keep the money in the bank by fixing deposits, recurring deposits and buying policies.
The smart way is deducting your money from the bank itself for your savings by ECS ( Electronic Clearing Service ) method.
If you have a saving scheme then you are bound to keep your money for that purpose, otherwise, you won’t be able to save the money. Your money will slip from your hand month after month without your knowledge.
Be smart and apply this smart habit to save your money.
3. Emergency fund
Keep some amount for the emergency fund. Life is very uncertain. Anything can happen at any time.
It’s a smart decision to keep aside some amount as emergency funds. Here, I would like to share a small example which I came across recently.
Recently my brother’s phone fell and got damaged. He gave the phone for repair and he paid the amount from his piggy bank. He runs a hotel and coins come often. He keeps coins in his small piggy bank as an emergency fund.
If you are a working person then you can save some amount as an emergency fund.
This smart habit of keeping emergency funds is really smart and helpful.
Any emergency can come out at any moment, so if we are prepared beforehand there won’t be any burden.
4. Pay off your Debt
It’s natural to be in debt in life at any point in time. Being in debt is not a shameful thing, but avoiding paying it off is shameful.
Be very smart to pay it back as soon as possible. Keep the amount separately if you have any debt.
Remember being in debt is a negative energy and it will block all the positivity of life.
Try to clear it out, even by giving any small amount if you are tight in your budget.
Trying to be debt-free is a smart money habit as your positive thoughts about money can attract more money in the future to clear your debt faster.
A few years back I used to be in debt at the end of the month. But as soon as I received my salary I used to clear my debt first thing in the month.
Now I do not have any. Unexpected financial security showered in my life. It was due to my earnest effort to be debt-free and my smart money habits.
5. Investing
Investing is the smartest money habit. This habit will give you financial security for the future.
It is best to invest your money rather than keep it at home or in the bank. You can invest in lands, houses, gold or in business.
But before investing take a thorough investigation. Invest your money wisely.
Gold is getting expensive every day. And it’s natural for a woman to be in love with gold jewellery.
So every month I deposit a certain fixed amount in Golden Harvest policy for 10 months. After 12 months, I buy gold jewellery for that amount.
It’s been the second year I bought gold on my birthday. I deposit my money in such a way that I can bring my gold jewellery on my birthday.
Isn’t it a smart way to have gold jewellery on birthdays?
My smart money habit of investing in gold every month is making me able to buy gold no wonder how expensive it has become.
6. Set financial goals
Setting financial goals first thing in the year is the best resolution you will make for the year and to check it time and time again.
Set a clear target where and how you are going to save or invest money. Be aware of all the expenses you are making so that unnecessary expenses can be avoided.
In life, it is the best idea to keep targets and goals. Life without a goal is directionless. We do keep goals for a successful life and financial goals are as important or rather the most important goal to keep in life for a fruitful life.
In this uncertain life, it’s best and smart habit to set financial goals. Keep aside some amount for health schemes, life insurance, emergency fund etc.
Setting financial goals will give you peace of mind and secure your future.
7. Retirement Plan
A retirement plan is a smart strategy for long-term saving. It’s best to plan for your retirement to spend a stress-free life post-retirement.
These days every bank has this scheme. Choose the best deal and invest for your retirement.
Remember a bitter fact of life, if you have money you will be surrounded by friends and family otherwise in an old age home.
It’s very important to plan for your old age now and it will be your smart decision.
8. Live a Sustainable Lifestyle
Your money habits will become smarter if you follow a sustainable lifestyle. To spend your money on things which are good for the environment is the smartest and best money habit.
We live in this beautiful earth and it is our responsibility to save it from further damage.
When buying cut off the plastic items, buy organic foods, buy only very essential things, and do mindful shopping.
Plastics are very bad for health as well as the environment if we are mindful of spending our money then this is the smartest money habit.
If we consume organic foods then there is a chance we will remain healthy. Instead of paying the doctors and hospital, it’s a smart approach to consume the best foods.
9. Smart Shopping
To practice smart money habits it’s necessary we practice smart shopping habits.
Our hard-earned money should not be just spent on items which will not come in use month after month.
Buy only the things which are needed. We always come back with extra bags with shoes, bags, clothes and whatever we see while shopping.
It is advisable to make a list of things when going for the shopping. And carry cash with you and your card at home.
Shop mindfully, it will help you stop spending extra money on unnecessary things which will help you save money.
Saving money is a kind of smart money habit which will add money to your account.
Final Thoughts On The Smart Money Habits
These smart money habits are making my money grow. It is not a one-time practice but day to day practice.
Small approaches in your day-to-day life by mindful shopping, and checking your everyday expenses help you stop buying unimportant things.
Keeping monthly notes on income and expenses helps you to spend your money wisely.
Whatever amount is saved during the year buy a policy or make a fixed deposit.
Build these smart habits and you will enjoy prosperity. You will enjoy a satisfied and stress-free life.
