How does Gen Z in India reimagine its own identity and set of core values? India has undergone tremendous changes in the last several decades, and these changes have had an effect on the thought processes and living styles of the country’s future generation. This includes technical advancements and following results in each area of life. They are very much aware of the importance of financial independence. They are keen observers of the most noteworthy developments happening around them. They can weigh the benefits and drawbacks and choose where to put their efforts. Today’s generation is more updated than their forefathers. That is why, at this young age, most of them are more familiar with alternative saving methods such as gold bonds, cryptocurrency, and stock markets.
However, there is room for educating many of them about prudent investments that will safeguard their future in some manner. A thorough planning is crucial to grow. A few pointers on effective money management are as follows.
The Budget Is The King
Every country’s economy runs on a financial budget for the year. Likewise, an apt budgeting should be implemented for your monthly income. Creating a monthly budget is one of the first things you should do while preparing your savings. Budget is the determining factor of your income and expenditure for the upcoming month. The 50/30/20 guideline states that you should spend 50% of your money on necessities, 30% on wants, and 20% on savings.
The Liquid Cash Or Emergency Fund
Nowadays, people are increasingly cognizant of the need to have some emergency cash. What happens next is beyond our control. We have learnt that during the tough time of the pandemic. Therefore, maintaining an emergency fund for immediate requirements like a medical emergency is crucial.
Use Digital Fintech Platforms.
These days, ample facilities are available online for any kind of financial transaction. You can save time using those facilities instead of dealing with banks or brokers. Such platforms provide detailed tutorials on every aspect of saving. By taking advantage of such platforms, one can easily invest in stock markets, mutual funds, etc.
Track Your Debts
A suitable tracking mechanism is required if credit or loans need repayment. You must manage a fund to pay off your debts on time.
Minimize Superfluous Spending.
Cutting down unwanted money flow is the key to saving more. If you thoroughly analyze, you can find many unnecessary expenses coming your way. Cut them back wisely and try some innovative approaches, like a “no expense month” or a ‘52-day challenge’ to save money.
Kakeibo Method
‘Kakeibo’ is the Japanese method of personal financial planning. This is an effective method as it deviates from the norms of conventional budgeting. ‘Kakeibo’ refers to ‘household financial ledger’. You need to keep track of all your income and expenditures in this book. But simultaneously, you are supposed to write the motive behind each expenditure you make. At the end of every month, you can review your financial flow, which helps you track your unwanted expenses. In short, ‘Kakeibo’ enables you to become mindful of your expenses.
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