8 Steps You Can Take Immediately To Improve Your Financial Situation
Let’s admit everybody is in a state of mind where you ask yourself every day about how to improve your financial situation?
Now, asking the question is not only sufficient you need to take some important steps and have some financial discipline in improving your financial condition.
So here are some important steps I am taking to improve my financial situation to gain success in life and achieve my goals.
Start implementing it in your life too and see a boost in your financial situation immediately.
HOW TO IMPROVE YOUR FINANCIAL CONDITION
Financial Goal Setting
Setting your financial goals is the first important step in achieving an improved financial situation.
It is important to be aware of the financial condition of yourself and what you want to achieve with your finances in a short, medium and long-term.
Like suppose, you want 1lac for a vacation after 6 months so its the crucial first step in knowing how much you need to save or invest in these six months.
Setting a goal also lead you to a plan to get there.
Also, Read 9-steps to financial freedom.
Don’t Blame Others For Your Debt
The thing is that we are the creator of our own destiny and we are solely responsible for our present condition.
One of my friends always blames the economy or his wife for his financially broke condition despite having a handsome salary.
So you can always take steps to improve once you point out that, the problem lies in you, not others and what can you do to fix the problem.
it’s important to forget the past and then plan for the future development of right money habits and mindsets.
Start organizing even little things that matter to your life, your office desk, things that you keep in your wallet, listing everything important to you, getting rid of old stuff.
These practices would help your mind in getting more organized, so you would focus in the right direction and what really matters.
Organize your pattern of spending in line with most of the wealthy and financially successful people do.
Most wealthy person has the following pattern of spending-
- 25% for savings
- 20% for rent or home EMI
- 20% for food and grocery and clothes.
- 10% for entertainment
- 5% for transport needs.
- 20% for child education and medical expenses
I am a big advocate of creating a budget, As most people know budgeting is a practical way in keeping track of your income and expenditures.
If you subtract your earnings from your bills and shopping you get an amount and if that is negative you immediately know you need to cut off some unnecessary expenses.
Most people don’t create a budget as they have a negative feeling and mindset about budgeting, the fact is that its just a way to know where you stand, whether you need to cut some expenses or whether you have more to save or invest.
Wasteful Spending Or Impulsive Spending
Today malls and shops are designed in such a way as they can psychologically alter the mindset of consumers visiting them and make them shop more, even shop for the things they don’t necessarily need.
So always be aware of your needs and wants.
Always take your time in deciding when you intend to spend a huge sum of money.
Avoid Impulsive spending and compare the pros and cons of how that spending would affect your budget and long-term financial goals
Credit Score Improvement
While the credit score doesn’t directly affect your financial situation but it affects the cost of any necessary loan you will be taking in the future.
You could save huge sums of money if you have a good credit score.
Banks prefer you in loans and for their credit card products if you have a credit score above 750
You can check your credit score free on sites like paisabazaar.com.
It’s not difficult to improve and maintain a good score, just pay your loan EMI and credit cards due in time and have a good financial discipline.
Improve your income
You can always improve your income by creating a side hustle and giving some portion of your energy on a side job or income source
Start freelancing on job sites, you can put one of your unused room or unused property on Airbnb
Start a blog and earn some passive income.
Creating another source of income whether small or big will create a sense of financial security in your mind
Most financially successful people have 3 or more sources of income.
Use Coupons And Cash backs
Don’t underestimate the power of coupons and Cash backs for your spendings
Credit card points and cash backs can give you thousands of rupees savings on your purchases and travel.
Read: How To Save Money.
Use discount coupon sites such as grabon.in to get huge discounts with their offer partners.
Billionaires such as warren buffet are also seen using coupons for their purchases.
I have mentioned all the immediate steps you can take to improve your Financial situation, besides one more important thing I would like to emphasize is about constantly educating yourself about market, economy, and money.
Start with some good books such as The Intelligent Investor and some good personal finance websites.