5 Tips about financial life.

1.    This year I learned about financial planning and how we must track our spending.  One of the first answers to the question of how to improve financial health is related to money management and planning. It does not matter if you are earning the big bucks, your goal should just be to keep track of your spending every month and to make the most of every rupee you earn.

2.    Learned the importance of liquid funds. Another masterclass in how to improve financial health is about creating a solid reserve of cash to fall back upon. Usually, financial experts suggest having at least three to six months of expenses as emergency funds in your bank account. You should preferably have an amount that will cover your medical bills or will suffice for other unforeseen emergencies. These are set apart as liquid funds that will provide cover for the rainy days.

3.    Learned a few things about investments. The next step after creating an emergency fund is to smartly invest your money in investment schemes. These include Public Provident Fund (PPF) and other market instruments such as bonds, exchange-traded funds (EFTs), etc. These will build wealth for you in the long term.

4.    learned how not to burden ourselves with debts. As obvious as this may sound, if you want to know the key to how to improve financial health, you should dodge any kind of debt, especially bad debts and loans. By ‘bad debts’ I mean unnecessary personal loans and credit card debts, interest on consumer credit, etc. These are especially notorious for eating up your savings.

5.    I learned to read more about financial aspects. The fact that you are reading this article in itself is a good sign. It shows your thirst to know how to improve financial health. The wealthiest people in the world are often also the most curious and smartest. Bill Gates, for instance, once said that he reads about 50 books a year. This habit of constantly updating yourself with new skills and knowledge adds to personal growth.

I hope you are going to implement at least one of these habits. 

All the best!

Drop a comment if any doubt.