India’s Millennial, 400 million and growing, are fast becoming the driving force behind its evolving mobile economic revolution. The youth of this generation are better educated, better connected to information, and better connected to the world.
As the largest Millennial population in the world, the sheer number of India’s 18- to 35-year-olds doubtlessly will hold significant sway over the country’s immediate economic future. Their influence could far exceed their numbers. But to succeed in their own spheres of life, they need to be strictly disciplined about their spending and savings habit.
Here we may have various healthy money habits that they might follow to proposer in long term.
Keep your budget simple
Firstly you need to keep your budget simple. If you’re into personal finance, it’s easy to geek out on all the apps, graphs, and financial tools available, and it’s also easy for our finances to get too complicated with tons of budget categories, subcategories, and the like. It is better to take a more minimalist approach and sticking to a budget might be much easier. Remember, you don’t have to track every single penny to maintain good money habits.
Save for your retirement
Secondly, start saving for your retirement early. Whatever you do, start as early as you can. Even just Rs 50 a month adds up, and if your employer matches your contributions, that’s like doubling your money for free.
Give up on the frugal habits
Thirdly let’s give up on the frugal habits that aren’t worth it. Just as important as establishing better habits is ditching the bad ones. Some frugal tactics aren’t actually worthwhile, like driving ten miles to save a dollar on gas. To figure out if a frugal habit is really worth your time and energy, start with your hourly income and calculate the “time value” of that frugal habit. Find out how much your time is really worth with this calculator.
Paying debt down
Fourthly, paying debt down is typically an ongoing activity, but you can accelerate your debt reduction by making it a habit to put all “extra” money (bonuses, cash gifts, tax refunds, and so on) towards your debt. Consider these financial windfalls as already earmarked for debt repayments and you’ll see your debt disappear much more quickly than if you just made your standard payments.
Personal values and goals
Lastly, for every purchase, consider if it’s in line with your personal values and your goals; otherwise, you might be either spending too much or simply on the wrong things. Make it a habit to question whether you’re spending your money where you spend your time and prioritizing the things that can boost your career or your earning potential.
Spend less than you earn
But always keep in mind the basics: Spend less than you earn and invest the difference. Pay off your credit cards in full each month. Don’t buy things you don’t need. Most personal finance books and articles boil down to the same bits of advice, but we still need them because it’s all too easy to get off track. The start of the year is a great time to get back to basics, but set up reminders for yourself to maintain these good habits throughout the year. Visual triggers, like taped goals on your credit cards or simply calendar notes on every payday, could remind you of what matters most. Often, it’s the little things that make a great difference.