Open a Savings Account today, to save and invest in a prudent manner

“Successful people are simply those with successful habits.” - Brian Tracy

Financially prudent people are not born that way. Over the years, they would have honed their skills and picked up habits that moulded them into their present self. Do you aspire to be in their shoes? Here is a list of 8 useful savings and investment habits of financially prudent people that you need to adopt today. 

1. Stay ‘Cash Broke’
 

Have you heard the saying ‘money earns more money’? That's completely true. Not deploying your money into investments or income-earning opportunities means forgoing its potential to earn. So, stay as cash broke as possible and don’t keep money lying idle. Once your essential expenses are met, deposit the extra cash into a Savings Account that will earn you returns in the form of interest. 

2. Automate your savings
 

Set up automatic SIPs from your savings account for each month as soon as your paycheck arrives. A Savings Account with IDFC FIRST Bank will help you inculcate this useful financial habit as you can start multiple SIPs from one single account!

3. Learn Financial Skills
 

Learning new financial skills can help you stay on top of your finances. Here are some that you should definitely look into:

· Budgeting

· Financial planning

· Accounting

· Tax planning

· How stock markets work

You can access free learning resources online or contact a professional for help.

4. Have Multiple Income Streams
 

Having more than one Income Stream will relieve you from being dependent on a single source of income, and this ensures a more secure future. Try to generate regular cashflow from avenues such as rental income from property, stock dividends, mutual fund returns, or even by launching a side hustle such as a small business.

5. Avoid short-term hacks
 

Don’t get lured by short-term investments or schemes that fail to result in any fruitful returns. Instead, keep a long-term horizon in mind and plan for the foreseeable future. Quick money-making avenues that promise instant returns usually don’t last long; they only waste your time and energy. Also, beware of fraudsters or schemes that seem too good to be true. 

6. Use debt wisely
 

Taking on debt should be a calculated decision that substantially lowers your financial outgo and fulfils pressing needs. What's not wise is staying in debt forever. Financially prudent people try to reduce their debt obligations at the earliest. Try to become debt-free as soon as you have enough liquidity. 

7. Avoid impulse shopping 
 

Impulsive buying behaviour can quickly deplete your hard-earned money. Instead, plan your purchases in  a manner that you end up saving money.

8. Plan for retirement
 

While retirement may seem a lifetime away, it is good money discipline to start saving for it right from the beginning of your career. Since most of us cannot rely on a regular source of income after retirement, it is better to invest money in avenues that generate good returns. A savings account with IDFC FIRST Bank helps you earn decent interest, which is credited into your account every month. 

Conclusion
 

Financially prudent people don’t do vastly different things; they do the same things differently. They ensure that their financial habits support their long-term goals and align their savings and investments with them. An IDFC FIRST Bank Savings Account can help you in this regard. Apart from adding to your wealth by generating interest at attractive market rates, it offers some great features such as monthly interest credits, free and unlimited ATM withdrawals, personal accident insurance coverage, and much more! 

Get in touch with us, and open a bank Savings Account with IDFC FIRST Bank today!

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.