5 Things You Must Do To Maintain Financial Health

Published by Sharekhan Education | December 28, 2021

5 Things You Must Do To Maintain Financial Health

Financial wellbeing is of utmost importance for everyone. Whether earning or not you need to be financially independent to live a life of dignity don’t you think? It is therefore important that you do these 5 things that can help you maintain financial health.

1. Adopt a minimalistic lifestyle- This in no way means that you need to starve yourself or deny yourself the pleasures of living a good life. NO!! What we mean to impose by a minimalistic lifestyle is; living within your means. Striking a balance between the present and the future. This is primarily important if you want to lead a decent life post retirement don’t you think? Can you imagine what life would be if you do not have sufficient resources to meet your needs post retirement?  A minimalistic lifestyle will help take care of your current needs and also help maintain financial health for a better tomorrow.
2. Save for the rainy day- Now this is nothing new that we are discussing here. Maintaining an appropriate emergency fund is vital and primary for your financial health. So if you have not yet designed your emergency portfolio it’s high time you did so.
3. Become an investor -Think long term- Adopting a minimalistic lifestyle will build up a good amount of savings for you. So after you have put aside some in emergency resources it is time to think long term. Plan out your goals and understand how much you need to be meeting them. Chalk out a right asset allocation and start investing based on your risk profile and time to goal.
4. Avoid Behavioural biases- This is very important must say. Just because every person known to you is rushing to make hay while the sunshine’s in the stock market, you need not follow the same. Do exercise caution; following the herd may be dangerous for your financial wellbeing. So avoid herd mentality and such other behavioural biases. Do what is right for you not what is right for someone else. Remember one man’s medicine can be another man’s poison.
5. Take right investing decisions- This can happen only if you have adequate financial knowledge- a formal financial education may not be possible for all but it is really crucial that you gain important knowledge about the assets you want to invest in; ideally the risks and returns associated with them. So open your minds and let the information in. With so much information available freely do make positive attempts to read through key information documents or financial statements or at least call up your investment advisor to know more than what you already know. This will help in taking the right investing decisions.

In short we can say that financial wellbeing is possible typically if you take your finances in your control. Try doing as suggested here and see the difference it does to your financial health.

Happy Reading!!

Embark on your Investing Knowledge 

If you would like to understand more about the concept of ‘investing’, register for one of our free “Webinars“. Join our investing education program called “Ace Investor” to polish your investing skills. Not only do we teach you the step-by-step process of identifying fundamentally sound stocks, but you also learn how to invest like a professional. So, come and experience it yourself!