#1 – Spend less than you earn –

Many people spend more money than they earn, spending more than they can afford to pay back. They justify this by saying they will “get a better job” or “earn more money” in the future. The reality is that most people never get a better job and never earn more money. They simply spend more and more money; eventually, they spend more than they have, and go bankrupt and lose everything they have. By the time people realize they can’t afford to pay back what they have borrowed, it is already too late.

The good news is that you can enjoy your retirement while still saving money for it. In fact, you can save a lot of money, and have enough left over to spend doing the things you enjoy when you’re not working.

#2 – Keep everything as simple as possible 

In the modern world, many of us can’t help but feel like the money tree is constantly being shaken while we’re underneath, waiting for the cash to rain down on us. But just how hard is it to keep your finances in order? Some people say that the key to keeping your finances simple are ;

1. For Investing and Premium payments Set online Payment
2. Buy Term Insurance – stay away from Traditional money back plans and ULIP plans
3. Buy Family Floater Medical Insurance
4. Have minimum Mutual Fund Schemes in portfolio – a retail investor need one fund from each of categories with maximum 4-5 schemes. Stay away from creating 8-10 funds portfolio in the name of diversification.
5. Stay away from fancy mutual fund schemes that you don’t understand
6. Stay away from credit card, if you are not disciplined. In this digital payment age, if you need  card, go for Debit Card.

#3 – Cover Yourself and  Family Members with adequate medical insurance

Buying medical insurance can be complicated, especially if you are trying to cover a family. Here are some considerations that you can use when comparing policies. When you are trying to figure out how to buy medical insurance, there are a few things that you need to consider.  Do you cover everyone in your family? If so, how do you determine which members are included?  Do you consider pre-existing conditions? If so, how do you keep your costs down when you have a chronic condition?  Are there any age limits?  Do you look at how much the insurance costs, or is price not a factor?

#4 – Focus on building an emergency fund
When rainy days come, you don’t want to be left without a source of income, savings or a way to get back on track financially. An emergency fund can be the answer you’re looking for. An emergency fund is comprised of three parts: an amount you can afford to save each month, an amount you can afford to invest, and an amount of savings that would be used to help you cover living expenses if you lost your job.

 #5 – Focus on eliminating high-interest debt

If you have high interest debt, there’s a good chance you’re experiencing some serious financial stress. Maybe you’ve been late on a credit card payment, or had your car repossessed. And those are just the more obvious signs. Many people experience stress at work or home because they have bills they can’t pay. That’s why it’s so important to pay off high interest debts as quickly as possible.

The process of eliminating your high interest debt, however, is often much easier said than done. Fortunately, there are some tips you can follow to help get rid of these debts sooner rather than later:  1. Create a budget and live on it.  2. Cut out unnecessary expenses.  3. Pay cash for major purchases.  4. Try to pay more than the minimum payment every month.  5. Ask your creditors for lower interest rates.

#6 – Focus on saving for retirement

On average, people spend around 90,000 hours at work during their lifetime. That means that roughly one-third of your life is spent in a workplace environment. Most of us won’t have the luxury of retiring before the age of 60, and that means we’ll spend roughly 35 years of our life working.  You can bet that you will need to save for retirement , and the earlier you start,

There are two ways to look at retirement: as a time when you stop working, or as a time when you free up your time to do the things you really enjoy. Either way, saving enough to be able to retire early is a challenge. If you’re starting to see the light at the end of the tunnel, congratulations! Just make sure you’ve got a plan for taking that first step into retirement.

#7 – Buy term life insurance to cover your dependents

If you’re like most people, you may have never given much thought to life insurance. You may think you’re too young to worry about it, or that it can wait until later on in your life. Maybe you don’t even know what it is – or why you need it.

If you’re like most people, you probably don’t want to think about death. But when it comes to life insurance, you don’t have a choice. You have to think about it. Because in the event of your death, you want your loved ones to be financially secure—that’s why most people get life insurance. But what exactly does life insurance cover? How much should you get? And how do you even begin choosing the right policy?

#8 – Build a budget, just for the process of building it right

Personal budgeting is a simple way to help you control your spending. It gives you a way to know how much money you have and how much you can spend. If you need help with your personal budget, you can follow these steps. Step 1: Write down how much money you have and how much you spend each month. Write down all the money you have and how much you spend on each expense. This may be the hardest part of budgeting, but you will need this information to keep track of what you spend your money on. Step 2: List your monthly expenses, and try to cut back on them. List all the regular expenses you have each month. After you have listed all your expenses, look for the expenses

#9 – Rent unless your total monthly cost of home ownership is lower than renting

People are very divided on the topic of home ownership. On one side you have those who argue that you can’t put a price on owning your own home, while on the other side, you have people who say that renting is always the better option. So, which is it? That’s the big question, isn’t it? Before making a decision on whether to rent or to buy, you need to consider what each option entails, and how that will impact you. As you can see, determining whether to rent or buy a home is not quite as simple as some people would like you to believe. In fact, it’s not simple at all.

Buying a home is a huge investment that can have a huge payoff. However, moving into a home is not just a matter of comparing prices on a spreadsheet, or checking to see how much you can afford to spend versus how much the bank will loan you. There are other things to consider, like whether you can afford the costs of upkeep, how much of a mortgage you can realistically afford, and whether you want to take on long-term responsibility of a home. There are also tax implications, as renting often has tax advantages. But if you’ve decided to buy a home, how do you know what you can afford, and what’s a good investment for you?

#10 – Buy cars based on reliability and fuel efficiency

Buying a car is a serious investment, and there are a lot of different factors you should consider before making a final decision. However, two of the most important are fuel efficiency and maintenance costs. They are important for one simple reason: if you save money on gas, you have more money to invest, and can build wealth faster. If you don’t have to pay for maintenance, you have more money to invest, and can build wealth faster.

Are you ready to buy a new or used car?   When you are, you’ll be faced with a choice: Which vehicle will give you the most bang for your buck over the next few years?

#11 – Teach yourself and your children about smart personal finance from day one and be a good example

We’ve all heard the saying that if you give a man a fish you feed him for a day, but if you teach him how to fish, you feed him for a lifetime.  It’s a powerful metaphor, and it’s particularly apt when it comes to teaching our children how to manage money.  Financial literacy is often presented as a one-off lesson at school, but truly successful money management skills have to be taught over and over again, throughout a person’s lifetime.  As the old adage goes, knowledge is power, and teaching kids about money is the best way to ensure they can manage their personal finances effectively later on in life.

A lot of parents make the mistake of thinking money management is a skill that is best taught after their child has become a teenager. The reality is that children need to be taught about money management even before they learn to count. Learning about money early allows kids to identify different coins, bills, and other money related objects. This in turn will help them develop a better understanding of the concept of money. While money management is something that needs to be learned and practiced, it is a necessary skill that will help your child throughout his or her life.

#12 – Don’t touch your retirement if at all possible

There are three main reasons why you should not touch your retirement savings if at all possible. First, you may not need the money. Many people retire earlier than they planned to because of bad investments or health problems.  Retiring earlier than expected could make the rest of your life harder if you haven’t saved enough money to live on. Second, dipping into your retirement savings will likely reduce the amount you have when you really need it.

There is a popular saying that goes with retirement planning that goes something like this “Your retirement plan should be to never retire.” As the saying suggests, it is never a good idea to retire from your work life, because when you do, you essentially decrease the amount of money that is flowing in and out of your retirement funds. This might seem counterintuitive because it is a well-known financial fact that the earlier you start saving for retirement, the better off you will be.

#13 – Buy some international investments, too

It’s been said that diversification is the only free lunch when it comes to investing. But what exactly does this mean? Simply put, it means that if you spread your money across a variety of investments, your risk of losing any of your money is reduced. This is because, if any one investment fails, you don’t lose all your money.

International funds can be a useful way to achieve a diversified portfolio. Before you invest in them, it’s important to understand what they are and how they work.

For example, you could invest in different companies located in different countries. International mutual funds are a great way to do just that.

#14- When an appliance breaks, buy a new one if the appliance is 10+ years old or the repair would cost more than half the replacement cost. 

When you’re looking to buy a new appliance, you’re faced with a difficult question: should I repair my existing one or just get a new one? That decision is often made more difficult by the fact that you have to consider the cost of the repair vs. the cost of a new appliance.  The expense of a repair is relatively easy to calculate but the cost of a new appliance can vary widely depending on the make and model and the features you want.  So, you may start to think that it’s not worth it to repair your appliance.  A new one might cost less in the long run (after all, you might use it for years, depending on how long it lasts).

If you have a non-working appliance and you’re thinking about calling a repairman, you might want to first consider the cost of a new replacement appliance. If your appliance is fairly old, the cost of a new appliance may be significantly less than the cost of repair, even if you take into account the costs of the repair technician and any new parts or pieces that you may need.

#15- Practice Delayed Gratification 

Delayed gratification is all about resisting the temptation to satisfy your impulses. If you can do this, you can save money to buy something that is more expensive later. The challenge is resisting the urge to buy something that appeals to you now. It is easy when faced with a credit card to get carried away and buy now, pay later. If you want to be able to buy things that are more expensive later, you need to practice delayed gratification. This is a skill that can be learnt. Over time you will get better at resisting the temptation to buy something now for a more expensive item later.

#-16 Don’t prepay a low-rate, deductible mortgage. 

You could save hundreds of dollars a month right now if you pay off your credit card debt instead of paying off your low-interest mortgage. No, not if you’re behind on your payments, but if you have a low-interest, fixed-rate mortgage and you’re getting a good deal on a credit card with zero percent, or low-interest introductory offers. In a low-interest-rate environment, it can be worth paying off a low-interest mortgage and using the money saved to pay off unsecured debt faster and pay even lower rates of interest.

#-17 Evaluate and re-balance your finance portfolio

One of the most important goals of any investor is to make sure their portfolio is consistently performing as expected.  The first part of this is knowing how your portfolio is doing, i.e. it’s performance.  The second part is knowing your risk level and how it compares to your goals.  By reviewing and rebalancing your portfolio, you can make sure that your portfolio is aligned with your goals.  When you do this, you may be surprised just how much you are able to increase your return on investment without increasing your risk.

Financial advisors tell you to review and re-balance your investment portfolio to ensure you’re getting the right amount of risk from each asset class. For example, if you have too much of your portfolio in stocks, you could be exposed to a major market downturn that will wipe your savings out. On the other hand, if you have too much in bonds, you won’t earn enough of a return to keep pace with inflation.

#18 Host a Financial Date either with yourself or your partner/family each pay day.

Many people keep their financial information from family and friends, but it is important to be honest and open about your money with your spouse and children. The idea of sharing your financials with family is often met with resistance, because people are cautious about how their family might react. For example, if your financial situation is dire, your family might worry about your ability to provide for them. If you’re financially well off, your family might resent your wealth. But, it’s vital for everyone to be on the same page about money, so that unnecessary arguments don’t start and you don’t have to hide your money situation anymore. It’s important to begin talking about your finances with your partner and family, even if you’re not ready to share

#19 – Cancel your unused memberships and subscriptions

You’ve probably heard that one of the easiest ways to save money is to cut back on membership fees and subscriptions, but it can sometimes be hard to figure out where to start. You may have a bunch of subscriptions you don’t use, or you may just be curious about which of your memberships cost you the most. Either way, it’s a good idea to take a hard look at the memberships and subscriptions you currently have and determine whether you are getting good value out of them.

#20 – Don’t ever go shopping without a grocery list

Shopping without a shopping list is like driving without a roadmap: you may know where you’re going, but you can easily waste a lot of time and gas getting there! That’s why we suggest that you put together a shopping list every time you go shopping. (You can even use a shopping list app on your smartphone!) Don’t worry—it’s easier than you think.