The capacity to fully meet one’s current and future financial obligations, to have confidence in one’s financial future, and to make choices that allow one to enjoy life are all aspects of financial well-being. One of the largest lenders, the State Bank of India (SBI), has posted five pieces of advice on its Twitter account to encourage people to put their financial security first in 2023.
It is essential to have a solid financial foundation in order to safeguard against unforeseen circumstances and avoid debt traps. In addition, it gives you freedom of choice, allowing you to avoid relying on others during times of greatest financial need.
The State Bank of India provided the following five recommendations:
- Avoid spending too much on wants because doing so will always hurt your budget. Experts in the field of finance say that if you want to have a healthy financial life, you should avoid going over your budget and getting into a lot of debt. Spending too much can also prevent you from achieving your financial goals.
- Establish a contingency fund: Experts recommend that the emergency fund contain sufficient funds to cover at least six months’ worth of operating costs. Move your savings into a new, separate account as soon as possible.
- Start saving for your retirement by putting 10% to 15% of your salary aside for retirement.
- SIPs and tax-saving funds are two options worth considering because of their substantial investment returns. You can deduct up to Rs. 10,000 from your investment in ELSS through SIPs. 1.5 lakh out of your taxable earnings.
- Paying your credit card bills and EMIs on time will raise your credit score.
