Every parent wants their child to enjoy a comfortable life. However, to live a good life a streamlined flow of money is essential. Regular savings can allow them to invest in a good child plan to take care of their child’s future. Your savings are greatly affected by your financial habits. The earlier you recognize these habits, the better opportunity you will have to modify them to maximize our savings. Here are 5 good and bad financial habits that affect your savings in positive and negative ways:
Organizing Financial Priorities
Filing the pending, bills paid receipts and other similar documents will help you to regulate your spending habits. Likewise, you also need to maintain a written financial calendar to identify monthly expenses. It will help in curbing the overspending as you have a clear picture of outstanding and upcoming expense. The savings can be utilized for investment in a child plan or other similar saving schemes.
Making Right Plans at right times
No matter how much time you have on your hand, define the goals and know what it takes to reach there. What’s most important here is that having a tangible plan will allow you to start walking in the right direction at a measured, continued pace without lagging behind or leaping ahead. Whether you want to buy property or want to invest in a good child plan you shouldn’t delay your actions unnecessarily. A steady and well-planned strategy will allow you to win the financial race.
Protecting your investments
It is very important to get all your investments insured adequately whether it is gold or property. You would surely not like to remain prone to the risks. Theft, damage or other unexpected harms to your investment products can shatter your entire financial strategy. It empowers you to claim the amount in case of any unexpected damage or loss of your investments products.
Extra jobs for more income
Extra jobs can also help you to increase savings by increasing monthly income. The best thing is that today there are a number of websites that allow you to take up a freelance job that interests you, finish it from the comforts of your home and send over the mail to the client. You can expect an extra boost of 30-35% every year that can be utilized to invest in new child plan products or increase the amount of existing investment.
Due to the volatile nature of the market, the health of your portfolio keeps on fluctuating on a periodical basis. Monitoring your investments and maintaining them to align with the existing markets conditions will allow you to protect your investments from depleting while at the same time taking the best advantage of market-linked benefits by rotating your investments.
5 Bad Financial Habits
Being too conservative
The significant returns from equities can actually be considered as “vitamin pills” to boost the health and stamina of your wealth portfolio. Being too conservative will prevent you from taking benefits of the significant returns offered by pure equity market.
Accepting every whim and fancies of your child
Many parents accept every whim and fancy of their child is an expression of love that makes the child stubborn as well as a spendthrift. It could be a bit easier for you to fulfill different desires of your child when they are still young but with age, their demands too increase to include latest technical gadgets, power-bikes, latest designer clothes, etc. Buying these lifestyle items can make a big hole in your savings.
Not demarcating between desires and needs
Confusing demands with needs can inflate your monthly expenses significantly. Having a shelter is a need but spending lavishly on your house is a desire. Clothes are needs but buying the latest designer dresses at very high prices is a desire that should be curbed. Acceding to such lifestyle desires can prevent you from saving for the future of your child.
Lack of financial discipline
Without a proper financial discipline, there are high possibilities that you may start overspending that would eat into your savings and prevent you from investing sufficiently in your child plan. The well-maintained financial discipline keeps you updated with the present costs, identify the fluctuations and devise the strategies to curb the overspending before it starts disturbing your budget.
Excessive use of credit card for purchases, buying monthly grocery on credit, living a lifestyle that doesn’t align with your modest budget and hasty investments are some of the reasons that can make a family enter the abyss of debt. The most cited reason for debits is lack of funds. However, you need to identify and regulate your spending habits to live a debt-free life.
You need regular savings to build a decent financial legacy for your child’s future. Financial habits play a pivotal role in determining your savings. Especially if you have some long-term financial plans like regular investment in a child plan, then you need to recognize good and bad financial habits. It will help you to modify your habits to promote maximum savings.