M O N E Y H A B I T S

Loading

What is Money Habits?

When you visit a doctor for some complaint relating to your health, diagnostic tests like X-Ray/ Sonography, ECG, etc. help to understand what is the real problem behind your ailment/ complaint. This diagnosis then helps in suggesting the right remedy for curing the ailment. Likewise, taking an insurance policy or starting monthly mutual fund SIPs, investing in equity shares, buying properties or for that matter investing money in a Bank FD is always good, but you cannot know whether this is the right fix for your total financial security, without knowing what the actual problems are.

Making an investment or buying a policy cannot always be the answer to the multiple problems that you may be facing in your financial life like high debts, achieving your aspirations, lack of financial records, paying too much taxes, etc. So, to understand and plan the approach for your financial security, it is important to diagnose your problem right. Money Habits tests are designed to do exactly this in a very simple, easy and Do-it-yourself way. But what are Money Habits? Money habits are the things you do every day with your money. Every money decision that you make, whether big or small, is in some way or the other linked to your habits.

For e.g. if you don’t know how many stocks you have in your demit account or if you forgot to pay the premium for your medical policy on time; it’s because of your money habits. Similarly, if you have filed your income tax return much before the due date, that’s a good money habit. Whether it’s the most commonly faced financial problems like paying too many EMIs or not able to save enough or more complex issues like how to save income taxes, tracking your money habits is the only way to find solutions for these problems.

All the different things / activities that you do in relation to your money can be organized and classified into 7 Money habits. So, take our Money habits test and you will have access to a new way of understanding how your habits can help to identify the important financial issues at hand and change your life for good. Good money habits help you to look after yourself and your family and become financially independent early in life. Get your score and aim for more!!

Know the 7 Money Habits

Budgeting

Making Budgets is a key money habit and has important consequences. Budgeting can sometimes be the difference between large and small wealth creation among investors. This group includes making allocations of your income towards expenses and savings, planning for your goals, and planning for a linear growth of your assets and investments.

Protection

Loss of life is a big risk, but that’s not the only risk to your financial security. Identification and mitigation of various risks (whether by insurance or otherwise) is very important for maximization of your financial security. Risks cannot be avoided, they can only be hedged and that’s the reason this habit is so very important.

Liabilities

Liabilities impact your financial security in two ways – regular repayment of liabilities as EMIs reduces the monthly savings that can be invested and the value of outstanding liabilities reduces the borrower’s net value of your assets and investments. But not all liabilities are bad and that’s the reason you need to track your habits in this group to keep the good away from bad.

Investment Tracking & Review

Investing money is an important first step but without continuous monitoring and review, even the best of investments may fail. Striking the right balance in diversification is the key to managing your investments and financial security. This group is one of the core habits which many individuals follow; but only half-way.

Income Tax

Tax-planning, Tax-compliances and Tax-records management are the three pillars of personal income tax. Your financial security can be maximized only by giving equal importance to all these three elements. Befriending this habit will not only help you stay compliant with the rules but may also help you save some taxes.

Succession

Managing and securing your assets during your life-time is crucial for your financial security; while managing beyond your life-time is crucial for your family’s financial security. Your habits in this group will help make life simpler for self and family.

Documentation

Management and up-keep of financial documents needs to be up-to-date to maximize your and your family’s financial security. Online Banking, online shopping and using payment wallets on the go is bliss, but ignorance of adequate safeguards for your digital assets is definitely not bliss. Inclusion of his habit in your life helps you sleep better.

Budgeting

Making Budgets is a key money habit and has important consequences. Budgeting can sometimes be the difference between large and small wealth creation among investors. This group includes making allocations of your income towards expenses and savings, planning for your goals, and planning for a linear growth of your assets and investments.

Protection

Loss of life is a big risk, but that’s not the only risk to your financial security. Identification and mitigation of various risks (whether by insurance or otherwise) is very important for maximization of your financial security. Risks cannot be avoided, they can only be hedged and that’s the reason this habit is so very important.

Liabilities

Liabilities impact your financial security in two ways – regular repayment of liabilities as EMIs reduces the monthly savings that can be invested and the value of outstanding liabilities reduces the borrower’s net value of your assets and investments. But not all liabilities are bad and that’s the reason you need to track your habits in this group to keep the good away from bad.

Investment Tracking & Review

Investing money is an important first step but without continuous monitoring and review, even the best of investments may fail. Striking the right balance in diversification is the key to managing your investments and financial security. This group is one of the core habits which many individuals follow; but only half-way.

Income Tax

Tax-planning, Tax-compliances and Tax-records management are the three pillars of personal income tax. Your financial security can be maximized only by giving equal importance to all these three elements. Befriending this habit will not only help you stay compliant with the rules but may also help you save some taxes.

Succession

Managing and securing your assets during your life-time is crucial for your financial security; while managing beyond your life-time is crucial for your family’s financial security. Your habits in this group will help make life simpler for self and family.

Documentation

Management and up-keep of financial documents needs to be up-to-date to maximize your and your family’s financial security. Online Banking, online shopping and using payment wallets on the go is bliss, but ignorance of adequate safeguards for your digital assets is definitely not bliss. Inclusion of his habit in your life helps you sleep better.