Making smart money choices requires a bit of education and money strategies. From mending your money habits, a few smart money habits can put us on the right track of being financial healthy. 

Here are some smart money moves we can have. 

Avoiding Instant Gratification:  SALE, SALE and more SALES more and more e-commerce sites offering bigger discounts to get a share of your wallet.

 Restrict spending by setting a self spending limit. Find appropriate methods to save, park and invest money. Even if it’s a small amount, bundle them up and save. When you avoid instant gratification and save money you are giving your money a chance to accumulate and grow. When you are able to resist your ‘I want it right now’ temptation, you have successfully overcome your first obstacle towards wealth creation

Don’t buy term plan to cover post retirement years

Term plans are income replacement tool for the financial dependents. Therefore, the insurance cover is not required after retirement. Buying cover beyond retirement age will increase premium.

Maintain credit score

Ensure paying credit card bill, EMIs and utility bills before due date to maintain credit score. A low risk customer gets low interest rate loans and thus saves on EMIs.

Buy a longer term health insurance

Health insurance premium increases when age crosses predetermined age slabs.  We can save on insurance premium by paying premium for more than one year thus locking the premium into current slab rate. We can also get benefit of lump sum payment discount.

Don’t surrender your ULIP plan within initial four years

Surrender charges are applicable till initial four years of ULIP plans.  Hence surrendering after four year will save surrender charges. As also the   charges other than mortality charges decrease over period of time.

Give auto Debit bank mandates

Give auto debit mandates to bank for utility bills so that the bill payment due dates are not missed and charges can be avoided. Activate payment due date alerts to remind.

Payoff expensive and bad loans on first priority

When paying off the loan give priorities to higher interest loans as also bad loans like credit card dues before closing goods loans such as home loans etc. 

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