10 good financial behaviours you should follow

Feb 15, 2023

By: Anagh Pal

Financial literacy week (Feb 13- Feb 17)

Reserve Bank of India (RBI) has been conducting Financial Literacy Week (FLW) every year since 2016 from February 13-17 to propagate financial education messages on a relevant theme. The theme this year is - “Good Financial Behaviour - Your Saviour”. Here are 10 good financial behaviours you should follow!

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Create a budget

Have a budget in place to get a grip on your income and expenses to control your spending, understand your expenses and save more money.

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Track your spending

Use an excel sheet or personal finance apps to track your spending so that you have an idea where your hard-earned money is going

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Build an emergency fund

Build an emergency fund of at least 6 months of your monthly expenses to help you tide over situations like a job loss.

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Save before you spend

If you spend and then save, you may end up saving less, or nothing. So, first save and invest your income and then spend it.

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Borrow what you truly need

Loans are easy to get nowadays, but you need to pay them back. So borrow only when you truly need something and try not to make impulse purchases.

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Pay off high-interest debt first

Credit card dues and personal loans have a very high rate of interest up to 45 percent. Pay these loans off first to avoid landing in a debt trap.

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Set reminders for payments

Missing payments like EMIs and insurance premiums can lead to late fees and penalties. Set alerts on your phone so that you never miss another payment.

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Pay credit card dues on time

Not paying credit card dues on time or paying the minimum balance can land you in a debt trap. Always pay credit card dues in full before the due date.

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Get adequate insurance

Even before you invest you should get adequate health and life insurance so that your risks are covered.

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Set financial goals for the future

Set future goals like buying a house, children’s education and retirement and figure out how much money you need for each so that you can plan for them.

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