rainy day funds are money that we put aside to use in times of unexpected work such as renovating your vehicle or paying for house maintenance. now hmm why exactly do we call it a ‘rainy day fund’ well cause just like you don’t know when is it gonna rain, you won’t be able to know when you’ll have to fund for those tasks or major life events.

usually, folks misunderstand an emergency fund with a rainy day fund. but as a matter of fact, they’re very different from each other. an emergency fund is the savings that you do for a huge happening you don’t know is gonna occur in future. let’s say saving up for a date with your crush or saving for an amazing (but expensive) dress that has just come on sale.

how much should you have in a rainy day fund?

to be blunt, you can have as many savings as you want. rainy day funds are usually the small ones so you don’t really have to worry about it. but to be on the safer side, you can put a small amount of money every month in your rainy-day piggy bank. and hey, if you think you’ve saved too much, you can stop putting money in the fund for one month and pamper yourself.

ideally, you can have anywhere around 1000 rs to 3000 rs to cure your rainy day blues. your rainy day fund doesn’t need to be as huge as your emergency fund. you can evaluate your needs by taking a look at your expense book. and at the end, you can add the money to your account accordingly.

what expenses would your rainy day fund cover?

as mentioned before. You can use the rainy day fund to cover small expenses like fixing your bike tires or anything else that would seek your wallet’s help when it’s entirely empty. some other expenses that you can cover with this fund are-

• Medical bills
• getting your house repaired
• Getting your car serviced
• spontaneous date with your crush
• Urgent cash for your family members

where should you keep the money for the fund?

you should always keep the money in the count that you can easily access such as your akudo account. so that you can just use the money whenever you wanna. however, if you feel you might need the money spontaneously and you’re a teen without a card, you can also keep the money in cash.

how many months should you save for a rainy day fund?

as we said earlier too, a rainy day fund budget depends on your way of living. If you’re a teen with high maintenance stuff and a car (or a demanding girlfriend) you’d have to separate a larger sum of money in the rainy day fund. ‍ or the other way is to take out a small sum of money every month. you can pause after 4-5 months if you haven’t used that money.

but if you’re single with a bicycle and let’s say good savings then you can take out a small sum of money for like 2 to 3 months.

what is right for me? Rainy day fund or an emergency fund?

if you take our opinion, you should be prepared to have both. if you’ve reached this part of the blog, you already know that rainy day funds and emergency funds are two different things.

someday you might need to spend small on an unpredictable task where you can use your rainy-day fund while on some days, you would need to spend huge and that’s when you take out your emergency fund. so in short, save for both the funds.

saving tips for a rainy day fund

we know it becomes very hard to save for these many funds. and we think we can help you here a little bit.

• start cooking in rather than ordering out (use that money in your rainy-day fund piggy bank)
• Start a side gig to prepare yourself for saving a little bit extra (have talent? Approach us and we’ll go for a coffee
• take out a small amount of money whenever you return from your nani’s house
• Do chores at your home and take money from your parents in return
• try refraining from splurging after you receive money
• Create an auto-deposit so you won’t have to think twice before saving the money.
• Use your akudo card to save some extra bucks while shopping/ordering or pretty much anywhere (oh and did we tell you? You get awesome rewards too

we heard you like things simple, so here you go pals. If you didn’t understand the parts above easily, this might help you in taking a glance at all things rainy days.

last few words:

you never really know when a spontaneous expenditure might strike you the best way is to be prepared for it like a pro. one thing that you should NEVER do is keep all the money in the same account. not only would it be really confusing but you’d also be penniless when the moment of using rainy day fund comes by.

so what have you planned? do you just wanna be a teenager or you wanna be a smart teenager? Let’s get set and save some money to fight emergency money situations like a pro.

so, first things first, after achieving your financial freedom, you need to take up the responsibility of setting financial goals. this also motivates a person to strive harder in their career to achieve these goals. the goals act as a trigger for you to do better and give you something to look forward to. once you are successful in achieving these goals, that feeling of accomplishment and peace is something else altogether. it is said that a human can never be satisfied. but we say, why should we be satisfied when we have the potential and power to do so much more.

before we begin the gyaan on setting financial goals, let us look at the mistakes adults and teenagers make when it comes to their personal finances.

common personal finance mistakes adults make

1. not having an insurance

this grave mistake is done by so many adults that it is scary. yes, we know you get medical insurance from the company you work at. but what about life insurance? as an adult it is your responsibility to ensure that your family is financially secure and can look after themselves. also, extra medical insurance for your family members will help with sky-rocketing medical bills.

2. failing to prioritise

another major mistake made when setting financial goals is not prioritizing expenses appropriately. it is of utmost importance to pay off debts with a higher rate of interest first. opting for medical and life insurance is much more important than purchasing a car. planning your retirement fund is high on the priority list as compared to your child’s future college fees. how? you or your child can easily apply for an education loan, but can’t go for a loan in your old age. hence, be reasonable and responsible when setting financial goals.

3. lack of emergency fund

not having an emergency fund set aside is a very bad example when setting financial goals. emergency funds act as a knight in shining armor in unexpected situations like damage to the house or accidents. the best example is the pandemic where the workforce across the world faced pay cuts and how thousands lost their jobs. in such a situation an emergency fund will help you and your family to sustain a comfortable life until things are back on track. pandemic has taught everyone this great lesson.

4. accounting for future inflation

with a heavily fluctuating economy, people make the mistake of not considering price hikes and inflation. we celebrate our salary increments, but we need to plan our future financial goals like savings and investments considering both our salaries and increased expenses. party hard with your increment and plan harder for the future.

common personal finance mistakes youngsters make

1. not making a budget

there are only three things that teens need to focus on, and they are budgeting, budgeting and budgeting (what up poooooooo reference!). so, guys, if you don’t budget, you will notice how you are always broke within the first 2 weeks of the month. budget your expenses, parties, aspirational purchases and any other things that you think will involve money. make it your life mantra to budget everything when hoping to achieve the set financial goals.

2. splurging

uh-huh, here is where we all get uncomfortable. splurging! the demon of all failed financial goals. you need to say goodbye to this evil friend of yours called impulsive purchases. you already get limited pocket money, why not budget it wisely and then splurge all you want on your shopping spree as per your plan. it might be difficult, but not impossible

3. owing money

there is absolutely no reason for youngsters like you to get into the habit of owing your friends or other people money. it puts you in a circle of debts which after a point gets difficult to manage. trust us when we say, your parents are your saviours. in case you are out of money for the month, talk to your parents and together you can figure out a way to earn some extra cash from them. don’t lose your vision of financial goals to things like debts.

4. no financial knowledge

with the world growing on steroids (just a figure of speech guys), the teens are getting more and more exposed to financial knowledge. even after the easy accessibility of information, many teens don’t bother about gaining financial knowledge. it’s high time you make use of the technology and learn about future investments, taxes, debts and everything finance. if not, ask your parents or other adults about these things and educate yourself on setting financial goals for your future or even now if possible.

now let’s talk about short-term goals which are important and equally achievable. by accounting for short-term goals it becomes easier to focus on long-term financial goals and fulfil both of them.

short-term financial goals for adults

1. emergency funds

as an adult, you have to start adulting. understand the importance of having an emergency fund and saving some amount of your income into that fund. this fund will help you and your family in unprecedented situations like unemployment, late salary, etc. you won’t have to opt for loans or any other kind of debts unnecessarily. hence, starting an emergency fund should be on the top of your list of short-term goals when setting financial goals. you can start your emergency fund by setting aside 5-10% of your income depending on your other expenses. you can also sell off unnecessary things that you own and don’t use. for example, an old mobile phone or laptop, clothes, and books.

2. pay off credit card bills

another important short-term financial goal for adults is to clear all their credit card bills. there are two major reasons for this – high-interest rates and credit scores. the vicious circle of credit card bills slows you down from achieving your financial goals. the later you pay the bill, the higher the amount you pay and then it’s a never-ending series. hence, pay off your credit bills on time which will also affect your credit score positively for the future.

3. payments for rent, insurance or loans

your short-term financial goals cannot be achieved if you don’t account for rent and other monthly expenses like loan EMI and electricity bill. you also need to set aside a certain amount for insurance like medical or life insurance. these things should definitely be your short-term goals as they contribute towards a major part of your survival and lifestyle. aim to achieve your short-term financial goals as soon as you can so you need not worry about your and your family’s lifestyle.

short-term personal finance goals for teens

1. savings account

so, guys, now that you are in the prime of your teenage life, start looking into your short-term financial goals and take them seriously. you can start off small by asking your parents to open up a custodial savings account for you in a bank with best interest rates. use that account for your savings and transactions for any purpose and at the same time, keep earning interest on it. once you’re 18, you can have the full custody of that account and take your first step into financial freedom as an adult. start preparing for that sweet taste of financial freedom now itself.

2. college scholarships

education fees and loans are not a joke. your parents try to provide the best possible education for you and strive to help you fulfill your dreams. but you need to start taking responsibility for your dreams and account for the expenses involved in it. so, in order to achieve your dreams, play your part and research for college scholarships that will load off the financial burden on you and your parents. don’t hold back when reaching out to the stars when you have amazing options at your disposal. this short-term financial goal will bring you closer to your dreams.

3. research on early investments

investments have no age. you are never too young to start investing as long as you have a custodial account. the younger you start the sooner you can relish in the joys of profits you gain. start looking into investments like SIP, cryptocurrency, mutual funds, FD. etc. you don’t have to invest thousands of rupees. with so many investment platforms like Groww, you can start investing money as low as 100 bucks. learn more about investments with akudo.

the gangsta when it comes to financial goals and planning are the long-term financial goals. these goals determine the kind of future you see for yourself. these goals also shape up your financial and life planning in order to achieve them.

long term financial goals for adults

1. retirement fund

again, this cannot be stressed enough, but planning for your retirement is a gift to yourself in your old age. your retirement days are for you to enjoy them with your family and friends. you don’t want to be running around earning money for basic necessities. it is much more important than saving money for your child’s future education. so always and always prioritize your retirement plan when setting financial goals and research well on the best plans for yourself.

2. purchasing a house

buying a house is very important for Indian families. owning a house is a sign of success and stability. it provides security to families and is a great investment for a safe future. hence purchasing a house should be one of your top long-term financial goals to avoid the burden of rent throughout your life. research on the best real-estate and housing loan options to live your best life.

3. child’s education

saving for your child’s education may not be the only option for their fees, but it is one of the most important financial goals when it comes to Indian families. hence, start including this when setting your financial goals and look for the best options like education loan, fixed deposits or any other type of investment.

long term financial goals for teens

1. travel

the best way to spend your money is on experiences instead of materialistic items. as you grow old, you’ll realize the importance of exploring the world and yourself at the same time. hence travel should be one of your long-term financial goals where you can save up for trips and travel plans. this is the best kind of investment you can do for yourself.

2. budgeting

you might be tired of hearing it over and over again, but that is what makes it important. budgeting is not a one or two-month process, it is a life time process that keeps evolving as you evolve. hence, budgeting is your one financial goal that you should be consistent with throughout your life. there are many budgeting apps that will make your life easier.

3. financial independence

as you grow, you need to and will understand the happiness of financial freedom and independence. like Monica says “welcome to the real world, it sucks, but you’re gonna love it” that’s exactly the case when you become financially independent. it may seem scary initially, but as you come across experiences, it will keep getting better and easier comparatively. you can’t always expect your parents to support you right into adulthood. so, guys pull up your socks and prepare for your future financial independence because it’s yours and yours only.

finances can be tough, but not tough enough. if you set all your priorities straight, your goals won’t be fuzzy anymore. so, take your time and write down about how you see yourself in the future. people, get yourself together and lay down your financial goals for a better and clearer future.

hope you loved this blog. you might also like:

• top budget preparing tips for parents and teenagers
• top 10 best self-investment ideas for genzs and millennials
• what is an emergency fund? why it is important to have?
• top 13 personal finance book for a better financial future
• 50 30 20 budget rule – the golden rule of budgeting

saving and all is fine but tell us, is that money gonna be of any use if you haven’t gained any skill or utilised it in a better manner? the only answer is NO! so first, it’s super important that we understand the meaning of the word ‘self-investment’. anything that is helping you beautify yourself, grow or make you happy can have the title of best self investment. cause at the end, it’s you who you’re spending the bucks on

so without wasting any more time, let’s take a sneak peek at the best self investment ideas-

1. pay your debts

if you are trynna explore how to invest in yourself, we say the first thing is you pay off all the people you owe. If any. you can only look for more ways to pamper yourself once you’re free from all the debts.

have any friends you owe? or the rent, you can start with slipping the money in their pockets so that you get to do the things you love with the rest of the bucks. start off by making a list of the dues you gotta clear and focus on ticking people off of the list before you start pampering yourself.

2. learn a new skill

the best investment in yourself is to learn a new skill or well, maybe just strengthen the skill you already have. Crazy about art classes, or wanna learn a bit more about crypto? why not take classes on it to become a pro.

It’s really important for y’all to understand that when you are spending your bucks to learn something, you are actually spending those bucks to make more bucks. let’s say you are a social media enthusiast or a content creator. you took a course on how to handle your page and boom you would have a ton of followers before you even know. so my friends, join a workshop that you’re really passionate about. Right away.

3. begin with your side hustle

remember the travel blogging you always wanted to do? or the bakery shop you wanted to open online? now is the time to get started with it. there is literally no better way to invest in yourself than investing in your business. earning some extra dime while you are studying or working full time is always gonna be a boon. mo’ money, no’ problems!

a side hustle is mostly something that you do for your passion. and there’s nothing better if your passion turns into your profession, no? how cool would it be to make your art, sell it online while living your dreams. looking for the best self investments? well, here you go

4. pamper yo’ self folks

we all are different from each other and of course, so are our definition for best self investments. while some of you might be really passionate about side hustle or learning a new skill, some of us just wanna look our best and there’s nothing wrong with it. In fact, we all should save a small part to invest in our physical as well as mental health.

you can either take a gym membership, hit the spa to relax your body on a weekend. and wait, how can we forget about salons? you can also just visit a parlour to get a nice haircut, pamper your skin and bring out the most beautiful version of yourself

5. how bout starting a retirement fund?

someone said the best way to predict your future is to write it yourself and well, we just can’t get it off of our mind. one of the best self investment ideas is to invest in your future. and by that, we simply mean you can check out different projects to invest and start putting your money in it.

you can either take a small amount of money when you receive your salary or create a fixed deposit. if you’re looking for something which ensures risk but rewards, you can also consider using that money in a mutual fund. all you gotta do is search for a stable project and start investing.

6. Invest in your relationships

when we said you don’t have to invest in your crush, we weren’t really serious about it. Geez, hell no, we don’t wanna keep you away from making your guy/girl happy but hey, wait a second relationships go beyond just crush and lovers, right? if you ask me, how to invest in yourself, the answer is when you bring a wide smile to the face of your loved ones.

surprise your parents with a new pair of earbuds or well, cookies might do too. Send gifts to your friends and a blast of hearts to your partners. we’re pretty sure you are well capable of deciding the gift yourself

7. Read, watch and listen

are you someone who’s gaga over books? go buy your favourite books, read a lot and feed your brain. you can also consider taking membership to the library and keep visiting to check out the new collection. and oh, we all love movies, don’t we? Doesn’t really matter if you are a movie fanatic or not, there’s always a movie that we all love. book your tickets for the most recent movies and buy some popcorn to enjoy with it

and lastly, the food to our soul is music. Spending the bucks on a good music system is a dream. so take any music channel membership and check out all the songs. Get a device if you are into playing. yeah so, you were asking around for the best self investments? Can it be anything better than the movies, books and music? We say no.

8. Get a pet

if this didn’t get a wide smile on your face, we wonder what will. there’s no better way to use your money than to become a hooman. those lil paws, wagging tails and the cutesy eyes have us all heart warmed oh wait, in case you’re wondering, yeah we are an avid dog lover

but hey, you can get any pet of your choice and start spending some time with them. this becomes a necessity if you are a bachelor staying alone. what’s better than cuddling with a furry friend and getting loved as soon as you come back home. wondering how to invest in yourself? well, get a furry friend.

9. travel wherever you want

there’s honestly no better answer to how to invest in yourself than this. Imagine travelling the world, creating content and the best part of it all, you are getting paid to do so. you can either start your own blogging channel where you are putting deets of the underrated places or you can collaborate with a company.

several companies are on a constant lookout for artsy travellers so if you have good writing/photography skills, you might wanna consider freelancing. there are many homestays that are also looking for volunteers so if you’re up for community management, give it a shot.

10. some more things you can do with your money

We’re sure you can think of a thousand things when we say how to invest in yourself. Cause who wouldn’t like splashing themselves with love? Or well, pastries. Same thing. Here are some more things that you can do-

• grow your savings by trading
• join tuition or get a mentor
• replace the old items with new ones
• get your dream gadget
• donate the money to the needy
• hang out with your friends
• give a makeover to your wardrobe

honestly, there are many many answers for how to invest in yourself but the special hack over here is, you don’t have to splurge on things you are never gonna use. these were some of the best self investment ideas that we had.

if you’re a teen and shopping is your most fav thing in the entire world, don’t worry we’ve got you covered. apply for an akudo card & get crazy cashback and rewards on your bills. so how do y’all feel about buying it now and paying it later?

hope you loved this blog. you might also like:

• 7 superb tips on how to save money for future
• what is a neobank? why it is the future of banking in India?
• how to become financially independent (for teenagers)
• what is an emergency fund? why it is important to have?
• top 10 fun money management activities for parents and kids
• top 13 personal finance book for a better financial future

as much as we should enjoy the prime of our lives, it’s also important that we throw some spotlight on our future. (who doesn’t wanna retire at 35, right?) so without any further ado, let’s hop in the rollercoaster and take a sneak peek at the crazy ride of savings.

7 best money-saving tips for the future

• start tracking your expenses
• root for savings from your budget
• set your priorities
• look for ways to cut down on your spending
• opt for automatic savings
• set savings goals
• get a side gig

1. start tracking your expenses

you can only work on your weaknesses if you’re aware of what they actually are. similarly, in case you wanna start saving, you have to know where are you spending em’ bucks. for starters, you can create a note on your phone and write down all your monthly expenses. you can also choose a free expense tracker online. this is a pro tip on how to save money for the future, start it as soon as possible.

2. root for savings from your budget

now that you know what does your monthly spending look like, you can finally start rooting for savings. make sure to draw a line between your wants and needs (easier said than done, we know pal. We know) try not splurging on things you can easily survive without. and at the end of every month, take some money out and put it in the savings fund.

3. set your priorities

once you set your priorities, you know what to spend on and what you can easily skip. setting priorities is a quick answer to how to save money for the future. if paying tuition bills to top your list of monthly spending, you’re most likely going to escape buying a new PSP or lipstick.

now just imagine. you haven’t set a priority list and splurged on shopping while you had to pay for college bills. see, money mismanaged. so fellas, talking about your crush or expense, you always need to set the priority to get things done.

4. look for ways to cut down on your spending

whether we talk about ordering food more often or maybe just buying clothes you’re never gonna wear (that’s a thing, right?) it’s important to have a reality check. we’re teens and we’re okay being young dumb and broke but we’d certainly not wanna sing this song in our 40’s. one of the greatest hacks on how to save money for the future is to cut down on your spending.

try filling your cart with budget-friendly products instead of a huge a*s expensive list. try having products in bulk rather than getting them every time. cancel out any subscription and memberships that you don’t use (your gym one, for instance. )

5. opt for automatic savings

accept it or not when it’s up to you, you’re never gonna save the money. and that’s exactly why auto deposits were created. now whenever you wanna save the bucks, you can do it right after the money gets deposited in your bank account.

you can set a limit that has to stay in your account. if the limit exceeds it, the money would be sent to the fixed deposit automatically. some say this is practically the smartest way if you’re asking how to save money for the future.

6. set savings goals

When you set a savings goal, you try to achieve it. start a simple goal, let’s say you wanna save money for your future. now, why do you wanna save it? do a smart distribution of the money accordingly. if you wanna retire at 30, you’ll have to try a bit hard while if you wanna retire a bit late, you can still save but in a laid back manner.

there are two sorts of savings- 1. Short term savings and 2. Long term savings. while short term savings can be for the near future, long term savings will ensure a chill vacation in the Bahamas when you’re 40.

7. get a side gig

if you have tried everything and feel savings just isn’t gonna happen with the money you make, it’s time to get a side gig. whether you’re a student or an adult fighting through 9 to 5, you can get a freelancing gig easily- online. all you gotta do is find a project that you can accomplish, create some samples and send it out.

now that you’ll have a freelancing gig, you can use a small amount to treat yourself and create an auto-deposit for the rest of the amount that you are getting. oh and with that being said, we’re constantly lookin’ out for freelancers. think you have talent? let’s have a chat.

summing it up,

these are some of the tips on how to save money for the future. it’s very hard to resist a nice dress or ordering your comfy food from outside. but saving and investing will always help you prepare for your future.

if you’re a teen, you gotta take the charge. get yourself an akudo card. not only would you be able to handle your own expenses, but you would also be getting some of the most mind-blowing offers and of course rewards. so bros, what are y’all waiting for? Go take a step towards financial independence today and savings would follow.

hope you loved this blog. you might also like:

• top budget preparing tips for parents and teenagers
• what is a neobank? why it is the future of banking in India?
• how to become financially independent (for teenagers)
• NSE vs BSE – definition and major differences
• top 10 fun money management activities for parents and kids

mo’ money sure is mo fun but along with it comes splurging issues and that, my friend. that’s exactly what you gotta work on. little activities can make you teach your kids a lot. so without wasting any time further, let’s hop on the money management train cause it’s gonna be one hell of a ride

10 fun money management activities you gotta try out right away with kids

• who saves the most?
• pizza slice budget
• truth, dare & situation
• tell them about your investment profits
• go shopping with them
• play monetary games like monopoly
• watch finance-related movies with teens
• tell em’ a story or maybe just an experience
• do some time travel
• get them an akudo card

1. who saves the most?

honestly, sibling jealousy has the power to make your little ones do anything. so the next time, you might as well wanna use it to throw a fun game. tell your lil ones you’re throwing a savings competition. give them some pocket money and whoever saves the most by the end of 6 months will have extra money or maybe a lil treat.

why compare your kid to Sharma ji ka beta when you can compare them to your own kid this is not just a fun money management activity for kids but will also teach a thing or two about the importance of money.

2. pizza slice budget

a cool parent always knows how to teach their kids out of anything and honestly, we’re just trying to make you cool. having a pizza night? your kids are probably already very happy which makes it the best time to make them understand some budgeting.

when the pizza arrives, you can name it as your income. now separate the slices and represent them as your expenses. give the slice of ‘savings’ to them, telling them it’s who you’re earning for.

3. truth, dare & situation

no matter which fun money activity for kids do you host, it’s not gonna be as lit as the classic truth, dare and situation. you can play truth asking their kid where did they spend the money that they received from nani or well, if they sneaked out some bucks from your wallet.

you can also dare them to save their money for 1 month and if they cheat, you’ll be calling dibs on the money they’re gonna get from the relatives. but honestly, now comes the best part, the situation bit. here you can put your kids in the imagination mode and check their management skills. ask them if they had 1000 becks, how would they use them.

4. tell them about your investment profits

when you give your kid money, you help them feel rich temporarily. When you give your kids financial knowledge, you’re telling them how to cut their way into the world of the rich. the next time you have any profit from your investment, make sure to tell your kid about it. what’s a more fun money management activity than mutual funds and crypto?

if you have a kid who is on the verge of their teens, you can also take their opinions on which project you can invest. kids absolutely love when parents think that they have some idea of finance. Two days later, you’ll find your kid studying about something new, advising you where to invest.

5. go shopping with them

although one might not realise it but it’s only through the daily activities that we influence our little ones to manage money. if you wanna literate them about smart buying, you MUST take your kids even when you’re going shopping. the art of haggling, choosing affordable products over the expensive ones and well, getting the perfect sale offers come from here.

make sure to keep on teaching your kids about the brands you’re choosing and what’s the reason for you choosing them. the next time you go shopping, the kids would already know what to choose.

6. play monetary games like monopoly

playing monopoly is one of the most fun money managing activity for kids. this way, you’re getting to teach them about money while spending some quality time together. monopoly is actually a pretty smart option. along with managing the bucks, the kids are also getting a hang of where should they invest to make their money rise.

so from now on, whenever you want to do something fun, just take out the monopoly board. or if you wanna have some quality time with your little ones over the weekend, just get the snacks ready.

7. watch finance-related movies with teens

if you ask us, there’s nothing better than a movie night, especially when you’re getting to teach your kids about money. of course since Money Heist or Squid game is not something you would wanna show your teens. so you can just look for kid-friendly movies that also talk about money and how to utilise them properly.

however, make sure to not be so assertive. Let the kids enjoy the movie first. Keep on asking what would have they done if they were in this situation. Kids love the world of imagination so be prepared to hear some of the most amazing answers

8. tell em’ a story or maybe just an experience

storytelling is also a very fun money managing activity for kids and don’t let anyone tell you otherwise. Have an interesting story where you were stuck in a monetary situation and there was no way out? Or well, the time when you almost hit a treasure box.

kids learn the best when you tell the experience to them you can also just read out Aladdin story and ask them what would have they wished for if Alladin came to them. oh and never forget to fit in the lesson everywhere.

9. do some time travel

your kids would understand the wealth effect the most when you follow up with the social media trend. make them write, draw or imagine where do they see themselves in the next 10 years. What is their dream house like, what do they do as their profession?

and now coming to the most important question, ask them about the price of the resources. like, come on we all know things like gas, petrol are gonna be super expensive, might as well be prepared for this. also make your kid understand why is it important to save resources along with the money.

10. get them an akudo card

kids would only be able to understand the importance of money once they get to handle their own expenses. you can get an akudo card made for your kids, this prepaid card will allow your kids to shop on their own, giving them a sense of independence.

plus, how cool is that? a kid having a card. woah. and wait, that’s not it. We’ll also give the best deals so that your little ones compare before shopping and try to save as much as they can.

some last wise words of wisdom,

these fun money managing activities for kids are the best way to make them walk on the path of financial freedom. we’re all in to break the traditional stereotype of taking finance all seriously.

so these were some of the activities that you can try out with your young buds to learn about money managing in the most amazing way possible. Try it all out and let us know which one worked out the best for y’all folks.

hope you loved this blog. you might also like:

• 7 superb tips on how to save money for future
• what is a neobank? why it is the future of banking in India?
• how to become financially independent (for teenagers)
• NSE vs BSE – definition and major differences
• 50 30 20 budget rule – the golden rule of budgeting

but when it comes to family life, creating a budget for household expenses is a different ball game altogether. you are responsible for managing a budget for people who are dependent on you like your children, partner, parents, etc. here we will tackle how to budget monthly expenses for your family and with your family. a joint effort makes it easier to consider things that one person might forget. so, let’s get started.

parents, first let us look at how you can efficiently prepare a budget considering your kids’ needs, their expenses and the regular household expenses.

top budget preparing tips for parents in 2022

• determine your total family income
• prioritize your financial goal
• magnify into your expenses
• distribute your income
• breakdown your savings
• use budgeting apps

1. determine your total family income

first and foremost, calculate the total family income after deducting the potential taxes. you may have multiple income sources like salary, real estate, interests on investments, etc. also consider your assets that can be used in case of emergencies. let’s not forget the debts if you have any. once you have all these things cleared, it will help you to determine the goals that need to be achieved. these goals can be long-term or short-term. long-term goals like your child’s education, college fees and more. short-term goals include purchasing a new home appliance, splurging on a shopping spree or a close relative’s wedding. we can’t overlook a big fat Indian wedding now, can we? it will also help you understand how to prepare a budget to fill up financial gaps, if any, proactively.

2. prioritize your financial goal

gone are the days when an individual was happy with the same old 9-5 job with the same salary for years. now everyone wants to accelerate through their careers with flying colours of rewards and recognition. everyone is into investments and the second source of income to provide the best for their families and kids’ futures. so, it is advised to set a financial goal for yourself that will motivate you to, as a family, to strive for it and will help you prepare a budget for those goals. your financial goals could be paying all your debts, buying your own house, retirement etc. with so many options on investments like SIP, stocks, cryptocurrency, etc, it is time for you to start planning now itself. at akudo, we can help you research the best investment options for a better future.

3. magnify into your expenses

many times we don’t realize how and where we are spending our money on a monthly basis. with so many small and regular expenses, it sometimes gets difficult to keep a track of such expenditures. this also causes a hit on the monthly budget. so, you need to start looking closely into your expenses. but the question still remains on how to prepare a budget considering smaller and spontaneous expenses. well, in that case, you can set aside a certain amount for miscellaneous expenditure and at the end of the month check whether it was used or not.

p.s. party hard if you haven’t spent all your miscellaneous budget. there needs to be a time to reward yourself :p

4. distribute your income

the biggest mistake we make is that we don’t take into account the priority of our expenses. we splurge without thinking or we don’t budget our income appropriately. so as a family, the best way to cover all expenses which include necessities and luxury is to break down your income into sections. divide your income primarily into three categories – bills & necessities, savings & debts and non-essentials. decide on the breakdown percentage as per your household needs and future goals. this is how you prepare a budget that is sustainable. for newbies, below is the best way to divide your income and expenses to create a budget. it’s not rocket science.

• 50% of your income should be dedicated to regular bills and essentials like groceries, electricity bills, petrol, school fees, etc.
• 30% on non-essentials and luxuries like a vacation, shopping spree, partying, etc.
• 20% should go into savings, investments and monthly debts

however, please ensure that you stick to the breakdown that you have created for yourself and your family.

5. breakdown your savings

now let us talk about the best and most difficult part of making a budget. savings! however old you may be and in whatever stage of life you are in, you need to set aside a certain amount of income towards savings. these savings need to further be broken down into long-term savings, investments and emergency fund savings. long-term savings will be dedicated towards retirement plans, life insurance, college funds, your children’s wedding, etc. emergency funds will be directed towards medical emergencies or any other unpredictable mishaps or expenses. you can never know what the future holds, so make sure you are at least prepared to face it.

6. use budgeting apps

we can’t stress enough on this, but when you have a whole family budget to make, using budgeting makes your life easier. you can easily keep track of all your expenses, savings and unnecessary purchases that were made. the budgeting apps will also help you reach your financial goals and help you in ways to achieve these goals. how to prepare a budget just got easier. you can use budgeting apps like mTrakr to track all your finances.

now as a family, it is not only the parents’ job to prepare a budget and live by it. as a part of the family, it is the children’s responsibility to also be responsible when it comes to finances.

we are here to tell you ways in which you can help your family prepare a budget and set your own financial goals for the future.

6 budget preparing tips for kids and teenagers

• help in preparing a budget
• start by setting goals
• ask for a savings account
• use budgeting apps
• track unnecessary expenses
• take into account upcoming expenses

1. help in preparing a budget

actively involve yourself in preparing the household budget with your parents or other family members. take ownership and voice your opinions and learn about finances from them. this will not only make you financially independent but will also prepare you for future financial responsibilities. it will also enable your parents to see you as a responsible person rather than an immature kid with no care in the world. you can learn how to prepare a budget with us.

2. start by setting goals

like your parents, you need to start determining your saving goals with the pocket money that you receive. the first step in responsible finance is to save money, even if it’s a nominal amount. if you want to buy an Xbox, start saving a certain amount every month without fail and celebrate the happiness of buying something on your own. thus, it is very important that you set your goals very clearly and strive to achieve them by creating a budget and goals. that Xbox will be yours.

3. ask for a savings account

ask your parents to open up joint savings account with you so you can earn interest on your savings. you can also open a neo bank account with akudo and earn interest on the same. as a minor, you can operate on custodial bank accounts and contribute towards your savings as per your budgeting plans. create a budget of saving at least some per cent of your pocket money or any other income in your bank account. start early, start wise friends.

4. use budgeting apps

the best way to track budgets and monitor expenses as a teenager is to use budgeting apps. make responsible choices and reach closer to your goals with these apps with this tip on how to prepare a budget. with budgeting made easier, you can now focus on saving and starting a side hustle of your own. you can also start looking at multiple investment options and secure your future. heavy, right? but don’t worry, it’s easy peasy.

5. track unnecessary expenses

as a young soul, splurging is like breathing, but as you step into a responsible stage of life, you can start tracking your unnecessary expenses. to follow the budget that you prepared, you need to look for cuts in your expenses that will help you achieve your goals. this unnecessary expense could be ordering in food when there is food at home, taking a cab or rickshaw when you can simply walk the distance or simple impulse buying.

6. take into account upcoming expenses

to maintain your prepared budget, you need to learn how to budget upcoming expenses. if you have any birthdays coming up, a party or any trips, etc. take into account the anticipated expense that it will incur. don’t wait till it happens and then budget it. if you budget it beforehand, you will be prepared for how much you can save and spend accordingly. better safe than sorry, right?

so, families and their kids, are you ready to take on the month with these budgeting tips? if yes, go ahead and make us proud!

hope you loved this blog. you might also like:

• 7 superb tips on how to save money for future
• what is a neobank? why it is the future of banking in India?
• how to become financially independent (for teenagers)
• NSE vs BSE – definition and major differences
• top 10 fun money management activities for parents and kids
• 50 30 20 budget rule – the golden rule of budgeting

but before we dive into the magical world of budgeting, you need to understand the importance of budgeting and why you need it so early in life.

why do you need a budget?

these days with several budgeting apps at our disposal, creating a budget has become simpler. however, till we don’t understand our budgeting goal, these apps are of no use. hence, let us get our heads cleared by first decoding the reason for creating a budget for ourselves.

1. to monitor expenses

what’s the point of creating a budget if we are not able to control our excessive expenses that can easily be avoided? it does not matter if we use the 50-30-20 budget template or any other budgeting hack if we don’t monitor our expenses. despite having a budget set aside for wants, one needs to look into expenses that are unnecessary and can be ditched altogether. hence it is very important to monitor your expenses and to make changes in your budget accordingly.

2. to divide income

the 50-30-20 budget template may not work for everyone to the T, but it gives you a rough idea of how you can divide your income. as per your financial goals, creating a budget will help you understand the allocation of your income based on your personal financial goals or your family needs. you can also change the division of your income as your goals change for a particular period. hence creating a budget helps in making your income flexible and resourceful for different goals.

3. to achieve financial goals

there are only three things that people need to know in order to achieve their financial goals and they are budgeting, budgeting and budgeting. so, guys, if you don’t budget, say goodbye to achieving your financial goals on time. splurge all you want, but budget your expenses, parties, aspirational purchases and any other things that you think will involve money. make it your life mantra to budget everything when hopping on to the 50-30-20 budget template to achieve the set financial goals.

benefits of budgeting

now that we have convinced you to budget responsibly, let’s push you further and speed up the process by discussing the benefits of budgeting. so, let’s get down to it

1. savings

being a young person with a consistent income, it is natural to have wants that may not be necessary. although, as we grow, we understand that it is impossible to always get everything the heart demands. thus, by having a specified amount at our disposal, the shopaholic diva inside us will learn to practice budgeting and saving. budgeting to avoid careless expenditure and savings for our expensive shopping sprees. we will be able to allocate a stipulated amount towards our savings kitty. the amount could be nominal, but the practice of beginning to save is what is important.

2. scope for investments

investments are the buzz these days with people investing in SIPs, cryptocurrency, real estate, etc. with so many investment options and easier accessibility, budgeting provides a scope for you to invest generously. research all about investments with akudo. with proper budgeting and income distribution, you can take into account investment opportunities and plan your whole budget around your investment plans. this will help you set aside a certain amount for various investments and achieve your financial goal.

3. long-term financial planning

with all your income budgeted appropriately, you have everything mapped out monetarily. now it will become easy for you to set some long-term financial goals and plan it around your annual income. you can also set a deadline for yourself to achieve the goal, be it 5 years or 10 years. your long-term financial planning can include buying a house, a car, getting married or opening up your own start-up.

the 50 30 20 budget matrix

the beauty of the 50-30-20 budget template is its simplicity. it helps you categorize your income in 3 sections after-tax deduction – needs, wants and savings & debts. this budgeting rule ensures sustainable and effective income budgeting. so, let’s break it down further and see how it is categorized.

50% of your income is allocated towards your needs. needs include house bills like electricity, water, gas etc, groceries, school fees and other mandatory expenses.

30% of your income goes towards your personal wants that including shopping, partying, entertainment, travel, etc.

20% of your income is directed towards your savings, retirement funds, repayment of loans and any other long-term investments.

after your 50-30-20 budget calculation, you are sorted with your income distribution. now you can easily track and monitor your expenses throughout the month. at the end of the month, you can determine how much amount of income each category requires exactly. if there is extra money left, you can carry it forward to the next month if you have any upcoming extra expenses or you can simply add it to your savings fund. savings can never be enough :p

now let’s try to apply this rule to a regular employee’s income and see how it works out.

so, our guy’s name is Arjun who works at an IT company. his salary is INR 9 lacs per annum. this means that every month, after various deductions like provident fund, taxes, professional tax, etc. his in-hand salary is close to INR 60,000.

now Arjun’s next step is to divide INR 60,000 as per the 50-30-20 budget template, which means:

INR 30,000 for his needs like bills, groceries, rent, etc.

INR 18,000 for his wants like travel, leisure, birthday party, etc.

INR 12,000 for his savings, investments and education loan repayment.

these numbers can change basis various factors like:

– salary increment

increase in salary during quarterly or annual salary revision.

– extra savings from the previous month

carrying forward savings from the previous month which will increase the amount of savings for the current month.

– upcoming extra expense

if Arjun has a friend’s wedding to attend or if he needs extra money to plan his birthday bash, the numbers might go crazy. but with this rule, he can survive it.

– bonus salary

this “bin mausam ki baarish” is what every employee like Arjun strives for.

– increase in investment plan

with fluctuating crypto and stock prices, Arjun might want to invest a little extra during the dip.

needs and wants differ from person to person. but what we can help you best with are the investment plans and savings plans. below are some of the best investment options that you can explore.

1. set up an emergency fund

one can never be ready for any unexpected situation. set up a separate emergency and medical fund in the 20% category. it could start off from a nominal amount and increase from thereon. however, ensure that this is separate from your savings.

2. contribute to retirement plans

again, this cannot be stressed enough, but planning for your retirement is a gift to yourself in your old age. your retirement days are for you to enjoy with your family and friends. you don’t want to be running around earning money for basic necessities.

3. life insurance

yes, we know you get medical insurance from the company you work at. but what about life insurance? as an adult, it is your responsibility to ensure that your family is financially secure and can look after themselves.

4. mutual funds

investing in mutual funds through sip is a great option as it does not demand a huge amount of investment in one go. you can enjoy the magic of compounding and reap the benefits by holding it for the long term.

5. cryptocurrency

well, this is the new eye candy in town. with several crypto investment apps like Coinswitch Kuber, CoinDCX, WazirX, etc. cryptocurrency has become accessible to all. but study the crypto market and regulations before leaping into it.

6. stocks

before dipping your toe into the stock market world, research the companies you want to invest into. understand the economy and the past histories of the shares. it is a risky game, but the gains are worth it if played safely.

7. investing in business ideas

giving an idea a boost through your investment could reap amazing returns. however, you need to understand the whole business model to avoid scams and unprepared short-term plans.

so, guys, now that we have the rule in place, it’s time to get your income in place. hit it with your best shot.

hope you loved this blog. you might also like:

• top budget preparing tips for parents and teenagers
• what is a neobank? why it is the future of banking in India?
• how to become financially independent (for teenagers)
• NSE vs BSE – definition and major differences
• top 10 fun money management activities for parents and kids

with growing exposure to stocks, investments, cryptocurrency, etc., you are surely super confused on where to begin your investment plan from. so, we‘ve broken it down for you. begin by understanding the process of different types of investments and then jump into splashing your money on their investment platforms.

so, let’s answer the most common question of “where should I invest the money as a teenager?”

you can start investing as teen money on various platforms, however, only under the guidance of an adult – be it your parents or your legal guardian. to transact investment money, you need to first open a custodial account with your guardian till the age of 18.

5 ways to invest as a teenager

• mutual funds
• cryptocurrency
• savings account
• stocks
• investing in business ideas

check out how akudo can help you open a custodial account. once that is done, here are top investment options for a teenager and student to go wild with:

1. mutual funds

investing in mutual funds through SIP is a great option for youngsters like us as it does not demand a huge amount of investment in one go. you can invest a nominal amount on a weekly, monthly or yearly basis at your convenience. enjoy the magic of compounding and reap the benefits by holding it for the long term.

2. cryptocurrency

well, this is the new eye-candy in town for the youth. this investment opportunity spread like wildfire over the past few years. with several crypto investment apps like Coinswitch Kuber, CoinDCX, WazirX, etc. cryptocurrency has become accessible to all. but study the crypto market and regulations before leaping into it.

3. savings account

the catch here is that as a teenager, you cannot have your own independent savings account. so as mentioned above, catch hold of your parents or guardians and open up an account under their guardianship. You can then start your own neobank account with akudo to learn, earn, spend and invest. simultaneously you earn interest on the amount in the account and once you’re 18, operate it without any dependency.

4. stocks

before dipping your toe into the stock market world, research the companies you want to invest into. understand the economy and the past histories of the shares. it is a risky game, but hello, the gains are worth it if played safely. get yourself an adult who is an old player of the game and learn the right tricks.

5. investing in business ideas

giving an idea a boost through your investment could reap amazing returns. however, you need to be careful of scams and short-term plans. understand the whole business model by having an expert adult look into it and guide you.

Best apps for saving and investing money as a teenager

now that we know the types of investments students and teens can look into, you should be aware of the efficient platforms to learn and invest on. however, don’t forget, you still need an account under an adult’s guidance.

1. akudo

it is very important to know about financial trends before making any big decision, right? With akudo, you can not only make your financial decisions with a prepaid debit card, but also be a teenager learning about investments and finances at the same time. the learning never ends at akudo.

2. Groww

Groww is an informative app to invest and sell in mutual funds and monitor the future of your investments. you can explore the best mutual funds scheme for yourself and future goals at one place.

3. Zerodha

Zerodha has proved to be one of the most popular investment apps in India because of its zero-brokerage fee. users can invest in multiple options from currencies to IPOs and mutual funds.

3. Coinswitch Kuber

the leading cryptocurrency investment app in India. buy, sell and withdraw coins from all over the world on this one app. to invest as a teen, you need to be updated with the latest dips and rise and act accordingly. you can do just that with Coinswitch Kuber.

4. Upstox

this app has everything from low brokerage costs to learning centres about different investment opportunities. this is your one-stop solution for everything on investments as a teenager.

faqs for investing and saving as a teenager

1. What are the top investing apps for teenagers?

some informative investing apps are Groww, Zerodha, Upstox for stocks & mutual funds and Coinswitch Kuber for crypto trading.

2. where should I invest my money as a teenager?

some of the best options for teenagers to invest in are mutual funds through SIP, stocks, savings accounts and crypto as per market trends.

3. what to invest in as a student?

students should prefer investing in mutual funds, SIP and also some in higher risk and higher returns products like cryptocurrency

4. can minor invest in a mutual fund?

minors in India can invest in mutual funds. however, they need to have a custodial bank account with an adult for transaction approvals until they are 18 years old.

5. how to earn money at the age of 16?

teenagers can earn money through various sources like part-time jobs, investments and pocket money. part-time jobs can include blogging, YouTube videos, freelancing or working at any eatery outlets and much more.

6. what are the best stock trading apps for minors,18 and young adults?

Some great stock trading apps for teens, minors and young adults are Zerodha, Upstox and 5paisa. these apps provide information on stocks and charge the lowest brokerage fees.

hope you loved this blog. you might also like:-

• top 11 ways to make money as teenagers in India in 2022
• learn how to save money as a student with 7 great tips
• beginner’s guide to manage money wisely in 5 simple steps
• best cryptocurrency wallets in India in 2022
• 15 personal finance tips you need for your future

The earlier you give financial literacy to your kids, the more knowledgeable they will be in handling money. It is a must for every teenager to learn how to budget and manage money wisely regardless of whether their parents gave it or they have earned it.

Many teenagers are excited to become college students. For them, it’s the freedom they are looking forward to in the future. When they handle their finances like deciding on getting loans, what to buy, and what not to buy, pay bills, and budget money to last until their next payday and others. If you failed to teach them, they might have a hard time dealing with it. Parents should make kids aware of personal finance and how to achieve financial freedom for a better future.

You can talk about financial topics in your daily conversations. Set some examples of how it will affect their future. Start with your experiences. Tell them your story on how you learnt to budget and started saving money. Open their eyes to the reality when it comes to money at the early stage.

6 useful ways to teach your kids budgeting

• the difference between needs and wants
• teach them the basics
• teach them how to manage their money effectively
• involve them in creating a budget for the family
• teach them how to delay gratification
• teach them the consequences of debt

1. the difference between needs and wants

when teaching your teenagers to make a budget and manage their money, you need to teach about their wants and needs. tell them that “needs” are necessary to live, like food, clothes, and shelter. And the other things you desire are the “wants.” Show them your budget as an example so they will have an idea that wants should be the least priority in terms of spending.

many times teenagers who were raised by wealthy parents usually cannot distinguish which to prioritize to buy. But once they become independent and start earning, they become budget-conscious. Teaching them about wants and needs before they live on their own will help them become responsible for budgeting their money.

suggested read: How Do Rich People Teach Their Kids About Money?

2. teach them the basics

teach them the difference between the actual and expected expenses, short and long-term expenses, and savings for long-term financial goals. They should know the basics of the post and pre-tax income as well as the basics of interest. If they are interested in investments, you can introduce the basics of the stock market.

Opening a bank account for them while they are still young is a good idea. Make sure that you are listed as their guardian so you can keep track of their spending transactions, fees, possible overdrafts, and other issues. you can also open an akudo account for your kids to save money and overview their expenses

Teach them how to balance a chequebook, how to keep track of their spending using the bank’s app or portal, and using a debit card. You can show them your’s as an example.

If you find your teenager good at managing his money, you can open a low-limit credit card for him. Teach him how to use it responsibly and pay the balance every month.

3. teach them how to manage their money effectively.

some kids do not divulge their monthly earnings. They keep it a secret even to their parents. Anyway, you are not after their money. It is important they should learn to manage their money wisely. The amount of money they have on hand may not be that big but do not just let them spend it.

help them to budget their money for the first few months. After that, you let them do it on their own. The vital categories they need to focus on include clothing, savings, leisure, and others.

If your teen learns to divide their money into different categories without asking you for additional allowance or borrowing money, it means that your kids are managing their money well. You can let them use some apps to help them in managing their money.

suggested read: top money management tips to prepare your teenager for the future

4. involve them in creating a budget for the family

let them join you when discussing the family budget. Do not expect them to understand everything instantly. Involving them when budgeting for the family can help them practice their skills in managing the money. Sit down with your kids and let them participate while making your monthly budgeting meeting.

Include in the discussion how much money comes in, the bills you need to pay, and other expenses such as education and medicines. Take note of the extra money you have for clothing, dining out and others.

Through this, your kids will see that every dollar in your budget is noted. They will also have an idea that if they spend in excess of what they can afford for a month can result in debts. This is the best way of presenting to them the result of having a bad financial habit.

Tell them your stories on how you plead to your parents to increase your allowance so you can pay all your dues for the month.

5. teach them how to delay gratification

One of the hardest things for teenagers to do when it comes to budgeting is to make them wait to purchase what they want. Not only teenagers but also adults may tend to buy impulsively. Parents should teach their teens to practice delayed gratification. This means that they should focus on buying what they need and delay purchasing what they want.

For example, a famous company of gadgets releases its latest model. Just because your kid’s classmates have them, you won’t also get it for your kids. Explain to them that they have to wait until they have enough money in excess to buy it. Since the gadget falls on want, let them share their money to purchase it.

suggested read: What to do if your child asks for something expensive?

6. teach them the consequences of debt

You might wonder why we have to include debt when teaching the kids to budget their money. This is to instil in them the importance of budgeting their money and saving some for their future needs as getting a loan is not a good idea. Even if your parents pay for your college education, things may change. Cite some examples of how getting into debt is not a good idea, and as much as possible, your kids should know this.

Sometimes, it is okay for your kids to make mistakes to show them that there will be consequences in every wrong decision they make. If they go over budget for one month, they need to understand that borrowing money is not the solution. The best thing to do is to cut back on their budget for the succeeding month. If their source of money is their allowance, do not increase their monthly allocation to pay their debt from the previous month. Let them learn to cut on their expenses in the incoming month to pay their debt.

Teaching your kids how to budget their money is not easy. Setting a good example to them can help them in understanding the significance of budgeting. Your experiences can enlighten them on reality. The above tips can help you teach your kids to become mature in dealing with money. If you think they are not yet ready to deal with money matters on their own do not force them. Be patient and eventually they will learn it.

hope you loved this blog. you might also like:

• what are the advantages of giving pocket money to kids?
• beginner’s guide to manage money wisely in 5 simple steps
• how to decide your kids pocket money?
• 6 tips for busy parents to teach their kids about money
• how to teach financial literacy to your kids in 2022?

Managing money isn’t really that easy, especially when you’re in the prime of your life where everything excites you. We could’ve written a book about “how to spend money wisely” but trust us, that’d just be a contradiction to the title cause we all know you would’ve never read it. so without any further ado, let’s get, set and go.

How to manage money wisely in 5 simple steps

• Set up a budget
• Save some bucks
• Invest, Invest & INVEST
• Go easy on your credit limit
• Treat yourself occasionally

1. Set up a budget

setting up a budget is the most important thing you gotta do. not only would you easily be able to avoid the embarrassment of asking for money from your friends but you’d also be able to treat yourself with a lil’ extra if you do the budgeting right.

now, how exactly do we set up a budget? hmm, let’s see. bring a pen & a paper and start writing…….nah, we’re just kidding. It’s not the 1920s anymore. you can create a budget in your mobile phone itself.

first off, we want you to throw the major emphasis on the money that’s coming in.

now write down all your expenses, living, food, and miscellaneous costs, pretty much everything so that you know where you are spending your money and how to manage your money wisely

make sure to track your expenses and create a balance. tracking your expenditure would help you stay within the budget line. it would also give you a fair idea of what your monthly budget looks like in the near future, eventually creating a wider scope of savings.

suggested read: top money management tips to prepare your teenager for the future

2. Save some bucks

Geez, these are the days you’re gonna live and we’re asking to compromise on that & save some penny. How dare we? Well, you’ll thank us when one fine day you’re walking down a street, you see a dress that you really want and you can get it. Or for any emergency moment, honestly.

Wondering how to manage money wisely for your future needs? Well, it’s really simple. You can start saving some money by something as small as cutting down the things you don’t require. Go open your fridge right now. We can bet that you’d find at least 5 things that haven’t been used for a long time. Stock up on only what you really require and that of course goes for everything, not just your groceries.

Secondly, you can start a savings account and deposit a small amount of money every month. Use it in emergency cases like when you have a really important date with bae and you wanna dine out in the best restaurant possible. Savings is just like dieting, you find it impossible at first but then the end results are nothing less than a big fat treat. :p

suggested read: learn how to save money as a student with 7 great tips

3. Invest, Invest & INVEST

This is rather a later part of the entire money management chapter. When you feel that you’ve finally saved enough it’s time for you to let that money grow. Not many of us are aware, but the money that sits idly in your bank can give surprising gains when invested correctly. But of course, for this, one must have proper knowledge of how to manage your investments and take care of your money.

The first rule of investing is to make sure that it’s safe. Although the investment world is a vast area to explore you can invest in cryptocurrency, stocks or mutual funds, we recommend you try out something as simple as Mutual Funds. But before you do that, make sure to give a proper read to the project you’re investing in. If possible, take an expert’s advice before you think to spend your savings on it.

suggested read: Advantages and Disadvantages of Cryptocurrency in 2022

4. Go easy on your credit limit

Credit cards have many benefits, we agree. But when you start exploiting the treat, you will have to go on a strict diet. Last month we did an experiment and found out that spending is doubled or well, dare we say, tripled when you do not have the mental tension to pay for it right away. However, at the end of the month, the bill seems to be more than your account balance.

Set a goal, don’t use more than 20 or 30 per cent of your credit score. Avoid having too many credit cards, you’ll end up exhausting the limit of every card for things you don’t really need. Setting up a credit budget will help you answer how to manage money wisely.

suggested read: Top Reasons for Your Child to have Credit Card

5. Treat yourself occasionally

No, we’re absolutely not contradicting ourselves. If you go too hard on yourself, you’ll just have burnout and you will eventually spend even more. Let’s take dieting for example. If you’re just focussing on eating roughage, you’ll eventually want to eat the entire brownie box suddenly one day.

So is the case with savings, don’t forget to include a cheat day in your expense list. Go out, eat whatever you like, shop a little and watch your favourite movie. Set a day in a month, or week where you can pamper yourself a little. How to manage money wisely goes well together with treating yourself every once in a while.

Conclusion

Honestly, managing your money is not really as tricky as you might take it to be. You have to start with small steps to take a huge leap. The mystery of how to spend money wisely is revealed. Summing it up in the shortest way possible- you don’t have to cut down on your necessities, you just have to cut down on the unused items.

So, folks, this was all you needed to know on how to manage money in the best way possible. So if your New Year’s resolution is saving some bucks, we’re certain you’ll be able to have rocking results.

If this helped, we’ll be waiting for our treat.

hope you loved this blog. you might also like:

• top money management tips to prepare your teenager for the future
• top 17 things to do in Kasol for a 2022 excursion
• learn how to save money as a student with 7 great tips
• best tips on planning investment as a teenager
• top 9 ways how parents can teach their kids about personal finance
• 6 tips for busy parents to teach their kids about money