Categories
#finance

4 Best Money Advice for 2022

We all want to create wealth and live a stress free life. But all this can happen when we value our money the right way. Now you ask what do I mean?

Money when kept in the bank account, will not grow. One needs to be wise to juggle and manage the finances well. Like they say, money attracts more money. But that only happens when you know how to handle it well.

Also Read: Financial Goals to achieve in your 20’s

So here are the 4 money advice one can practise in 2022.
  1. Pay off the Loan: A wish for a big house and a good lifestyle made you buy the house of your dream. But once you move in, don’t forget the house still belongs to the Bank and not you. After taking a loan, pay off should be your top priority. Banks allow pre payments, so as and when you have money to spare, pay it off towards your loan. Life is unpredictable and you really don’t want your family to loose the house or pass the burden of the loan. So sooner the better.

    4 money advice for 2022
    Photo by Karolina Grabowska on Pexels.com
  2. Get a life insurance: Continuing from the previous point, one needs to have a good life insurance to cover up the family in ones absence. When you fail to do so, you leave behind you family laden with loan and financial crunch. One smart move from your end can secure your family’s life.
  3. Invest 20 to 30% of your income: When we talk about investment, we just don’t mean Bank FD. There is much more to investment like Mutual funds and Equity. Start early. As soon as you secure a job after your college, make sure you start saving. Investments can start from as low as Rs 500/- . So you don’t need to have a lot of money to kick start. Build your knowledge about the investment market and start investing. Also make sure your investment accounts at least 20 to 30% of your income. When single and young, you can dedicate a higher percentage as you don’t have additional responsibilities of spouse and child care. As the age progresses and so does your experience, alter the portfolio to accommodate more.

    4 money advice for 2022
    Photo by Alesia Kozik on Pexels.com
  4. Power of compounding really works: When it comes to money and investment, the one word that you will love is “Compounding“. Compounding means you earn interest on the principal as well as on the interest that you earned earlier. And works best when you intend to stay invested for a longer period of time. To understand more about the Power of Compounding read my blog here.

Money matters are personal. One may have money but also an ailing family member who is draining all the money out. While other may have a low income but no liability what so ever. In both the scenarios, what helps is investing the right way. All you need to do is weigh your options and choose what is right for you.

29 replies on “4 Best Money Advice for 2022”

Money matters are one of the most important aspect of life and many people find it hard to handle. you have shared great tips in this post, I did not aware about power of compounding. will check out your previous post to know more about it.

Paying off home loan is highest on our priority list right now. Happy that we’re taking the right financial decisions for 2022. Compounding is a good way to multiply our investments.

I agree with you to building our knowledge about the investment market and starting investing early is important. I think young students should be engaged in practical financial concepts. You have mentioned some good suggestions to follow.

This is really sound and practical advice. As everyone knows. loans can be draining on your finances and cause high interesti burdens, hence paying them off as soon as possible makes a lot of sense. Saving is also very important as it is all about planning for the future.

Yes Money matters. It matters to live a life and a decent balance between earning and investment makes the life of family secure. I always love your very practical and mindful tips. Compounding is really a good a bit relaxing way to invest these days.

Great 4 advices for saving money. But my question to you is would you suggest paying off loan before than doing a saving scheme. or vice -versa. Don’t you feel continuing the loan will eventually make the installment less significant in due course of time.

This is one of the best money advice one can get. We always feel saving money is a big task and in this we forget to start saving. One must really follow these simple and effective money advices every time.

Experts and market readers, think that this is the best time to invest in property and stocks. I have also discussed the same with our financial advisor and as you shared above, he gave us same tips.

Leave a Reply