Quantum Mutual Fund

 

5 Signs You’re Good at Managing Your Money

Earning enough money is one thing. Handling your finances prudently is another.

In today’s world, living a humble lifestyle is considerably difficult for many.

Easy access to frivolous expenses might be spoiling your spending habits.

Today we make it easy for you to understand if you are good at managing your money.

Simple 5 signs that will make it clear if you are on the right track while taking care of your finances.

1. Steady flow of income

If you have a steady flow of income and you know how much you earn means you are good with your money. This will help set the right expectations at first. Living within your means is a critical part of money management and growing your wealth.

2. Adopt prudent Asset Allocation

A simple and effective asset allocation strategy can make investing easy. If you are diversifying across asset classes to mitigate risk in your portfolio, you are on a right track. You may also consider adopting Quantum’s all-weather DIY 12-20-80 Asset Allocation plan. It allows you to invest across asset classes of equity, debt, and gold. With this 12-20-80 asset allocation strategy, you will invest at least 12 months' worth of your monthly expenses in a liquid fund that prioritizes safety and liquidity over returns, 20% of your overall investment corpus in Gold, and stagger the rest 80% of your investment in equity  funds.   

3. Paying bills

While this might be super obvious and a mandatory expense if you can pay all your bills regularly pat yourself on the back. This means you can afford housing, utilities, food, transportation, EMIs, and other important needs every month without going into debt.

4. Retirement planning

Retirement planning should start ideally from your very first pay cheque. If you are considering retirement planning right from the beginning and setting a portion of your earnings towards your retirement fund you are good at managing your money.

5. No credit card debt

Most of us carry credit cards. Is it a good thing or a bad is a debate forever. There are people who not just carry credit cards but also know how to make the most of it.

If you have managed to stay away from credit card debt you are good at managing your money.

A big thumbs up if you see all the above 5 signs in yourself.

Being good with money will allow you to create wealth.

If not, you now know what you need to be good with your hard-earned money. Make the most of your time and start following each point. These simple habits will help you achieve financial independence.

Disclaimer, Statutory Details & Risk Factors:

The views expressed here in this article / video are for general information and reading purpose only and do not constitute any guidelines and recommendations on any course of action to be followed by the reader. Quantum AMC / Quantum Mutual Fund is not guaranteeing / offering / communicating any indicative yield on investments made in the scheme(s). The views are not meant to serve as a professional guide / investment advice / intended to be an offer or solicitation for the purchase or sale of any financial product or instrument or mutual fund units for the reader. The article has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. Whilst no action has been solicited based upon the information provided herein, due care has been taken to ensure that the facts are accurate and views given are fair and reasonable as on date. Readers of this article should rely on information/data arising out of their own investigations and advised to seek independent professional advice and arrive at an informed decision before making any investments. 

Risk Factors: Mutual Fund investments are subject to market risks, read all scheme related documents carefully.