Financial planning is what sets or breaks the whole thought-out process. It is always advised to take the necessary time to evaluate every scenario possible. Financial planning is a typical procedure that provides us with a framework for achieving our life goals and aims, planned in a way to avoid the bigger hurdles.
Figuring out how to master your finances with a mobile banking account may be a daunting task for some. However, it turns out that some simple steps can slowly and steadily allow you to ace your finances. The sooner you learn about it, the better financial decisions you make.
Whether you are using online banking apps or traditional banking methods, here are some of the ways you can master your finances.
- Management of money
Managing someone’s finances does not have to be boring. It is no rocket science anymore; you can ace your financial management without a financial background. All you need is a little bit of commitment.
Making a decision to save is the initial step towards managing your finances. It is indeed a powerful step for greater financial independence. Saving money steers you clear of every kind of debt trap. Additionally, systematic saving on a daily basis may make you rich over time. The ideal ballpark regarding how much to save is around 10% of your monthly income.
- Automate the finances
If you have a clear sense of your objectives and how much you are required to save to get to those, you need to opt for automatic online money transfers from your checking account to your savings account for those goals. It makes it easier to save and may take into account the urge to spend rather than save.
You may additionally automate contributions to the investment accounts as well. The fewer decisions you have to make for money, the easier it will be to make smart decisions.
- Realistic monthly budget
You need to use your spending habits every month and the monthly take-home pay to establish a budget that you know you may keep. There is no use in establishing a budget depending on massive changes, such as never going out to eat while you order food 4 times a week. You need to create a budget around your way of living and your spending habits.
You need to look at the budget as just a way of encouraging good habits, such as cooking at home more often.
- A personal balance sheet
Having a personal balance sheet for yourself is always helpful to understand what you own and what you owe. It is a very strong tool to take your finances to the next level.
Before getting started with this, you need to pull together all the proof of liabilities, bank statements, and other assets’ value. Then, you can list down the liabilities and compare them with assets to see where you stand.
- Online application features
Leveraging an online account is also beneficial. Here are some of the IDFC FIRST Bank online application features that can help you with mastering finances:
- Download your ‘smart’ statement – know where your money is headed
- See and manage your ‘upcoming’ spends
- Add funds right away from any account
- Have each of your bank accounts in one place with UPI
- Open an FD in merely 2 clicks
Wrapping Up
No matter what new mobile banking app you plan to use, the best practices we mentioned will help you ace your finances. Investing in the future is one of the best ways to help yourself be financially free. The IDFC FIRST Bank grants you the best deposit account to kickstart your investing journey.
