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7 Financially Healthy Habits that Happy Retires Have

by Donny Stock

When you are young, you feel that retirement is a lifetime away. But, even before you realize it, your working days are over, and you are about to retire. To have a happy retirement, you must approach it well. 

This blog provides seven financially healthy habits that help you improve your current financial status and secure your financial future. 

1. Make a budget

It is essential to set a monthly budget and stick to it. If you have a budget, you can plan your expenses better, make adjustments, and make sure that you live within your means. A budget helps you get a clear idea of your needs and wants. Moreover, it avoids impulsive expenses. 

2. Clear credit card bills and outstanding personal loans

It is advisable to avoid taking loans for lifestyle expenses such as vacations, designer clothing, luxury brands, etc. However, many individuals live beyond their means, resulting in high levels of debt from outstanding personal loans and unpaid credit card balances. Thus, make sure you clear the bills in full every month. 

3. Start investing early

A savings account lets you earn 2.5% per annum as interest. It is not sufficient to meet short or long-term financial goals. Thus, you must start investing early. If you start early, you have a significant edge, especially if you are trying to achieve a long-term goal like creating a retirement fund. 

4. Be a disciplined investor

It is not only essential to make investments; it is also vital to be disciplined. A good way to remain disciplined is by using a Systematic Investment Plan (SIPs). To start a SIP, invest a defined amount into mutual funds.

5. Monitor your credit

Your credit score determines what interest rate you can avail of on a car loan or home loan. It can also affect your car insurance and life insurance premiums. 

6. Create an emergency fund

You can’t predict emergencies. If you want to be prepared financially for all emergencies, you must create an emergency fund. The size of the fund should be adequately large, which can sustain you for about 9 to 12 months. You should also continually add to the emergency fund since your monthly expenses will increase in the future. 

7. Invest long-term and avoid short term volatility

Investments such as equity investments are affected by short-term volatility. Your portfolio will have ups and downs based on existing market conditions. But it is also a fact that the volatility is temporary, and equity investments provide long-term capital appreciation. Therefore, stay invested long term to earn maximum returns from your investments. Tata Capital Moneyfy can help you build a portfolio focused on your goals. 

Wrapping upRetirement is a major transition comprising financial as well as lifestyle decisions. Tata Capital Moneyfy app is an exclusive digital wealth management offering that allows you to set goals and select relevant investment options. Having the assistance of a financial advisor enables you to develop a retirement plan as early as possible. It allows you to focus on everything else that matters.

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