So, how will you know if you have enough money? These tell-tale signs can help-
1. You Invest Very CarefullyReckless investing is commonly seen among people who are not earning enough. In their bid to eliminate the short-fall and be better able to manage their monthly expenses, they often end up choosing very risky investment options.
If you generally invest your money very carefully, in a way, it shows that you are not interested in taking undue risks as you don't really need to.
2. You are Saving More Than You ExpectIf your savings are consistently increasing while the average monthly expenses are the same, this too suggests that you are earning enough.
People with lower income and higher expenses are generally not able to save enough and often run out of money by the end of the month.
3. You Can Easily Afford the Loan EMIsWith the rising cost of living, people generally end up taking multiple loans like personal loan, home loan, car loan, etc. Even if you have taken loans but can afford the EMIs easily, this also suggests that you have stable financial health.
People with poor money management skills generally end up borrowing more than they can repay. This makes monthly EMIs a major hassle for them.
4. You Have an Emergency FundHaving an emergency fund is not very difficult. But this important financial advice is so commonly overlooked that it has now become synonymous with financial stability.
Most people just end up liquidating their investments or borrow in case of a financial emergency. But financially stable people prefer having an emergency fund with at least 3-4 months of their household expenses saved.
Do You Have Enough? If you can relate to the signs listed in this post, you can rejoice as not a lot of people can achieve this feat. If you are lagging behind, reduce your monthly expenses, look for better professional opportunities, and take advantage of investment options like SIP in mutual funds.
With SIP, you get to invest a small amount every month in the fund of your choice. This makes it an excellent option for people who cannot invest a lot of money at once.
Browse through various Mutual Funds here.
The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.
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