Expenditure and income

While planning your expenditure keep in mind your monthly salary. In order to manage your money carefully, plan your activities in such a way that you do not spend more money than you have. Treat credit cards as a payment method, not found money. If you're low on funds, put the cards away.

Late payments of bills

Paying the bills past due date will cause fine. It will also adversely affect your credit score. One of the key things to a good credit score is the timeliness of repayment by an individual.

Not having an emergency fund

We are not aware of the unexpected incidents which can cost us money. Set aside a small part of your income every month to deal with such unexpected expenses instead of prematurely withdrawing your investments. Once you've set aside your emergency fund, possible savings goals to consider might include: having some extra money to draw on while you're on maternity or paternity leave, a holiday day trip without worrying about the bills.

Loans and debts

Now a days it is pretty much easy to get a loan in India. Before applying for a loan ask yourself if that expenditure is actually necessory. Do you have any credit card debt, student loans, vehicle or housing loans? Figure out how much remains at the end of it. Once you've done this, at least you'll know what you have to deal with and you can work out what you need to do next.

Don't be scared to take risks

If you are in your 20's or early 30s, don't be scared to invest in risky instruments. You can look at some riskier investments like equity funds. The simple logic behind this is, if it doesn't quite work out, you still have time on your side to make even. If you are above 30s you may have to pay home loan, car loan, education fees, medical expenses, saving up for retirement which would make you averse to risk.

Cover your assets

Nobody really knows how much insurance they need. Don't leave yourself, your family, and your properties and assets financially insecure. Keep yourself prepared for future disasters.