Money Management Tips 2023: Smart money moves this year, money will remain in hand, adopt these tips from today itself

The first step in money management is to understand what is your goal and for this, you should also choose your goals wisely. Your goals should be SMART ie Specific, Measurable, Attainable, Relevant and Time-Bound. Which means you know what you want. It should be clear how much and for when it is needed, how it will be achieved, it should have some significance in your life, and it should come under a certain period.

Saving is a good habit. By doing this you build a great habit and save money in the long term. But we all know that there is a much better way to make money than to make money. In this case, investment is the only option. However, don't invest for the sake of investing. First understand your need, risk appetite and investment tools and then start investing. Here also the same SMART formula will work.

The second biggest formula of money management is to calculate the expenses. You understand your expenses and control them. If you keep track of this, then you have won half the battle. It is very important to have a ratio balance between your income and expenses. If you get a salary every month, but the money goes out here and there and then you do not understand what is the achievement of the whole month, then it is sad. To improve it, you must understand your expenses and regulate them. You can also use a budgeting app for tracking them.

Nowadays using a credit card, and taking a loan has become a very common habit. We may not have the stability to set off the loan, but we do not hesitate to borrow as before. But this habit can trap you. Also, if you have taken a loan, then paying EMI is a compulsion. In such a situation, you should first focus on clearing your debt. The total value of your loan and EMI should not exceed 20-25% of your income.

Along with investing, you should also keep checking how your investment portfolio is, where you are going, and whether the portfolio is helping you in achieving your goals or not. You should modify it as per the requirement. You should take your financial decisions with the advice of a financial advisor.