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Alongside mental and physical wellbeing, it’s now common knowledge that financial wellbeing is key to a secure future. It’s easy to be caught up in the world’s glitz and gloss and spend as much as you want whenever you want. While all of this is entirely okay, the critical aspects of saving and investing sometimes tend to take a backseat in such a situation. To ensure sound financial health, we often set specific personal finance rules to devise a budget, track income and expenses, making money management smoother and more efficient.
We frequently hear our parents and other elders, and even financial consultants advise children and us to start saving and drawing up a budget early. The ability to handle your money wisely is one of the most valuable skills you can possess. It is both an art and a skill that should be instilled in a person from the beginning, as it is crucial for physical, mental and financial wellbeing. However, in the event of an unprecedented crisis, the situation may call for us to stray from our finance plan. At such a juncture, it’s essential to know what personal finance rules we can break. Let’s take a look.
Dipping into your safe/emergency fund
When your finances face a strain, the simple answer would be to draw from your emergency savings, making it crucial to build one right from day one. Remember, life is inherently unpredictable, and emergency circumstances often present themselves with no warning and necessitate a prompt response. As a result, it’s a good idea to set aside money for unforeseeable situations or crises. This will ensure that you continue to get a portion of the funds until they are ready to be used as needed. The emergency fund should not be used for anything other than dealing with unforeseen circumstances, as it will come in handy when you need it the most.
Delaying EMI payments for some days/weeks unless you are capable of repaying
Never take on additional debt if you want to live a stress-free life. Even while taking a loan, it’s crucial to analyze all aspects and steer clear of common moneylenders to avoid falling into a debt trap. While most of us may have EMIs or other interests to be paid, it’s best to delay paying these bills for a few days/weeks when faced with a financial crisis. However, before delaying payments during the crisis, you must be regular in your payments. This will improve your creditworthiness and the trust factor, and …….