25 Signs You Aced Your Money In 2017

1. You have saved for the rainy day. Emergencies can come in myriad forms – job loss, accidents, health emergencies, repairs, and so on. But you’ve set aside at least six months of your current income to help you face your challenges head on.

2. You can differentiate between savings and investments. You don’t just have money in your bank account (or under your mattress). You’re actually investing it actively to create wealth and get ahead.

3. You have short, medium, and long term money goals. You know how much money you need to allocate for each goal. You don’t just have dreams—you’re also realizing them slowly.

4. You know your credit card terms and conditions. You understand how expensive credit card debt is. So you repay your card balance in full and on time since you’re aware of the penalties, interest rates and the credit score damage. 

5. You use your credit card within 20-30% limit. You know that frequently maxing out your cards makes you appear credit-hungry to lenders when you approach them for a loan.

6. Your EMI payments are on time. You’re not one to let a debt linger. An ECS mandate ensures your EMIs are paid on time every month.

7. You know your credit score. You are aware of your credit history, and know how your loan and credit card repayment habits have impacted your score.

8. You didn’t mix insurance with investment. You understand that to insure adequately and to invest smartly, you must separate the two. 

9. You know your family’s insurance needs. You have made the effort to calculate what your dependents would need in case of your untimely death.

10. You bought a term plan. You know only that can adequately replace your income and protect your family’s financial interests in your absence.  

11. You have health insurance. All your family members are insured. You are aware of medical inflation and know the astronomical damages that a sudden hospitalisation can inflict upon your family’s wealth.

12. You have a budget. Money in the bank at the start of the month isn’t an invitation for you to spend it away. You take care to allocate towards needs before you splurge on wants.

13. You differentiate between needs and wants. And you know how to fulfill both to remain content with your life. 

14. You have multiple streams of income. You have done this by developing new career skills, taking on part-time work, and by investing smartly.

15. You have a tax plan. You have purchased the necessary tax-saving investments without waiting for the financial year-end. You’re aware of your 80C and 80D needs like the back of your hand. 

16. You buy tax-efficient investments. You prefer equity mutual funds and PPF. You are smart that way.

17. Your vehicles have comprehensive insurance. You don’t go without third party insurance since you know it’s mandatory by law.

18. You invest in financial assets. Mutual funds, ETFs, PPF etc. are the way to go with you instead of physical assets such as real estate and gold alone.

19. You are aware of the prevalent inflation rate. You understand what inflation does to your money. Which is why you invest in assets that can beat the inflation rate.

20. You understand compounding. You know that delaying gratification on your investments would help create wealth in the long-term.

21. You invest every month. You don’t wait for the financial year when you’ll make a hurried, badly-thought tax-saving investment which you’ll regret later.

22. You have gone digital. You didn’t wait for the demonetisation to start using UPI, e-wallets and netbanking. You’re also helping others around you adopt cashless finance.  

23. You have nominated your accounts. Your bank accounts, investments, insurance etc. are clearly nominated, and your nominees know what to do in your death.

24. You are saving for retirement. You know retirement isn’t a nebulous, far-away idea that only other people must worry about. You are already investing towards your long-term money needs.

25. You have a will. You rest easy knowing your dependents aren’t going to have a hard time splitting up your assets.

This article originally appeared in The Finapolis. 

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