Finance

How to be smart with your monthly payments and save money?

Prioritising monthly expenses and bills is often quite difficult. This is more so when you are on a tight budget. Sometimes it might not even be possible to make all your monthly payments. This is when you need to get smart and follow some guidelines. Be it online recharge or electricity bill, you need to create a budget.

Have a spending plan and budget ready at hand

You will never be able to get ahead if your expenses are more than your earnings. It is one of the sure signs that you would be in financial trouble. One of the best ways to make sure that your income is greater than what you spend is to track your expenses for a few months. When you start to understand your expenditure, you can create a budget. The budget can be very simple, but you need to have one.

Pay off any debt and stay out of it

Before anything else, you need to pay off all your debt. You should start by paying off your most expensive debt. You need to focus on the most expensive debt. Credit card and loans charge a lot of interest. You should also make sure that your bill payments are not accumulated. Pay off any electricity, water and other bills to keep out of debt. While doing online recharge, you can use the Airtel Payments Bank platform to get cashback and save some money.

Prepare goals and save for the future

Saving money for the future is crucial. You need to have proper savings goals. When you have goals and you work towards them steadily, you might not have to depend on credit. You might need to work through retirement years to supplement your pension. You will also find it impossible to enter retirement if you are in debt or do not have enough money to make proper payments. You need to have a Tax Free Savings Account and plan for your retirement years.

You should start saving early

Even when the interest rates are low, the magic of compound interest helps people to build retirement funds. If you begin saving early, you would need to save a lot more each month to create the same corpus. It is advised to start saving for your retirement as soon as possible.

Doing the proper research before making major financial decisions

A lot of people will be doing more research before buying a smartphone than they would before buying a new house. Be wise enough to set yourself apart from this crowd. Buying a home, car or saving for retirement are some of the biggest financial decisions and need to be taken with great insight. No major financial decisions in life need to be taken on the spot. If you are being pressurized to make a deal, this might be cause for alarm.

These are some of the ways you can be smart with your airtel bill payment and other monthly payments. Use the Airtel Payments bank to make payments and save on cashback.