9 healthy financial habits to follow in 2024

20 December, 2023

There is always optimism, excitement and hope when the new year is around the corner. From New Year resolutions to career goals to travel plans, everyone has a list of things they want to do. And personal finances always find a place on this list.

To ensure that your finances sail smoothly in the new year, you can start by re-evaluating your spending and saving patterns. So, as you step foot into 2024, use the past year as a reference and frame your financial goals according. Here are financial resolutions to help you out.

1. Set financial goals
   
   Take time and set realistic financial goals for 2024. Having a clear objective at the outset can help you stay motivated to meet your goals, whether you want to save for a down payment on a house or save for future education. HDFC Bank can help you achieve your goals with attractive offers on Loans.
   
   

2. Re-evaluate your budget
   
   It is easy to lose track of your monthly expenses in the absence of a monthly budget. So, as you begin the new year, it is time to critically evaluate your routine expenses and look for ways to cut down on non-essential costs.
   
   Ask yourself whether you have been saving enough to build an emergency fund. If you haven’t, start now by investing in risk-free options like Fixed Deposits or Recurring Deposits. You can even consider Mutual Funds for higher returns. And if you have loans to clear, first chalk out a plan to repay your debts and then invest strategically in the new year. You can use a monthly budget planner to track your spends and maximise savings.
   

3. Don’t deposit all your money in one bank account
   
   Over the years, the unfortunate crisis faced by certain banks has made us realise that keeping all your hard-earned money in just one bank account may not be the best idea. Also, a high interest rate should not be your only criterion while opening a Savings Account. Therefore, it is safer to maintain your money in a trustworthy and reliable bank like HDFC Bank. Besides, as per the latest RBI norms, bank account holders are insured for up to ₹5 lakh by the Deposit Insurance and Credit Guarantee Corporation (DICGC). So, you will be able to make full use of this regulation when your deposits are spread across banks.
   

4. Go on a spending fast
   
   Try to limit unnecessary spending in the new year. But this does not have to mean you stop spending entirely; learning the knack of restraint is important. For instance, shop for new clothes once in three months instead of every month, or order food once in two weeks, instead of every weekend. Time your purchases; for instance, HDFC Bank’s Festive Treats is an ideal opportunity to purchase big-ticket items as you can avail of amazing discounts and cashback offers. What’s more, you can potentially earn reward points on your Credit Card spends and further maximise your savings. A spending fast is a great way to curb impulsive buying and to stay on track with your financial priorities.
   
   

5. Prioritise insurance
   
   Experts suggest that your Life Insurance coverage should be equivalent to at least 10 times your annual income. And a comprehensive health insurance plan with critical illness coverage is indispensable in today’s day and age. Therefore, sign up for health and life insurance, if you haven’t already and ensure that your family members are covered too. Insurance not only provides financial assistance in medical emergencies but can also help save on taxes. With your HDFC Bank Credit Card, get 5X Reward Points on minimum spends of ₹15,000 on insurance.
   
   

6. Build an emergency fund
   
   The importance of an emergency fund cannot be stressed enough. Start contributing towards an emergency fund so that you’re ready to face medical emergencies, cash crunches, etc. One way you can build this fund is with a Fixed Deposit. You can typically earn returns at a higher rate. Banks allow you to prematurely withdraw funds from the FD. Albeit a nominal penalty is applicable, you still have a sum of money at your disposal.
   
   

7. Start contributing to a retirement fund
   
   Due to inflation, the cost of goods and services will only increase with time. What will not increase is your income. Hence, it is crucial that you take the time to map out a retirement plan. Stock market investments could be an excellent addition to your retirement portfolio since stocks tend to perform well when held for longer durations. You can also consider dedicated retirement plans, like the National Pension System (NPS). Here, you can invest in various securities and obtain the corpus in the form of an annuity.
   
   

8. Find a second source of income
   
   Building multiple income streams can save at the time of a financial crisis. And the new normal has brought remote working and the gig economy into mainstream awareness. So, this year, make a resolution to be more productive and put your skills to good use by signing up for freelance opportunities and earning extra cash. You can even start blogging or vlogging by creating educational or entertaining content. With a bit of ingenuity, you can not only supplement your income but also add value to your resume by developing a side gig.
   
   

9. Make smart cuts to monthly bills
   
   Whether it's your utility bills, internet or phone recharge or subscription fees, look for smart ways to make these monthly payments and bring down your outgoing costs. For example, with HDFC Bank's all-new online payments app –PayZapp – you can earn CashBack on paying certain bills and now you can even send money to other bank accounts with its newly added UPI feature. With SmartPay, you can automate bill payments using your HDFC Bank Credit Card and earn assured rewards and CashBack. What's more, get up to ₹1,800 CashBack + ₹800 vouchers on SmartPay.
   
   Also, look for smart ways to save while spending. With your HDFC Bank Debit and Credit Card, get discounts on dining, shopping and bookings.
   
   The best way to start a new year is by staying hopeful. Set realistic New Year’s financial resolutions and stay optimistic So, let go of yesterday’s history, stop worrying about tomorrow’s mystery and enjoy today because it is a gift – the present. Here’s wishing you a happy and peaceful 2024!
   

* The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. You are recommended to obtain specific professional advice from before you take any/refrain from any action. Investments are subject to changes in tax laws. Please contact a professional consultant for an exact calculation of your liabilities.