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Money Management Tips to Improve Your Finances

Managing money does not end with keeping tabs on your expenses or saving for the next big purchase. This is exactly where most people go wrong! Money management is all about finding ways to make your finances work better for you. You might be budgeting every month to ensure you get through your days without overspending. However, true money management takes it a step further by focusing on wealth creation, financial growth, and long-term stability.Read More

Yet again, without a structured plan, even the highest earners can find themselves struggling financially. Meanwhile, disciplined money managers can create abundant wealth even with modest incomes. Bottom line? It is not about cutting back on everything you enjoy but making smarter choices to grow and protect what you already have.Read Less

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Written ByShruti gujarathi
AboutShruti gujarathi
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Shruti gujarathi has 5 years of experience in the BFSI sector, and as Manager- Digital Marketing at Bajaj Allianz Life Insurance, manages digital and content marketing. She has had hands-on experience in content strategy, performance marketing and Strategic Alliances over a career spanning 10 years.
Reviewed ByRituraj Singh
AboutRituraj Singh
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Rituraj Singh,With over 6.5 years of experience in the insurance industry, Rituraj Singh, Manager- Product & Brand Marketing at Bajaj Allianz Life Insurance overlooks new product launches, compliance, and brand projects, leveraging artificial intelligence and technology to enhance outcomes.
Written on: 14th Jan 2025
Modified on: 16th Jan 2025
Reading Time: 15 Mins
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Money Management Tips to Improve Your Finances
 

Here are 18 unique and actionable money management tips that will help you improve your finances!
 

1) Create a “no-spend” day/week.
 

There are certain days in your week when you avoid all unnecessary spending, even small essentials. For example, meal prep in advance for food or use public transport if possible. Over time, this will show all the non-essential spending patterns in your budget. This practice also helps in better purchasing habits and cutting down on unnecessary expenses over time.
 

2) Use the “envelope system” for cash expenses.
 

This is the next best money management strategy. Withdraw a fixed amount of cash for necessary spending each week. Divide it and keep it in labelled envelopes like “groceries,” “entertainment,” and “miscellaneous.” When a particular envelope is empty, you have to stop spending.
 

3) Start seasonal budgeting
 

Adjust your spending habits to match seasonal changes. For example, reduce energy bills during summer by using fans instead of air conditioners or budget extra for holiday gifts in December. Also, set aside a specific amount each month for predictable yet irregular expenses, like holiday shopping, family events, or annual insurance premiums. This is yet another excellent money management tip that keeps your budget realistic, helps you avoid overspending, and keeps your finances in line during high-spending periods.
 

4) Use sinking funds
 

Break down future irregular expenses. This includes vacations, car repairs, or gifts into smaller monthly savings goals. This will minimize the need to dip into emergency savings or credit cards during times of crisis.
 

5) Use the 30-day rule for impulse purchases.
 

Keep a running list of items you want but do not need immediately. Revisit the list after 30 days. You will often find that the urge to buy has faded. This method is a crazy money management tip that saves money and reduces clutter.
 

6) Automate expense categorization.
 

Several financial apps automatically tag your expenses. These generally offer a bird’s-eye view of your expenses and will highlight areas for adjustment without needing constant manual effort.
 

7) Use credit cards strategically.
 

Beyond paying off the full balance monthly, make sure you are aware of the billing cycle to get the most out of interest-free periods.

8) Gamify debt repayment.
 

This is yet another interesting personal money management tip. Break your debt into milestones (e.g., every ₹10,000 paid off). Reward yourself for reaching these goals with small, non-monetary treats like a movie night at home, etc. You can also take up this challenge with a friend to stay motivated and add accountability to the process.
 

9) Conduct a financial audit.
 

Schedule quarterly reviews of your finances. Categories your liabilities, assets, and income sources. Identify the recurring expenses that can be reduced or eliminated. With this, you can refine your budgeting strategy.
 

10) Start with reverse budgeting.
 

Save and invest first, then spend what is left. For example, allocate 20% of your income for savings, pay fixed costs like rent, and use the rest for miscellaneous spending. This prioritization ensures that your savings grow consistently without being treated as an afterthought.
 

11) Diversify income streams.
 

This is one of the most well-thought-out money management strategies. Start with small side hustles or investments to build multiple sources of income. Consider options like freelancing, part-time, renting out unused space, or investing in dividend stocks. Diversification not only increases income but also protects against financial shocks.
 

12) Automate your savings before spending.
 

Set up auto-debits from your salary account into a savings or investment account at the beginning of each month. This habit ensures that you are saving constantly without totally relying on discipline. 2
 

13) Track daily spending with a realistic limit.
 

Break down your monthly budget into daily allowances, and use expense-tracking apps. This is not only an excellent money management tip for beginners but for everyone. These apps can send reminders when you are nearing your daily limit, helping you avoid overspending.
 

14) Create separate accounts for goals.
 

Open high-interest savings accounts for particular goals like emergencies, vacations, or education. Label each account. It will help you stay motivated and ensure that the funds are not accidentally spent elsewhere.
 

15) Reassess subscriptions and memberships regularly.
 

Audit your credit card or bank statements quarterly for all the recurring charges. Cancel unused services like gym memberships or streaming platforms if not required. Try downgrading to basic plans if usage is low.
 

16) Use windfalls very strategically.
 

Next up in the list of personal money management tips include windfalls. Whenever you receive a bonus, tax refund, or any unexpected income, avoid the temptation to splurge. Instead, allocate it toward paying off debts, building your emergency fund, or investing in long-term financial goals.
 

17) Diversify investments beyond fixed deposits.
 

You can also expand your portfolio by trying mutual funds, Exchange-traded fund (ETFs), instead of relying solely on fixed deposits.1 These options may offer the potential for returns and allow you to spread your risk.

Wrap Up
 

At its core, money management tips are all about taking control of your finances instead of letting them control you. It does not involve having a savings account but about making decisions today that will help you live comfortably tomorrow.

When you manage your money well, you open the door to endless possibilities: less stress, more freedom, and the ability to plan for what really matters. Most of these tips for better money management may seem unnecessary, imperfect, or overwhelming in the beginning. However, it is not about perfection but rather progress. The earlier you start, the more you will thank yourself later!
 

 

 

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The views stated in this article are not to be construed as investment advice and readers are suggested to seek independent financial advice before making any investment decisions. Bajaj Allianz Life Insurance Company Ltd., Regd. office Address: Bajaj Allianz House, Airport Road, Yerawada, Pune - 411006, Reg. No.: 116, CIN: U66010PN2001PLC015959, Call us on toll free No.: 1800 209 7272, Mail us: customercare@bajajallianz.co.in

BJAZ-WEB-ECNF-12248/25

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Disclaimer

*Tax benefits as per prevailing Section 10(10D) and Section 80C of the Income Tax Act shall apply. You are requested to consult your tax consultant and obtain independent advice for eligibility before claiming any benefit under the policy.

~Individual Death Claim Settlement Ratio for FY 2023-2024

1Premium Holiday has to be selected at inception to avail this benefit and also depends on other policy terms & conditions


Bajaj Allianz Life Insurance Co. Ltd. | IRDAI Reg. No. 116

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Terms & Conditions

I hereby authorize Bajaj Allianz Life Insurance Co. Ltd. to call me on the contact number made available by me on the website with a specific request to call back. I further declare that, irrespective of my contact number being registered on National Customer Preference Register (NCPR) or on National Do Not Call Registry (NDNC), any call made, SMS or WhatsApp sent in response to my request shall not be construed as an Unsolicited Commercial Communication even though the content of the call may be for the purposes of explaining various insurance products and services or solicitation and procurement of insurance business

 

Please refer to BALIC Privacy Policy

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%%Above illustration is for Bajaj Allianz Life eTouch- A Non Linked, Non-Participating, Individual Life Insurance Term Plan (UIN: 116N172V03) considering Male aged 25 years | Non-Smoker | Policy Term (PT)– 30 years | Premium Payment Term (PPT) – 30 years | Sum Assured opted is Rs. 1,00,00,000 | Online Channel | Standard Life | 1st Year Premium is Rs. 6,238. 2nd Year onwards premium is Rs. 6,659. Total Premium Paid is Rs. 1,99,349 | Medical Rates | Yearly Premium Payment Mode | Death benefit opted is lumpsum payout and monthly installments (Lumpsum Payout Percentage : 45, Income Payout Percentage : 55) | Premium shown above is exclusive of Goods & Service Tax/any other applicable tax levied, subject to changes in tax laws, and any extra premium and is for illustrative purpose only. This is inclusive of all the discounts mentioned above.

##Tax benefits as per prevailing Section 10(10D) and Section 80C of the Income Tax Act shall apply. You are requested to consult your tax consultant and obtain independent advice for eligibility before claiming any benefit under the policy.Above Tax benefit is calculated considering deduction of Rs. 150,000 and applicable tax rate of 31.20%.

@Term Insurance plan bought online directly from Bajaj Allianz Life Insurance has no commissions involved.

^^The Return of Premium amount is total of all the premiums received, exclusive of extra premium, rider premium and GST & /any other applicable tax levied, subject to changes in tax laws
Bajaj Allianz Life Insurance Co. Ltd. | IRDAI Reg. No. 116

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Disclaimer

Bajaj Allianz Life eTouch- A Non Linked, Non-Participating, Individual Life Insurance Term Plan (UIN: 116N172V04)

*Tax benefits as per prevailing Section 10(10D) and Section 80C of the Income Tax Act shall apply. You are requested to consult your tax consultant and obtain independent advice for eligibility before claiming any benefit under the policy.Above Tax benefit is calculated considering deduction of Rs. 150,000 and applicable tax rate of 31.20%.

~Individual Death Claim Settlement Ratio for FY 2023-2024

1Premium Holiday has to be selected at inception to avail this benefit and also depends on other policy terms & conditions


Bajaj Allianz Life Insurance Co. Ltd. | IRDAI Reg. No. 116


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*Not available if policy issued after 14th July 2025.

 

^Benchmark: Nifty 500 Multifactor MQVLv 50 Index past 5 CAGR Returns, as on 30th May 2025. Past returns of a fund are not necessarily indicative of the future performance of the fund. | Please consult the financial advisor before investing.

 

The Unit Linked Insurance Products do not offer any liquidity during the first five years of the contract. The policyholder will not be able to surrender or withdraw the monies invested in Unit Linked Insurance Products completely or partially till the end of the fifth year.

 

ULIPs are different from the traditional insurance products and are subject to the risk factors. The premium paid in ULIPs are subject to investment risks associated with capital markets and the NAVs of the units may go up or down based on the performance of fund and factors influencing the capital market and the insured is responsible for his/her decisions. Bajaj Allianz Life Insurance Company Limited is only the name of the Life Insurance Company and Bajaj Allianz Life Future Wealth Gain IV - A Unit- linked Non- Participating Individual Life Savings Insurance Plan (UIN:116L202V01), Bajaj Allianz Life Goal Assure IV - A Unit-linked Non-Participating Individual Life Savings Insurance Plan (UIN: 116L204V01), Bajaj Allianz Life LongLife Goal III is A Unit-linked Non-Participating Whole Life Insurance Plan (UIN:116L203V01), Bajaj Allianz Life Invest Protect Goal III - A Unit-linked Non-Participating Individual Life Savings Insurance Plan (UIN: 116L205V01), Bajaj Allianz Life Magnum Fortune Plus III - A Unit-linked Non-Participating Individual Life Savings Insurance Plan (UIN: 116L207V02), Bajaj Allianz Life Goal Based Saving III - A Unit-linked Non-Participating Individual Life Savings Insurance Plan (UIN:116L206V01),  Bajaj Allianz Life Fortune Gain II- A Unit-linked Non Participating Individual Life Savings Insurance Plan (UIN- 116L196V02) and Bajaj Allianz Life Smart Wealth Goal V - A Unit-linked Non-Participating Individual Life Savings Insurance Plan (UIN: 116L201V03) are only the name of the unit linked insurance contracts and does not in any way indicate the quality of the contract, its future prospects or returns. Please know the associated risks and the applicable charges, from your Insurance agent or the Intermediary or policy document issued by the insurance company. The various funds offered under this contract are the names of the funds and do not in any way indicate the quality of these plans, their future prospects and returns. For more details on risk factors, terms and conditions please read sales brochure & policy document (available on www.bajajallianzlife.com ) carefully before concluding a sale.

 

Nifty 500 Multifactor 50 Index Fund is available Bajaj Allianz Life Future Wealth Gain IV - A Unit- linked Non- Participating Individual Life Savings Insurance Plan (UIN:116L202V01), Bajaj Allianz Life Goal Assure IV - A Unit-linked Non-Participating Individual Life Savings Insurance Plan (UIN: 116L204V01), Bajaj Allianz Life LongLife Goal III is A Unit-linked Non-Participating Whole Life Insurance Plan (UIN:116L203V01), Bajaj Allianz Life Invest Protect Goal III - A Unit-linked Non-Participating Individual Life Savings Insurance Plan (UIN: 116L205V01), Bajaj Allianz Life Magnum Fortune Plus III - A Unit-linked Non-Participating Individual Life Savings Insurance Plan (UIN: 116L207V02), Bajaj Allianz Life Goal Based Saving III - A Unit-linked Non-Participating Individual Life Savings Insurance Plan (UIN:116L206V01), Bajaj Allianz Life Fortune Gain II- A Unit-linked Non Participating Individual Life Savings Insurance Plan (UIN- 116L196V02) and Bajaj Allianz Life Smart Wealth Goal V - A Unit-linked Non-Participating Individual Life Savings Insurance Plan (UIN: 116L201V03)

 

In addition to the already existing funds, Nifty 500 Multifactor 50 Index Fund is now available with the above mentioned products. Customer has an option to choose from other available funds apart from Nifty 500 Multifactor 50 Index Fund

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Terms & Conditions

I hereby authorize Bajaj Allianz Life Insurance Co. Ltd. to call me on the contact number made available by me on the website with a specific request to call back. I further declare that, irrespective of my contact number being registered on National Customer Preference Register (NCPR) or on National Do Not Call Registry (NDNC), any Call made, including via Voice over Internet Protocol & WhatsApp, SMS or WhatsApp messages, in response to my request shall not be construed as an Unsolicited Commercial Communication even though the content of the call may be for the purposes of explaining various insurance products and services or solicitation and procurement of insurance business

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