Ankur Warikoo, a well-known entrepreneur, author, and angel investor, has consistently shared valuable insights on money management and personal finance. Here are five actionable money tips inspired by his teachings that you can implement today to save more and reduce financial stress:

1. Embrace the Power of Budgeting with the 50/30/20 Rule:

Warikoo advocates for a simple yet effective budgeting strategy: the 50/30/20 rule. This rule suggests allocating your after-tax income in the following manner:

• 50% for Needs: This covers essential expenses such as rent/mortgage, utilities, groceries, transportation, and healthcare.
• 30% for Wants: This includes non-essential spending like dining out, entertainment, travel, and hobbies.
• 20% for Savings and Debt Repayment: This portion is dedicated to investments, emergency funds, and paying off any outstanding debts.

By categorizing your spending, you gain a clear understanding of where your money is going and can identify areas where you can cut back.

2. Prioritize Paying Off Debt:

Warikoo emphasizes the importance of becoming debt-free, especially early in your earning life. He advises against taking on unnecessary loans and encourages individuals to eliminate existing liabilities as quickly as possible. Prioritizing debt repayment frees up your future income and reduces the burden of interest payments. If you have loans, try to reduce the loan tenure by paying extra EMIs every year or increasing your EMI amount every year.

3. Harness the Benefits of Credit Cards Responsibly:

While often viewed as a debt trap, credit cards can be a valuable financial tool when used responsibly. Warikoo suggests utilizing the interest-free period offered by credit cards (typically 30-45 days) to your advantage. Make purchases on your credit card and invest the equivalent amount in a short-term debt fund. When the credit card bill is due, use the money from the debt fund to pay it off in full, pocketing the interest earned. The key is to always pay your credit card balance in full and on time to avoid accruing interest charges.

4. Boost Your Income:

For those in their 20s, Warikoo advises focusing on increasing income. Explore opportunities for active and passive income streams. This could involve taking on a side hustle, freelancing, or starting a small business. Increasing your income provides more resources for saving, investing, and achieving your financial goals.

5. Automate Your Savings and Investments:

Warikoo recommends automating your savings and investments to ensure consistency and discipline. Set up automatic transfers from your checking account to your savings and investment accounts each month. This "pay yourself first" approach ensures that you are consistently saving and investing, even when you are tempted to spend. Consider starting a Systematic Investment Plan (SIP) to invest in the stock market regularly.

By implementing these five money tips inspired by Ankur Warikoo, you can take control of your finances, reduce stress, and work towards a more secure financial future.