Yes, these moments come totally unannounced and catch you off-guard.

True, emergencies and contingencies often can't always be avoided. However, there are scenarios and circumstances which you can bypass when you know they are coming. Yes, your financial cushioning and padding start from the moment when you start taking words like 'Money',"Money-management","Financial Planning" as sincerely as some animals prioritize hunting and gathering

This road to money-management starts with practising some sub-consciously set rituals. Here are four of them which should be ingrained in each one of us.

 1 ) Avoid frivolous and extravagant spending

A sudden job loss or a sudden large expense can change the anatomy of your cash flows in a jiffy. In such moments, you would find yourself wishing for some extra money. It is more relevant for the millennials today where the generation mute is mostly clueless about saving and is living majorly on credit. A CIBIL study has found that the number of credit card accounts has increased nearly 50 per cent after 2016. Also, the number of active consumer loans has seen a rapid rise of 83 per cent over the past year to reach Rs 1.95 crore at the end of March. It indicates that we are spending on small indulgences without calculating how much these indulgences cost when they're added up. Your small expenditures like buying a cup of coffee on weekly trips to a shopping mall may cost you more when seen in totality.

2) Being mindful of recurring payments

Most businesses nowadays charge money from you on monthly basis. It is mostly done through monthly subscriptions and membership fees. And, let's be honest, a monthly hit of Rs 400 hurts lesser than a lump sum hit of Rs 4800. And, if you have 12 subscriptions like these, then you end up shelling out Rs 57,600 in a year. Psychologically, it is a good business practice. However, unused subscriptions and memberships contribute to your money drainage. If you have set "money-management" and "financial independence" as your ultimate goal, then prioritize your spending. Take a look at your subscriptions and memberships. Cancel the ones you are not using or enjoying.

3 ) Do not replace your car frequently

We all love the touch of a new car. More so, if it is our own. But, if you buy a car by taking a loan, the bank holds the title until the loan is paid off. Also, your car depreciates by 25% in the first year and nearly 50% in two years. Most people trade their old car with a new one without even giving optimum justification to the usage of the previous one. In this chain of events, you had paid taxes and registration fees, insurance amount, interest amount on your depreciating assets. The only entity which benefits from this transaction is car dealers. Stop changing your assets so soon. It is less expensive as long as it helps you get by. The money saved can be put aside towards retirement.

4) Start investing at an early age

Experts suggest that "money-management" is directly proportional to wealth creation. Start investing at an early age. The old age formula is to subtract your age from 100 and then invest the percentage of that number in equities and equity-related investment funds like an index fund, mutual funds and exchange-traded funds. Suppose you are 25. You should keep 75% of your portfolio towards equity and the rest 25% should be allocated to risk-less avenues like debt mutual funds, provident funds, bank deposits etc.

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