7 Best Financial Habits Every Indian Should Follow to Build Wealth
In India, conversations about money often start with, “Beta, save for the future,” but no one tells us how to do it. Personal finance isn’t a subject taught in schools, yet it’s the backbone of a secure and fulfilling life. So, if you’re looking to master your money game and adopt the best financial habits, this guide is for you.
Grab your chai, and let’s talk about building wealth, Indian-style.
1. Keep Track of Your Paisa Like a Diligent Dukanwala
Ever wonder why shopkeepers never seem to run out of stock or overspend? That’s because they track every rupee. Whether you use apps like Walnut or an Excel sheet, keeping tabs on your income and expenses is the first step to mastering personal finance.
When you start tracking, you’ll find out shocking truths, like how your “occasional” Zomato orders are actually a weekly ritual or how your daily ₹100 chai habit is worth a year’s Netflix subscription.
2. Pay Yourself First – Because You Deserve It!
Most Indians are obsessed with saving for their families, which is admirable. But here’s the twist—before you save for your future children’s education or your parents’ retirement, set aside some money for yourself.
This doesn’t mean splurging on that shiny iPhone. It means putting a chunk of your salary into savings or investments every month, before you pay your bills or fund your cousin’s wedding gift. Automate this process, and you’ll thank yourself later.
3. Spend Like a Middle-Class Parent – Ask, ‘Is It Necessary?’
If you’ve grown up in an Indian household, you’ve probably heard your parents ask, “Do you really need this?” It’s annoying but effective. Applying this mantra to your spending habits can help you distinguish between “wants” and “needs.”
Before you buy that designer kurta or the latest gadget, pause and ask yourself: “Will this add value to my life?” If the answer is “no,” walk away. Or better yet, sleep on it and decide the next day. More often than not, the impulse fades.
4. Start Investing Early – Even If It’s Just ₹500
Many Indians believe investing is for the rich or the old, but the truth is, even small amounts can grow into something significant over time. Thanks to the power of compounding, the earlier you start, the better your results.
If you’re a beginner, start with SIPs in mutual funds—simple, manageable, and effective. Platforms like Zerodha or Groww make it super easy. Think of it as planting a money tree. Water it regularly, and it’ll bear fruits when you need them the most.
5. Learn About Money – Don’t Rely on Your CA for Everything
Let’s admit it: many of us hand over our financial decisions to a friend, family member, or even the family accountant. While advice is great, blind dependency isn’t.
Spend some time understanding personal finance. Read books like Let’s Talk Money by Monika Halan or watch Indian finance YouTubers like CA Rachana Ranade. Trust me, it’s not rocket science. And who knows? You might even enjoy learning how to make your money work harder for you.
6. Create Multiple Income Streams – Don’t Depend Solely on That ‘9-to-5’
In India, the traditional route is simple: get a job, get married, and retire. But times have changed, and so has the job market. Having an extra income stream can make your financial journey much smoother.
Whether it’s freelancing, tutoring, or selling your artwork on Instagram, side hustles are a great way to secure your financial future. Plus, who doesn’t love a little extra cash for those Goa trips?
7. Stay Away from Bad Debt – Not All EMIs Are Your Friends
Let’s get one thing straight: debt isn’t inherently bad. Home loans, education loans, or even a business loan can be stepping stones to a better future. But swiping your credit card for a fancy gadget you can’t afford? That’s a slippery slope.
Pay off high-interest debt as soon as possible, and avoid taking loans for things that don’t add long-term value to your life. Think of it this way—every rupee you save on interest is a rupee you can invest for the future.
Final Thoughts: Make Personal Finance Fun
Managing money doesn’t have to be boring or stressful. Think of it as a game where you’re scoring points every time you save, invest, or make a smart financial decision. Celebrate small wins, like hitting your first ₹1 lakh in savings or paying off a loan.
Building wealth isn’t just about having more money—it’s about having the freedom to live life on your own terms. So, start with these best financial habits, and watch how they transform your journey.
Remember, you don’t need to be a millionaire to take control of your finances. All you need is the right mindset and the willingness to take that first step. Now, go ahead—start tracking, saving, and investing today. Your future self will thank you!