Banking is still an important function of Finance Management

Finance management is something that we all do in our life at different levels. It's not that everyone pro in finance management can be called the person doing financing but I believe everyone in their life is involved at different levels of Finance Management. In simple words, I believe it's money management that how much we need to spend and how much we need to save depending upon the income we do through one or more sources. We earn money and we spend the same for various requirements and also for the responsibilities that we carry in our life manage the money in such a way that The funds are used wisely to accommodate all the expenses are called money management.

Banks are an important part

I still believe that banks are an important part of our life for money management because this is where we keep the funds and use them for various purposes. For example, I keep my fiat money in my saving account that I use whenever I need to pay for something including goods or services. Some people say that banks are not worth it anymore and it is high time when we need to leave the banks I believe it may sound easy but it is not because there is no alternative. If I don't have a bank account with me then I do not know how to keep the funds there and if I need to pay online then what are the ways so ultimately I will have to rely on something where I can keep the funds and use it for online payments. I also would not prefer to keep the cash with me because carrying it is not easy and that is where again I need a bank account that can help me to withdraw the money whenever I need else I think it is better to keep it in the bank account. I surely understand that the banking system has not been changed in the last few decades so it is time when they need to adopt some innovation and make it more user-friendly and innovative.

Even if the bank does not go for innovation then also their existence is important for various things including maintaining a savings account or going for lending because in traditional words crypto cannot fulfill this requirement as there are multiple challenges.

Credit card is helpful

Last year I got my first-ever credit card from the bank where I hold a savings account and I was not aware at the beginning that how I can make the most of my credit card. Now after one year, I find myself in a better place where I know what should be the best use case for credit cards and how it can help us to make good use of money. With credit cards whatever spend is made can give us a time of 1 month. If we make the bill payment for the credit card on time then there are no extra charges levied by the bank So in simple terms we are getting funds from the bank to use for a month without paying anything extra. On top of these, the bank also gives some reward points on the transactions which is an additional bonus and I am sure most of you are aware of it. These reward points are not a big amount surely good to consider.

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Now I use my credit card for all the spending which are necessary for me and I do not consider it as free money because if I do then it might create a problem for me. Any expense that is needed for me and I will have to do is done through my credit card now and I get one month to pay back the outstanding. This way there are two benefits - first I do not need to use the funds lying in my bank account for all the expenses and this way it generates some interest however it is not big but it is still better than nothing. Secondly- I accumulate some rewards point and these can turn out to be big after a certain period. now there is an option provided by the bank that I can use my reward points to adjust against the card outstanding and this way they are giving me back the money which is available as per the balance of reward points in the credit card. This is a good use for the credit card I can say based on my experience but maybe the case that I'm missing something and you might suggest me so please share if you know something which I'm not aware of.

Lending with Banks

In India, lending Can be availed through two options including the banks and nbfc. Here NBC means non-banking financial corporations and they work like a bank but they are not allowed to provide bank account services. The government has licensed them to provide financial lending services to people following the same guidelines which are issued to the bank and this way probably the government is trying to reduce the burden going to the banks. I was not aware of this fact unless I went for a home loan but then I realized that going to the bank for any lending service is better than nbfc. I had home loans sanctioned by the NBFC first but the experience was not good hence after two years I had to make a switch and went to the bank for the balance transfer and since then my life has been easy. Banks are still better in terms of following the guidelines of the government and they are more supportive in case of help. Based on my personal experience I can say that if you are looking for lending services in India then never go for the NBC and always prefer to go for the bank because here you will get money along with peace of mind. the Peace of Mind is very important I believe along with money so it is worth considering.

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So these are some of the ways that I follow with my finance management and I'm sure that every individual has different planning and methods to deal with which is fair because things cannot be the same for everyone. I can't believe it if someone comes to me and say that he or she does not manage any sort of finances because this is not the truth as we all do it at our levels and no matter what amount is but we do it for sure.

Thank you so much
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Posted Using LeoFinance Alpha