For financial freedom, keep a separate bank account for UPI payments and do not pay only the minimum dues of a credit card. These two habits can strengthen your financial position by controlling expenses, protecting you from fraud, and saving from the trap of interest. Let's know how.

Do you also want to save some money from your hard-earned money? If yes, then to walk on the path of financial freedom, you will have to adopt some important habits from now on! Keeping a separate bank account for UPI payments and avoiding minimum due payments of credit card - both these things may seem small, but if not adopted, they can also make you bankrupt. Know why and how you can improve your financial condition with these habits!

Should a separate bank account be kept for UPI payments?

In today's digital era, most of us make small and big payments through UPI every day. Whether it is paying the milkman or doing online shopping. But have you ever wondered whether it is right to do all these transactions from the same bank account or not? Actually, keeping a separate bank account for UPI payments is a smart financial habit, that helps you control expenses and gives you financial security. Let's understand this in some points.

1) Better control over expenses

When you use a separate bank account for daily UPI transactions, you can clearly see every month how much and where you spend. With this, you can make a budget without any confusion and stop unnecessary expenses.

2) Distance remains from a savings account

If UPI transactions are being done from the account in which your savings or salary comes, then the chances of spending without thinking increases. By keeping a separate account, your savings remain safe and you spend only the amount that has been transferred to the account for UPI.

3) Protection from UPI fraud

UPI fraud cases are increasing. If your main account is linked to UPI and has a high balance, then in case of any fraud, there can be huge losses. On the other hand, if there is a separate account with a limited balance for UPI, then the risk is reduced to a great extent.

4) Convenience in tax and tracking

If you are earning from freelancing, small business or part-time work, then having a separate UPI account makes it easier to track income and expenses. This also makes tax filing easier.

Why should one avoid paying the minimum due amount of credit card?

Credit card users get a bill generated every month in which two amounts are given - one is the total due amount and the other is the minimum due amount. Often people pay only the minimum amount thinking that by paying this much, they will not get a loan or penalty. But this is where a big financial trap begins.

1) Heavy compound interest is silently charged

Paying the minimum amount will save you from the late fee penalty. But the remaining amount is charged interest of 30-45% per annum every month. This is added in the form of compound interest, which can trap you in huge debt. This is the same compound interest that makes investors rich in investments and here, paying minimum amount continuously can make credit card users poor.

2) The outstanding amount never ends

When you pay only the minimum amount every month, your principal amount decreases very slowly. You keep paying only the interest, due to which your debt does not end for months or years.

3) You can lose control over expenses

By keeping on making minimum payments, it seems that everything is going well, but in reality you keep on spending without thinking. Due to this, your credit limit may get exhausted after some time and you may get financially trapped.