How To Reset Your Finances In Seven Days? CA Shares Step-By-Step Guide To Rebuild Wealth

Financial uncertainties can hit anyone, but those who remain unprepared may face a bigger crisis. Amid the rising inflation, market volatility triggered by global and domestic factors and massive job cuts, financial difficulties pose a serious challenge for salaried employees and business owners.

However, these situations can be managed with a few simple steps and a change in mindset. According to Chartered Accountant and tax expert Nitin Kaushik, one can take control of their money in just seven days, one step at a time.

Kaushik, in a recent 'X' post titled ‘How to Reset Your Finances in Just 7 Days,’ shared simple solutions to assess one's finances and rebuild wealth. The CA said most people need a reset instead of a ‘financial miracle’.

“Most people don’t need a financial miracle — they just need a reset. One small step each day can shift your entire money mindset. Here’s how I’d personally reboot my finances if I had to start from scratch again,” he advised, sharing a step-by-step guide for seven days.

These steps involve simple actions driven by a thorough assessment of the financial difficulties and a mindset to overcome the situation. Let’s take a look at the seven-day formula suggested by CA Nitin Kaushik.

Kaushik suggests assessing your financial situation and facing the reality on the first day of the exercise. Be it a low savings account balance, pending credit card bills, or huge loans, don’t hesitate to accept the reality, according to the CA.

This outlines the importance of accepting the reality before taking corrective measures. “Money anxiety grows in the dark. The moment you face it, you shrink it,” he said.

The financial expert suggests tracking all your expenses, from rent and EMIs to even small subscriptions, on the second day. According to Kaushik, even minor spillages like ‘invisible Rs 500’ could be the real causes of financial problems.

On the third day, it’s time to reflect on your spending habits. The CA encourages all to “cut one habit, not happiness.” Even the elimination of one unnecessary spending can bring financial and emotional relief.

When it comes to money, Kaushik recommends setting aside an amount for 'yourself first', before planning other expenses. He suggests automating even a small amount of Rs 1,000 a month can help you build financial discipline. Here, consistency is the key instead of scale or the amount, according to the financial expert.  

The fifth day of the task should be dedicated to evaluating your income sources and taking a step towards earning ‘something slightly better’. “Sometimes your next level isn’t in saving more… it’s in earning slightly better,” Kaushik added. He suggests exploring options like small freelance gigs, side projects, or selling unused items to boost your income.

The CA suggests customising your budget on the sixth day as per your needs. Calling budgets tools of freedom and awareness, Kaushik suggests a revision in your budget paves the way for savings, spending without guilt and enjoyment.

On the final day of this exercise, the CA suggests setting a 30-day money goal. As small financial gains gradually lead to confidence and financial freedom, Kaushik calls it ‘long-term wealth creation through short-term wins.’ These small financial goals could be saving Rs 5,000, clearing a small loan, or finally starting an SIP, according to Kaushik.

The seven-day reset guide shared by Kaushik for financial well-being offers a practical approach to take control of your money again, despite all challenges. If you are looking forward to rebuilding your wealth, these simple steps could be helpful in effective money management.