Oh yes, you read it right. When one can have a resolution for a calendar year, then why not have one for a financial year?
Had a very difficult year end? Had to make last-minute investment decisions to save tax? Regret blindly following your colleague’s investment plan? Well, the bad news is you can’t really change the past. But the good news is you can change your future.
The new financial year just started and you have just finished submitting your investment proofs. You are planning to sit back and relax for the rest of the year and deal with the taxes next year. Well, here is a reality check for you. Your next year end will be pretty much same as this one. You will end up making the wrong decisions and regret it later on.
I have a better plan for you. Live your life with no regrets. I’m sure the mail from your HR has already been moved to the trash by you regarding your investment declaration. I’m sure by the end of this article that email would be on your priority list.
Make a financial resolution so that you can lead a healthy financial year ahead. Here are few tips that will help you with building a resolution and also work towards achieving it.
1. Plan out the year ahead
Ideally, it is a good idea to plan out the financial year ahead than sit around and waste time until next January. Start with writing your goals down along with the time period to achieve them. These can be short as well as long-term. A short-term goal can be to save up for a vacation this year or buy a car next year. A long-term one would be to save up for the down payment for a house in 3 years and retirement at 55.
2. Budget your Expenses and Calculate your Savings
Start making a budget of your expenses and calculate how much you can save monthly. How much of your savings can you invest is an important question that you have to answer.
3. Improve your understanding of Finances and Start Investing
There is no one single best way to invest all your money. Know which investment products are available to you to invest to realize your goals. Know which ones can help you do your tax saving as well and start investing in these to achieve your goals. Read more articles on the Upwardly blog for a head start.
4. Cover for Risks and Emergencies
Make sure you have a proper cover for your risks in the form of health and life insurance. Go for flexible plans which would allow you to cover for hospitalization, post-hospitalization treatment, disability, injuries, surgical procedures, and domiciliary treatment. I also urge you to have an emergency fund built up so that you don’t have to look for a helping hand in case of an emergency.
I hope I have created enough trigger for you to work on your financial resolutions while I work on mine.