A New Financial Year came with many new resolutions. Isn’t it? To which extent we are successful in meeting our own expectations is the real challenge. A very important New Year resolution can be managing your personal finance which at times you do neglect. All you need to do is set a goal and try to achieve it in the most desirable manner. So, that you can be debt free and invest your money and can earn the most possible benefits.
Do you think organizing your finance is a difficult task?
It might sound so but it isn’t in a true sense. If you have a proper budget and a clear idea of your expenditures you can manage everything very easily without many efforts.
So, would you like to make this New Financial Year, a much better year for your finance?
Then what are you waiting for?
Go and grab the best ideas which can give a new direction to your financial state.
Let us look at 8 necessary steps to organize our personal finance:
1. Reviewing your investment portfolio and re-balancing investment mix:
A person gets so busy with his work and life that he forgets to have a proper view of his expenditures and the performance of the various financial assets like mutual funds, Bonds, stocks etc. It is very necessary to have a proper glance at your investment portfolio and make some good investment strategies. So, that you don’t miss any earning opportunity which you deserve to enjoy.
2. Tax-Saving with SIP in ELSS or low-cost ULIPs:
Even though people know their salary structure but at times they take stock of which they don’t even realize that they utilize all tax benefits under Section 80 or not. They end up investing in some equity-based ELSS in a bulk without having a proper look at the conditions of the equity market. But it is important that you identify your total preferred amount to invest into ELSS for saving tax at year end. Systematic Investment Plan(SIPs) together with minimizing loss control the inconvenience of the financial market. Investing through schemes like SIPs and ELSS you can earn higher returns and can easily achieve your financial goal.
3. Reviewing your investments especially for retirement goal:
Planning your future beforehand can be a great help. Keeping things for the last moment is not a good idea. Retirement is a long-term financial goal so you need to review it once a year making sure that all the necessary steps relating to a good retirement plan are taken to secure your future.
4. Insurance needs to be reviewed:
Life is very unpredictable. At any time you might go through very unexpected states like losing a loved one heavy uninsured loan taken or even a holiday can bring a big difference. Health Insurance must be reviewed so that all the premiums are paid correctly so that you don’t face any issue while getting the benefits out of it.
5. Increasing your SIP in accordance with growth in annual income:
You are supposed to start the Systematic Investment Plan(SIPs) with lower amount thereby increasing it every year with increasing growth in annual income. This helps in increasing income overtime also increasing the investment ability.
6. Smartly using your annual bonus:
If you are about to receive a bonus on salary then it must be planned very smartly so that it can be utilized in the most desirable way. You need to decide whether you need to pay a loan partly or fully leading to a reduction in debt.
7. 15G/15H needs to be deposited:
If you are fortunate enough not to fall in the tax bracket after all the deductions then you need to deposit 15G/15H certificates to banks so that your TDS is not deducted.
8. Reviewing financial goals with proper time frame:
Making a financial goal with no desired objective is a total mess. You might need a Financial Advisor to advise you on all the proper plans and strategies so that it can help you take a correct decision regarding your financial state. A proper time frame shall be maintained so that it will guide you towards achieving your goal.
If you are smart enough to look after all the required plans in order to manage your personal finance then you will certainly be able to achieve your financial target in the new financial year.
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