A new year usually means making new resolutions and with the new financial year around the corner, why not make some financial resolutions? Improving the state of your personal finance as you grow and learn is definitely a good practice and we are all for it. So, let’s take a look at some good practices you can adopt and some unflinching resolutions you can make to ensure that you are saving enough, investing appropriately, and planning for the future that you desire.
If you haven’t set a financial goal for the year, do it now. If you had set one a few years ago, maybe it’s time to update it. Setting a financial goal and spending accordingly will help you to save the amount you want every year. For example, one of your financial resolutions could be to save Rs 60,000 this year. Tailor your expenses around this goal. All you need to do is keep the goals simple and achievable.
Your next resolution should be to reduce as much debt as you possibly can. It will take some time before you can bring it down to zero, but try paying off those loans, EMIs and credit card debts to reduce the amount of interest paid overtime. If you have multiple loans and EMIs to pay off, consider taking one loan and paying a single interest rate rather than paying multiple EMIs with varied interest rates.
The best way to take charge of your personal finances is to know more about them. Keeping a day aside every month to monitor expenses, credit card statements, EMIs, taxes and investments will not only help you understand these aspects better but also help you stay alert about any discrepancy that may arise. You would then be able to contact your bank or financial advisor immediately in case of such discrepancies.
You might have some big financial commitments and desires every year. These are things like school fees, investment and insurance premiums, renovating your house or buying that latest gadget. Such expenses can be planned ahead and your annual spending should revolve around these. Set aside a monthly sum so that you have the required amount when needed. This will prevent you from accumulating credit card debt or taking out personal loans.
A great resolution to make this financial year is to simplify your investment portfolio. You may have invested in different funds because everyone around you was investing in it or because the said fund was giving great returns. But, it’s also important to stay abreast of the market and learn more about your investment options. Use investment-tracking apps to keep track of your portfolio and ensure that you reap the maximum benefits.
Upskilling yourself can not only boost your career but also increase your income. Consider enrolling yourself in courses that will help you upskill and grow in your chosen career path. This will help you take up bigger responsibilities and roles in the future. It will also allow you to invest that extra income, thereby boosting your personal finances.
Bidushi took a left turn from journalism and landed up in the corporate world. She is a foodie and considers eating good food amongst the greatest joys of life. Keen on travelling and exploring new places, Bidushi has spent the last four years of her life in three different Indian cities. But she has also learned that her bedroom is her happy place. Screens relax her greatly — whether it's watching a movie or a TV show or reading a riveting bestseller on her e-reader. A cheerful person, she prides herself on making friends easily. When not working, Bidushi can be found spending time with her parents, talking to her friends over a call, or browsing the internet for that one lipstick!
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