Hyderabad: Financial planning is very important in our lives as nobody knows what is in store for us. There better late than never, wake up from slumber and start financial planning in the new financial year. For this, you have to prepare a list of your income and expenses. If you have never attempted to write a list till date, then you should start immediately.
Financial planning: Start planning with your expenses first. If you know why and how much you are spending, be prepared to adopt financial discipline. If you know where to cut the expenses then the rate of savings will be increased. Calculate each expense in a month and identify what are the unnecessary costs are and make it a point not to spend money on unnecessary things. If you are already writing about income and expenses look at them carefully again. If there are any unnecessary expenses incurred by you, try to stop them so that you can save money that can be invested for future needs.
Financial goals: Each person allocates a certain amount of his earnings to achieve financial goals. It is in the form of savings and investments. Review these goals once in the new fiscal year. If there are changes or additions in the financial objectives, the investment plans should be changed accordingly. For example, suppose you want to buy a house after 10 years then the monthly investment amount should be increased. Therefore, you need to prepare your budget accordingly in terms of investments.
New investments: If you want to start new investments, you have to start from the first month of the financial year. If there are already investments they should be checked once. By examining regularly you will know how the investments you have made are working. Get rid of poor-performing funds. Such a decision should be taken only in the case of funds that have not been performing properly for more than one year.
Insurance policies: It is important to note that insurance policies can protect you in difficult times. So, take health and life insurance policies immediately. A life insurance policy should be at least 10-12 times the annual income. Those who are married and have children should review the sum insured. The appropriate amount should be insured.
Tax plan: It is advisable to invest in tax deduction schemes from the first month of the financial year. Investments should be made keeping in view how much the tax burden will be. Since investments can be made until the end of the financial year, there will be no last-minute mistakes. It is possible to invest regularly throughout the year.
