Hyderabad: Making a strong financial plan in the first month of the year itself is very important. 2023 arrived amid looming threats like Coronavirus variants and global recession. Inflation, increasing interest rates and decreasing incomes might have raised lots of questions in front of you. Hence, you have to plan properly for 2023 while learning from last year's experiences. Find out what steps are to be followed to secure your financial future for this year and beyond.
Last two years saw many challenges. Now is the time to prepare a proper plan without worrying. American psychologist Abraham Maslow described human needs as a pyramid. The most basic needs are food, clothing and shelter, which must be achieved first. Then, your savings are vital for your peace of mind and financial security.
To achieve financial freedom in the new year, save at least 10 percent of your take-home pay. Set aside 20 percent if possible. Deposit three to six times your monthly income in an FD for emergencies. Use Recurring Deposit to save money. Budget regularly. Make sure that all your income and expenses are accounted for. Don't forget the basic principle of reducing costs to increase savings.
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Only one or two percent of people are having health insurance. New Covid variants are affecting many countries. We should not neglect our preparation. Take sufficient life and health insurance policies in 2023. To ensure financial protection to your entire family, a term insurance of at least 10 times your annual income and a health insurance policy of Rs 10 lakhs must be taken.
Retail loans saw a sharp rise in 2022. Many people have taken personal loans, credit cards loans, Buy-Now-Pay-Later (BNPL), loans against gold. Make sure to pay it back from time to time. Digital and cyber crimes are more disturbing. Reports forecast a risk of further increase in 2023. Make UPI, Credit Cards, Net Banking transactions secure.
To strengthen your financial situation, you must invest, as per experts. Investing in index funds like Nifty 50 and Sensex can create wealth in the long run. Take a decision considering all factors like your life goals, investment plans, ability to bear loss, duration of investment. Set clear financial goals for 2023, says Adhil Shetty, CEO, Bankbazar.
No matter how many ups and downs there are in the market, they are all positive for the investor. Investors should look into emerging sectors such as technology, healthcare, green economy, clean energy and future mobility. One can choose mutual funds and debt funds are also a good option for those who want to invest safely, according to Raghava Iyengar, Chief Business Officer, Axis AMC.
We have to make money to be useful to us. Strategic steps should be taken to achieve short term and long term goals. Insurance should not be combined with investment. It should never be overlooked that investments should be in place to beat inflation, says Srinivas Rao Ravuri, Chief Investment Officer, PGIM India Mutual.
