Reminder: It’s one month into 2022, and if you haven’t set your financial goals, then this is your cue!
That’s right, it’s important to set a base of financial targets for each new year. This in turn will ensure that all income and expenses are tracked efficiently. Especially if you want to begin investing your money into lucrative short-term or long-term plans. So, before you book tickets at a luxurious resort, or reserve a table at that fancy restaurant, plan your upcoming financial goals for the year.
It’s best to not rush this process, just sit down and evaluate the different existing expenses you regularly incur. This will allow you to distinguish expenses that no longer are required. They could be a subscription or service that no longer serves a purpose, or you could switch to cheaper alternatives.
This in turn will free up some money for you to direct to a more important cause like savings and investments. Identify your personal, or family’s needs, and based on those, start drawing realistic financial goals.
Save to grow financially! In recent years, many people have begun to recognize the importance of saving your income. Although it may not seem like much, but saving a small portion of your earnings monthly will reward you handsomely in the long run. You can start small by attempting to save 10% of your monthly income or avoid making impulsive purchases.
If this is your first bout with investing, then dealing with the purchase and sale of stocks may seem intimidating. In this case, you could easily opt to invest in Mutual Funds, but before making any decisions, always make sure to do your research. There’s an investment plan out there to suit every type of lifestyle!
Indulge in the benefits of investing –
However, existing investors can divert more of their savings into investments by cutting off unnecessary expenses or opting for inexpensive alternatives. Additionally, after your appraisals, you could re-structure your investments accordingly.
It’s necessary that you pay back all lenders, or risk falling into a terrible debt cycle. However, while applying for credit, or taking out a loan may be unavoidable at times, ensure quick and steady repayment. Delayed payments will badly reflect on your credit score, and additionally, incur high interest with penalty charges.
Building an emergency fund is especially crucial during pandemics and COVID-19 outbreaks. Ensure that you have at least a few months of savings to deal with situations of sudden hospitalisation or job loss.
There’s no need to add any further emphasis on the importance of the two insurance plans, given the current circumstance. They’re an essential asset to your life, especially during retirement. However, make an informed decision when choosing between a term insurance and an endowment plan.
With the increase in the average life expectancy, you may want to either start saving up for retirement or boost your existing retirement plan schemes. This will help cover any medical expenses and allow you to continue contributing to your family, financially.
Lastly, avoid neglecting your credit score, and track your payment schedules without any delays. Maintaining a healthy credit score will benefit you while applying for housing loans, a new credit card, or purchasing a shiny new car.
So, are you ready to lead a financially secure life? Keep up with the latest news in the financial realm and stick to healthy financial habits.