Many of you may have made many plans for the new year 2020. If someone wants to fulfill the desire of holidaying abroad, then one must lose weight etc. To accomplish these goals you have to work with resolve. Along with this, you should make some determination regarding finance. Setting realistic and average goals for finance is the first step towards achieving your goal. Therefore 5 financial offers are being made through this article, which will help you to meet your goals.
- Save big for big dreams
If you want to take your new year in the right direction, then you should start saving more to fulfill your big dreams. Going on holiday abroad, adding money to buy a house, starting a retirement account, etc. can be your big dreams. Whatever your dream, you should know why you are saving. Because when you get an idea of your dreams and the expenses incurred in fulfilling it, then you can proceed by making a savings plan accordingly. If you want to achieve a big goal, you should budget your income and allocate it for various expenses and save as much as possible. For example, if you need 10 lakh rupees to make a down payment of the house, then decide the amount you will have to save each year based on the duration of the goal. After this you will need a recurring deposit account to start saving money. A Recurring Deposit account allows you to increase your money through compounding and this gives an extra edge to your goal. Its special thing is that it has a lawn-in period and you are not able to spend money before the maturity period. This way you can save money regularly to achieve your goal on time.
2. Financial review
You should review your financial portfolio at the beginning of the year, so that you can get better results on investment. If you have invested more in equity and the market situation is not good at present, reviewing can help you revise your portfolio. You should keep the following points in mind –
- Focus on your overall investment – Review your asset allocation ie stocks, bonds and cash etc. in your portfolio. Ensure that your investment portfolio is consistent with your long-term goals, risk-carrying capacity and target deadline.
- Diversity in various asset classes Diversity in asset classes helps you reach your goals and also reduces risk factors. You can also consider options like mutual funds or ETFs, if these match your goals.
- Consider the amount to be paid as tax –
If you are paying a good amount of your interest income as tax, then you can invest in any tax efficient investment option. There are many investment options such as retirement plan accounts, municipal bonds and ETFs, which provide tax benefits.
3. Try to pay off all your debts
The new year has started. You should try to repay all your debts in the new year. You should review how much debt you have overall and how much you can repay this year and at least how long you can repay it in full. If you borrowed from friends or family members, you can repay it in the next few months. But if you have pending loans from banks, then you need to make a better action plan. You should tweak your financial plan so that you can save some extra amount and repay your loans faster. If you have long term loans, then you should follow –
- Control spending – Control your monthly expenses so that you can pay EMIs regularly. You should also avoid unnecessary purchases and save some extra money in the form of emergency funds.
- Keep Credit Card Bills Low – You should always spend 70% of the credit limit of the credit card and if possible, try to reduce it further. This will help you pay your bills on time without negatively affecting your credit score.
4. Switch to auto-debit
You can auto-debit your salary or savings account. It is one of the best financial offers for those individuals who forget to pay their bills on time. Through auto-debit, you allow your bank to make monthly payments from your account to an auto insurer or loan account on a certain date. Auto-debiting your account will help you in timely payment of credit card bills and EMIs.
5. Stay invested
Once you have planned and invested, follow it honestly. Along with this, keep reviewing your investment plan from time to time and pay attention to its progress and do not come out of the investment in a very short time. Sometimes there are good returns in the long term. By doing this you can easily achieve your goals.
