Goals for the new financial year - How to manage finances well

The new year is the time for new resolutions, new promises, new energy. And the new financial year calls out to set up new goals and to work towards achieving them. Managing finances smartly is something we all want to do and end up craving for more.

 Here are few suggestions, which will help you to manage your finances smartly and make your future secure:

Start making a budget

Making a budget helps us to plan our expenses better. Considering your monthly earnings, allot a certain amount of money to the different accounts i,e House rent, grocery, school fees, fare or petrol expenses, and so on.

In the beginning, you might find it difficult, but gradually you will find it quite helpful in managing your expenses.

You may either use a notebook or you can use any mobile application to make your budget. There are several free applications available in the play store/app store for the same.

Pen down your expenses

Make a habit of noting down all your big and small expenses, whether it is buying a new laptop or buying a pack of chocolate. By the end of the month, you will see how much money is spent on these so-called small things. Noting them down will help you to cut down these unnecessary expenses.

Get out of the debts

Set your goal that you will get out of your debts as early as possible. Challenge yourself and allot more money than earlier to pay off your debts.

Promise yourself that you will not take more debts in the future.

Start saving your money

Whatever your monthly income is, start with saving at least ten percent of it every month. Gradually, start pushing to fifteen or twenty percent of it by cutting on unnecessary and unwanted expenses. Before spending each penny, ask yourself whether it is really necessary or really worth spending. Don’t purchase anything just because it is attractive or is on sale.

Save separately for an emergency fund and for a post-retirement fund. Believe me, this money adds up quickly and helps to make your future comparatively secure.

Learn about finances and investments

Only saving money is not important. It is much more important to know what should we do with this saved money. Read some books on money and finances. You can also research online or you can take advice from some of your relatives or friends and decide how and where to invest this money.

You can buy some policies, invest in mutual funds,

make fixed deposits or recurring deposits, invest in the stock market.

Read some good literature on investments. Consult some financial planners and decide where to invest your savings.

Aim for a better career

Even if you are very happy in your present company, you need to work for your stability you can even aim for a better position in the same company. To achieve this goal, you must educate yourself further. You can also join some online courses to improve your skills.

Even changing your company for a better growth opportunity is not a bad idea.

Even a new startup can be a great idea in the new financial year.

So, go ahead and challenge yourself for better opportunities.

Invest in Asset Building

Buying assets is one way to get ready for a longer run. For example, if you are accommodating a rented apartment, aim for your own house this financial year. And if you already have your own house, investing in property is always a great idea.

Throw toxic financial habits out of the video

If you have a habit of relying on your family in emergency situations, stop doing that. This is one toxic financial habit that will ruin your financial health and keep you away from your financial responsibilities. Make sure that you are independent and take charges of your finances on your own.

Get Insurance

Protect your finances with the right amount of insurance. Your insurance can range from a car insurance, home insurance, life insurance or even medical insurance. This is an investment too so be wise and choose the right plans.

 These are some of the financial habits and goals you must adopt in order to keep your financial health intact and change your financial course for good this year.

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