With the year coming to an end, one should check one’s finances and make some money moves to make sure one’s finances are in shape.
Financial experts often suggest reflecting on one’s finances, investments and savings at the end of the year to make sure that one is on the right track with one’s financial goals. After making goal-oriented investments and savings, it is also vital to keep track of it throughout the year. This includes financial decisions such as anything related to one’s finances starting from savings, investments, insurance protection, as well as tax-saving plans.
With the year coming to an end, one should check one’s finances and make some money moves to make sure one’s finances are in shape.
Reviewing financial goals: By doing so you will find out if your investments and savings are still in line with your goals, your risk profile, and your investment time-frame. Therefore, it is better to review your complete portfolio. Take the help of financial advisors if necessary and find out if all is going in the right direction. Doing so will help you revise and modify your investment plans if your old asset allocations are no longer in line with your goals.
Insurance in place: Evaluate all your insurance policies and see to it that all your family members along with you are adequately covered. While making sure of the sum insured, see it will it be enough after considering your income and dependencies. If you find out that either you or any of your family members are not adequately covered, you could always opt for a top-up plan.
Debt situation: Make a note of your current debt situation, so that you don’t worsen it. For example, one should take a look at their money outflow towards any new loan, or old loans, such as personal loans, car loans, home loan EMIs, credit card payments. Doing so will give you the idea of how much debt you can take on comfortably, without stressing you financially. Note that too much debt can cause financial damage in the long run.
Build an emergency fund: Building an emergency fund is necessary, but at the same time maintaining it is the crucial part. Having an emergency fund is like a backup that will help you out during your rainy days so that you do not dip into your savings. Hence, reviewing the emergency fund at regular intervals is also necessary and if needed, top it up in case of any shortfall.
Tax planning: Last but not the least, don’t wait till the last minute to do your tax planning. Experts say most people wait till the last minute to do their tax planning. However, it …….
