Hello Readers!

How are you all? Today it’s the last day of the year 2019, and I hope you all are well planned, about how you are going to spend your new year. Well, at the end of every year, people do prepare a list of resolutions and oaths, like losing weight, starting a morning walk, qualifying an exam, buying a house and many others, that they plan to take on New Year’s Eve and try their best to achieve them in the coming new year.  

I hope you must have also prepared your resolutions list, but wait, have you added the financial resolutions in your list? If not, then I suggest you, revise your resolution list and get your financial oaths added to the list. Financial resolutions would help you create a perfect financial plan for your coming new year, which will ultimately give you a stress-free year ahead. 

Financial resolutions include many a thing, here I am listing some important notions that you need to consider while adding financial resolutions to your oath list:

1. Monthly Expense: We have many necessary expenses per month, like grocery expenses, electricity bills, rent, milk expenses, travel expenses, school fees, and many more. These expenses cover more than half of your earnings. People do often skip their necessary payments and spend their money on something else, this only increases their debt. If you are also loaded with some kind of debt, then I suggest you, on this New Year’s Eve take a resolution to pay your debts as soon as possible, along with that also resolute, that right with the start of new year, every month you will prepare a financial chart, including all your monthly expenses, and clear all your payments on time.
2. Increase your income source: The modernizing world have a continuously growing expensive lifestyle, in order to maintain the standards of modern lifestyle, people do need to increase their income or basic income source. This can be done through many ways, like you can go for a free-lancing job along with your current job or you can convert your hobby as your part-time job, like suppose you are good photographer, you can pick up the projects on your off-days like Saturday or Sunday or on holiday.
3. Savings are necessary: Life is full of uncertain events when you will require a good sum of money, it’s not fixed, the best way to overcome this sudden call for money is pre-planning. Pre-planning can be done, you only need to save a small part of your earnings. Try your best to save at least 10-15% of your earning monthly and keep full access to this money so that you can use them any time when they are required.
4. Life Insurance and Health Insurance: In today’s world, life insurance or medical insurance have turned into necessities, having health insurance helps you to achieve the extra medical expenses and life insurance helps your family, lead a good life, after your life. So, if you haven’t punched a health insurance and life insurance yet, on this New Year’s Eve, take a resolution, and get health insurance and life insurance, and make your loved one’s life better.
5. Child’s Education Plan: This is the most necessary part of your financial resolutions. If you don’t have a child, then you have time but if you have a child, then you need to resolute about your child’s education plan. Education is the most expensive expense now and will be tomorrow, be ready for it. The increasing inflation in the education sector is going to make it difficult for a normal parent, to give the best higher education to their child, in the coming future. Thus, even if your child is 10 years old, you should start investing for your child’s higher education. So, on this New Year’s Eve, I suggest you, resolute to start a SIP investment in Equity mutual funds, in the coming new year, as it will help you earn a good return on your investment, that will help you give the best education to your child.
6. Wedding Expenses: If you are not married and you are planning to get married this year, then your wedding expenses should be on the top of your financial resolution list. Best is if you have 7-8 months in your hand till your wedding invests in a liquid mutual fund, this will give you good benefits in a short period that will help you conquer your wedding expenses. If you are married, then it's good, you can plan for your child’s wedding plan, for that you may invest in equity mutual fund.
7. Be prepared for Emergencies: Problems in life are inevitable, they don’t come with prior notice, and when they come you are left with no option, rather than to deal with it, and solve it. For these moments of life, you need to be prepared and prepare an emergency fund or rather say have some savings.
8. Retirement plan: When people retire, they cannot work full time. They need to focus on their health as well as their spouse who has aged with them. The best way to take care of all these uncertainties and financial needs of theirs after they retire, is, to have a good retirement plan. So, if you haven’t bought a retirement plan yet, on this New Year’s Eve, resolute to invest in a retirement plan, and get yourself prepared for your post-retirement plans.
9. Buying a house or a vehicle: Well having their own house or their own vehicle, is everyone’s priority, but at the same time expensive! if you have enough amount accumulated, good buy your dream house or vehicle, or if not, then better plan investment in a mutual fund, where you can accumulate a good amount and can buy your dream house.
10. Foreign trip: Vacations are a time to relax, enjoy, and spend quality time with your loved ones, and if you are planning for a foreign trip in the coming year, then exploring new places must be your priority, for the same you need to be financially prepared. Take a resolution to create a strategic plan, to get yourself financially prepared for your foreign trip.

The above-mentioned notions should be considered before you prepare your financial resolution list for the coming new year 2020.

You can also contact us at Shri Ashutosh Securities Pvt Ltd., we are here to help you in any way possible.

Happy Investing!

(Mutual Fund investments are subject to market risk Illustrations are for example only, there is no guarantee of returns. Past performance is not an indicator/guarantee to future returns).