Its 2016! A brand new year, offering the chance for a brand new start. People make many resolutions with the hope of keeping them through the year to meet goals they desire. You should add some of the below suggestions to your list to help you become financially independent, smarter & quicker. After all, its not only about how much you make, its also about how much you can save.
Pay outstanding debts should by far be at the top of your financial resolutions. While its easier said than done, you should strive to clear your debts as soon as possible. Start with the high interest rate ones like credit card dues and work your way down toward home loans (which would probably be the cheapest) Make a budget and plan around it. Having a written record of how you want to spend your money and comparing it to what actually you spent on can be an eye opener. Start with broad goals for each category like housing, entertainment, utilities, travel etc and work it into monthly goals. Plan for unexpected expenditures and higher expense during festive seasons.
Create an emergency corpus to see you through tough times. No matter how much you make, ideally 3 months of income should be kept separate from your savings account. Like the name suggests, it should only be used in case of emergencies like medical, loss of job etc. Buying that latest iphone should not pass for emergency.
Insure yourself and family adequately for both life and health. Do not confuse insurance with investment. The sole purpose of insurance is protection against unforeseen circumstances. Medical care is getting expensive and it is only going to grow. Having adequate medical insurance can help you receive the best care without worrying about the financial implications. Life insurance will ensure your family does not suffer financially in case of a mishap Invest Wisely should be the mantra to make your money work for you. Mearly saving by cutting down on expenses and creating a budget is not enough. You need to invest in a variety of asset classes to get consistent returns and balance the risk. Get your records in place so that you know how your investments made over a period are performing. Update communications details with your banks and register for nomination facility.