home Financial planning 7 things you should do at the start of a new financial year?

7 things you should do at the start of a new financial year?

A new financial year is one when we start everything afresh. We jot down a new set of things to try.  The most important thing you should never miss is to size up your money. Make a rational assessment of income and expenditure of that particular year. Every year your priorities in life change along with a hike in your salary. To help you achieve your goals, financial planning is inevitable. It is an excellent way to balance the two financial elements called resources and techniques of rational spending.

Therefore, it is Source of money + rational spending techniques= Best Financial planning.

At the beginning of a new financial year, it is really necessary to review your activities for the past year to refine them so that it helps you achieve your goals.

What are the 7 things you should do at the start of a new financial year

  1. Prefer to shop using paperless methods: Go for digital transactions if you are still carrying heavy wallets with you when you go shopping. It would be handy and safe to start an e-wallet account or Unified payment interface account to effectuate financial transactions. This unified payment interface means using mobile to facilitate a transfer of money from one bank account to another to complete a transaction. To pay your utility bills it would be better to link to pay using your bank account. Try to buy insurance policies online. If you have taken some loans, you can invoke electronic clearance system for paying your equated monthly installments.

  2. Learn to be smarter by thinking early about tax planning: If you check your personal income and expense statement, a major portion of your money would be eaten up by the tax you pay to the government. Why don’t you plan for tax at the beginning of the year itself to avoid mental strain and loss of money due to unnecessary taxes? There is a wonderful tool called Tax Planning that helps you to take advantage of many provisions of law to pay less tax or avoid it altogether. When there is a provision to pay a lesser amount, why should we pay a higher amount that turns out to be a burden in the future? Thus, planning for the tax can help you save more money that can be used for investing in various schemes to double your investment. There are various tax saving instruments available in the market.

  3. Take a fresh look at your insurance policies:  If you have already bought insurance policies, reconsider them to assess whether the insurance policies are enough to support your family if something undesirable happens to you? If you are single, you can be happy with the group insurance plans provided by your employer. Instead, if you are a married person, you can’t rely solely on the group insurance plans provided by your company. Purchase an individual insurance policy from a reliable insurer. Customize your life insurance policy by subscribing to various kinds of riders available with a particular company and particular policy.

  4. Adjust your portfolio: As we are all aware of what happened in the last year, equities and debts gave more than the expected return whereas, gold displayed negative performance. Equities gave 18% higher returns and debt 9%. It is a secret to success that the one who reviews investments periodically and adjusts according to the market conditions will reap high profits out of an investment. A systematic research of the prevailing trend in the market would fetch huge profit by reallocating money into more profitable avenues.

  5.  Scrutinize form 26AS:  Tax planning is not only the process of making use of the favorable provisions to pay a lesser amount as tax. It also includes paying taxes on time to avoid punishments in the form of fines later. Therefore, check the form 26AS to figure out whether there is any discrepancy in the information in the actual tax record and the form 26AS. If there is any lack of compatibility in both the documents, file the document again after rectifying the errors.

  6. Check your spending habits: If you check your budget and expenditure to understand your spending habits, you will come to know about a lot of unnecessary spending that slim your wallet. Figure out the reckless spending that can be avoided in the future to save more money this financial year. By this, you can keep a better control on your money.

  7. Study the new financial rules set up by the government: Last year there was a lot of bewilderment due to a lot of changes because of demonetization to the union budget. As a layman, you should try to understand the changes thoroughly to avoid undesirable consequences. Try to learn about the changes brought about by the government to bring some control in your spending, and withdrawing money.

In short, you should plan for your finances to get rid of unwanted spending. It would help you to save make more money to be invested in different attractive schemes.  A combined effect of any of the above- mentioned ideas would give you attractive benefits this new year.

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