You should make an effort to put aside at least six months’ worth of expenses in a quick-access emergency fund.
Also Read–BoB Q4 loans rise 19%, deposits grow 15%
A financial plan provides your life with a direction, helps you make wise financial choices and gives it purpose. Calculating the amount of money you will need to earn, save, spend and invest to achieve your life goals is part of the financial planning process. Create your financial goals now since the new year is the time for resolutions. Without financial preparedness, a new year’s resolution is frequently unfinished since doing so can end up being expensive in the long term.
Also Read– SIP calculator: This fund turns Rs 10,000 monthly SIP into Rs 10.9 lakh in 3 years – 5 points
In the event of any unforeseen circumstances, such as the hospitalisation of a family member, a job loss, etc., not having an emergency fund could leave you in a precarious financial position. So, make an effort to put aside at least six months’ worth of expenses in a quick-access emergency fund. Having an emergency fund serves as a safety net and promotes mental stability in addition to financial stability.
Also Read– Indian Railways to run special trains to meet summer rush; Full list here
Comprehensive healthcare planning must be prioritised at all times, not just during unplanned events and serious illnesses. A sound healthcare strategy protects against unanticipated events and long-term conditions that could cause catastrophic financial losses. It is equally crucial to assess and budget for basic healthcare as well as any connected costs, such as doctor visits, lab and diagnostic tests, medications, and healthcare supplies when thinking about a healthcare plan.
Also Read– Your Money: NPS offers flexibility, tax benefits to build nest egg
Planning poorly, or procrastinating, leads to missing deadlines, fines and missed opportunities to reduce your tax liability. It’s crucial to plan and begin your tax planning at the beginning of a new fiscal year to prevent these potential risks. This entails maintaining correct records throughout the year, keeping abreast of modifications to tax laws, and consulting with a skilled tax advisor who can help you spot chances to reduce your tax liability and prevent costly errors.
Also Read– 14th Installment Of PM-Kisan Samman Nidhi Yojana To Be Released Soon
Without a clear financial objective or plan, you may be more inclined to act rashly when making investments based on passing trends or rumours in the market, which can lead to substantial losses. You may learn a lot about how your net worth is increasing and how your portfolio is doing if you do this consistently for three to five years. You can use this to link your assets and savings to particular objectives.
