April draws the beginning of a new financial year passing by the struggles and hassles of March end. Hence, it is the time which calls for celebration and resolutions. While celebrating the achievements of the past fiscal, you should make certain resolutions to gear up for the upcoming year. This period is actually the best time to look back at your money-matters to kick-start the new fiscal year. Here are 5 monetary resolutions that you should make to give a great start to the current financial year:
- Balancing expenditure & saving
The cost of living and daily expenditures are never the same, these keep changing from time to time. The income and the aspirations are the main income determinants or in other words, these are the factors on which your income depends. Though you don’t have much control over your income, you must have a hold over your expenditure and be aware of your saving requirements. Instead of compromising with your requirements, you can follow the earn-save-spend model to budget your income in the right way. Wondering how to do that? By fixing your monthly savings you can reduce the expenditures well. Moreover, it is extremely important that you know the areas of overspending. By jotting down things where you are spending more, you can create a perfect balance of expenditure and spending.
- Spending smartly
It is not a wise option to compromise or reduce your monthly expenditures. Instead of compromising you can switch to other smart spending options. First, understand where and how you are overspending and then choose smart spending options to save a good deal of money. Usage of various mobile apps, loyalty programmes, and credit cards are the smartest options to get some discounts while spending on your requirements. You should also check for all the subscriptions that you have done in the past and unsubscribe the ones which might result in spending.
- Making early investment
Most of the time, people start planning their investments at the last month of the financial year. As a result, they end up investing their money in some random low-profit funds. If you are one among them, this fiscal, give your investment schedule a new start and plan your investments from April itself. This way you will get a lot of time to research, compare, and evaluate before investing to get the best returns. If you plan to invest in ELSS, start investing from April itself as that will give you the flexibility to reduce the risk by diversifying the amount in various funds instead of investing a lump sum amount in any arbitrary fund.
- Checking the status of your goal
When you invest in certain funds, reviewing the status of that fund is very important. April is the best time to review the fund performance. In case you find there is some shortfall, then you can add the surplus amount to get your target amount. For example, you are investing the amount in the fund for your child education or for your retirement with a target amount and if there is any shortfall you must calculate and add the required amount from April itself. So, analysing the fund at the beginning of every financial year is absolutely important to get the clear picture of your fund.
- Planning for retirement
Have you planned for your retirement yet? If not, then take the resolution to plan for it this new fiscal. Though you might think it's too early to invest in a retirement plan as the return is not immediate, it is better to start early in order to achieve the targeted amount at the time of retirement. The financial companies launch various retirement plans at the starting of the new financial year. You can also make use of the pension calculator available on various websites to calculate the returns and invest in the most suited plan this fiscal. Also, keep looking for other retirement schemes and plans throughout the year to make your retirement investment portfolio more vivid and stronger.
- Stable surplus income
Solely depending on your main source of income is not safe considering the inflation rate and increasing standard of living. Hence, finding out a stable source of extra income is very important to meet the future financial challenge with ease. The passive income will not only help you to draw a balance between income and expenditure, but you can contribute a significant amount to your savings schemes without affecting the monthly budget. While investing in mutual funds, make sure to invest the amount in a low-risk fund. Moreover, opt for small EMI investments, you can also check the latest EMI for top banks in India by doing so that you can easily manage the amount every month without hurting your budget.