As we step into 2025, one thing tops the list for many: boosting financial health. Whether you're aiming to save more, invest smarter, or build stronger money habits, now is the time to set resolutions that will set you on the path to financial success. Ready to take charge? Here are the must-have financial resolutions for the year ahead!
Set a monthly savings goal and try to stick to it. Define specific, measurable, achievable, relevant, and time-bound goals. Set up automatic monthly transfers from your checking account to your savings account.
Use budgeting applications to monitor your spending, spot wasteful expenditures, and ensure you don't exceed your budget. You can also use a simple notebook to jot doen your expenses, helping you identify areas to cut back.
This entails going beyond merely investing money and hoping for a return. It entails establishing your financial objectives (i.e., your time horizon, risk tolerance, and what you're saving for), comprehending the various asset classes, such as stocks, bonds, commodities, and real estate, and investigating different investing strategies. To make wise investing choices, it's critical to consider your unique circumstances, such as age, financial status, and risk tolerance.
The emergency fund has always been an essential element of personal financial management, and when embraced in the new year, it is even more so. The cushion allows you to handle unforeseeable circumstances without endangering your long-term financial objectives. For anyone looking to secure their financial future, starting the year with an action plan focused on growing an emergency fund is necessary. Aim to save at least six to twelve months’ expenses to prepare for unexpected events.
Retirement planning is crucial to guaranteeing future financial stability. Building a strong corpus can be greatly aided by taking a proactive, organized approach to investing. Industry experts advise combining government-backed initiatives like the Employees' Provident Fund (EPF) and the National Pension Scheme (NPS) with tools like systematic investment plans (SIPs) to develop a diverse, growth-oriented strategy.
Strategies that lower your income tax liability to the government are tax savings. Individuals can reduce their taxable income or benefit from the tax law's deductions, and exemptions by employing a variety of tax-saving strategies like investments in PPF, LIC, NPS, ELSS, and others
Effective income tax planning is crucial to minimising fines and possible refunds. It also helps you keep track of important deadlines and manage your money wisely.
A liquid fund is an investment vehicle that gives you easy access to your money. Although the returns may be marginally lower than those of more long-term investments, you can withdraw your money immediately when needed.
There are many unforeseen events in life, yet even though we cannot foresee the future, we can plan for it. Planning for insurance is essential to financial well-being. Ensure you have adequate life, health, disability, and liability insurance to protect your financial well-being.
Avoid making investments that promise unusually high returns or that pressure you to make a quick investment.
Approach potential investments with caution and information.
(By arrangement with Livemint.com)
