Hyderabad: 2023 has arrived. It is time to review your financial decisions and put them into practice. What tasks to be completed this year? Review them all and chalk out a wholesome plan. Financial planning is not a one-day task. What have we achieved over time? What to achieve? Future plans should be based on the foundations of our last year's ideas and experiences.
Focus on eight points immediately for a smooth financial journey till the end of this year. Begin with mobilising an emergency fund enough for unexpected expenses for at least six months. You never know what will happen any moment. The most important thing is to be ready for everything. Your emergency fund should be a mix of savings account, liquid mutual funds and bank fixed deposits.
Investment decisions should never be delayed nor postponed. Profits depend on how long an investment lasts. Only then, can wealth be created in the long run. Implement the decisions taken in January at least in December. Then it can be said that the decision taken this year has not been postponed. Increase investment by at least 5-10 percent. This will help achieve your desired goals faster.
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Tax planning is important. Suitable schemes should be taken for tax exemption from the beginning of the financial year. Check what investments you have made during the last 9 months. Three months are left in the financial year. Investments should be completed within this time. Make it a habit to invest every month in tax saving schemes from April 2023.
Emotions and fear hinder financial plans. Investments should always have a long-term focus. When equities fall, some sell on anxiety. To succeed in the market, keep investing consistently. Make achievable goals. Make required changes. Plan investments accordingly. Short-term investments like debt and hybrid plans are good for goals of less than 5 years. Equity funds are suitable only when the tenure is more than five years.
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Investments should be diversified so as to include equity, debt, gold, real estate and international funds. Decide carefully how much to invest in each sector based on your risk tolerance. The performance of your investments will not be always the same. Some may not give expected results.
It is important to review your insurance policies once. Take a term policy for the overall financial security of your entire family. Take a health insurance policy of at least Rs. 5 lakh to cover all family members, preferably a floater policy. Taking the policy at an early age will help in getting it in a lower premium.
