It’s time to bid adieu to 2020 and welcome the New Year 2021. We all make New year’s resolutions but we ignore the most important part: Financial Health. Let’s change the tradition and make financial resolutions for 2021.
Create a Budget
Preparing the budget is an important tool to control costs and expenditure. Here is an effective tip to make an efficient budget. Consider all your income and expenditure. Also, consider that a certain percentage of your income would be allocated towards savings and investments.
Various websites and applications offer the budget tools for day to day routine as well a periodic requirements.
Increase your health insurance cover
The uprise of COVID 19 in the year, 2020 made us understand the importance of Health insurance. You need to look at the Health Insurance Cover even if you are covered by the group Insurance Cover. It may so happen that some Health Insurance policies may not cover a particular disease or cover might be restricted to a particular threshold.
Review your life insurance
We all invest in Life Insurance but mostly as a tax saving instrument. Every person has to opt for Life Insurance Cover which would render benefits to the family in case of an unfortunate incident. This would also require taking into account the inflation factor and unforeseen expenses.
Start tax planning early
Tax planning is mostly carried out mostly when the due date approaches. However, this would neither serve the purpose nor would be beneficial in terms of liquidity leverage. There are various tax instruments available according to your risk appetite, liquidity status, and investment goals.
Write a Will
Usually, Indian people will look at will writing as an exercise of succession management which is required only post-retirement. However, the nominations and investments are required to be known by the family.