Happy Financial year
In the Indian accounting system, it is a one-year period that starts on 1st April and ends on 31st March. The financial year is the period in which income is earned. The income earned is assessed, taxed, and evaluated in the very next year of the financial year. I have already covered 5 things that couples should do to strengthen their financial compatibility. Now, these five things will help you for making it a happy financial year!
1. Improve savings:-
Avoid impulsive buying: – Avoid buying anything at the moment, wait and think if that’s a need or a want, and accordingly spend your money.
Start small, save big: – there is no right age or amount to start saving and investing. The sooner you start the more benefits you get from the power of compounding.
Setting the monthly budget: – every month make a list of expenses for that particular month and set aside the required money for each expense and avoid any non-committed expanse. This will ensure that you don’t spend your money on unnecessary things.
Assess and monitor savings: – Monitor your savings and try to keep up with the targeted amount of money. If there is a change in the financial situation revise the savings. This will make sure that you are always on the safe side of the financial game. This practice makes sure that the finances are stable and healthy and also avoids facing debts.
2. Improve CIBIL score:-
CIBIL score is your credit score calculated by the credit information bureau (India) limited CIBIL. This score is a 3 digit number starting from 300 – 900. These numbers calculate your creditworthiness. If the credit score is 0 then it’s marked as non-applicable N.A. by the bureau. The desirable score for the lenders is 670 – 800+. The CIBIL score plays a very important role in the loan application process. The CIBIL score works as a first impression for the lender, the higher the score, the better are your chances of the loan being reviewed and approved.
Ways to improve CIBIL score
Pay your credit cards on time: – When it comes to credit cards, the best thing to do is to not come too close to the limit of your credit cards. You should also make sure that you are not paying back only the minimum amount due on your cards, you need to pay back the entire amount or at least a sizable amount.
Pay your loans:- If there are loans on which you have been delaying the payments then you should make it your priority to start becoming prompt with the payment
Keep the borrowing to a minimum: – If you are applying for too many loans or are always near the limit of your credit card then your score is likely to come down since such activities display credit-hungry behavior. The best thing to do is not to take a loan until necessary
3. Fix your Insurances
Life is unpredictable and uncertainties can fall upon us at any time. It’s advisable to be covered with terms and health insurance.
Term insurance: – if you are looking for a policy that will cover your family’s financial needs in your absence then term insurance is your best bet. It’s affordable and also had variants to suit your family’s financial needs.
Health insurance: – Medical emergencies can be very expensive and they don’t come with a warning during that times just your life saving shouldn’t be an option. Get yourselves a health insurance plan that takes care of you and your family. Benefit from features such as cashless claim settlements, reinstatement benefits, maternity cover, and so much more.
4. Tax planning
The right approach to tax planning should be the analysis of one’s financial situation from a tax efficiency point of view to plan one’s finances in the most optimized manner. Tax planning is a legal way of reducing your tax liabilities in a year. It will help you to utilize the tax exemptions, deductions, and benefits in the best possible way for minimizing your tax burden. However, it should be done legally.
5. Get your Portfolio Reviewed by an Expert
An Investment Portfolio Review is an examination of your investments to discover and fix any weaknesses that are robbing you of the performance you need to achieve your financial goals. it helps one to increase the probability of meeting his/her set goals. It also enables one to meet the objectives of a given investment mandate, by shedding light on historical asset class performance, inflation, and other related factors. The purpose of a portfolio review is to check whether the investments are in tune with your investment objectives. Objectives include your financial goals, a horizon of investments, suitability as per your risk appetite and risk-return profile of the investments, and the allocation to various asset categories. It is advised to get it checked every 6 months as it’s easier to catch up on any changes and nothing is missed out.
One super-easy way to do this is to simply click here to search for the right advisor for you on GoChanakya.
Let’s make this financial year a rewarding one for you!