Parag Kumar ( Editor)
Lucknow. We all know that the fiscal year 2017-18 has already ended and the new 2018-19 has already started. When every financial year passes away it also teaches us a lesson that how well we planned our finances last year and what we can do to rectify if there is any mistake. We can follow a few tips to refresh finances in the current fiscal year-
1. Reducing Financial Liability : The best thing we could do to refresh our financial portfolio is to reduce our financial liability. Interest rate on personal loans, credit card loan is very high as compared to home loans. It imbalances the monthly budget. Reduced monthly EMIs help us to invest and further brings us closure to our financial goals.
2. Invest in Health: We invest in equities and takes the market risk in order to grow our wealth.Meeting expenses of hospitalization in case of any uncertainty can squeeze our overall wealth. Therefore we should invest in Health and Term Insurance, the early start also attracts lower premiums. It helps our family financially at the time of real need.
3. Explore Tax benefits: Tax planning should be done immediately at the beginning of the new fiscal year to save all kinds of tax.
4. Link all investments: We should link all our investments with financial goals for effective planning. Any investments without any financial goals are aimless, as one can’t quantify it well.
5. Maintaining debt : Debt/Equity investment ratio can be decided on the basis of age. A person of 30 years of age can keep 70% of his overall investment in equity, considering he is investing it for a longer period of time i.e. 10years. Each year one can increase and decrease his investments in fixed income and equity investment options accordingly.