11 Financial resolutions you can make for the year 2017
A journey of a
thousand mile begins with a single step. 2016 has summed up and deciphered in
the most exciting way. The demonetization scheme just gave a perfect closure.
It is now the time to reflect back, clean our slates and resolve for a better,
stronger and a richer 2017.
There is enormous
amount of anticipation and excitement already about the financial policies that
are likely to change in the year ahead. However, regardless of what policies
roll out, there are some strategies, or we can call it ‘mantras’ that stay
strong in every situation. So if you are serious about generating some real
good wealth for yourself, Satco Capital
has those 11 possible resolutions you can make for yourself.
1.
Get a financial advisor
When you come to think
of it, Human resources department is prevailing everywhere. It’s all pervasive.
Companies look out for best expert to consult them; banks and financial bodies
hire experts to strategize and plan for them; the government appoints
bureaucrats to advice them. However, when it comes to personal finance we all
think ourselves as “pandits”. This fundamentally has 3 issues:
·
Lack of Information
·
Lack of time
·
Lack of awareness
This year take a
financial resolution to get a financial advisor for yourself. For they are the
ones who can help you make a well informed decision so that you achieve your
goals ahead. There are several agencies and investment firms that offer their
service at a reasonable cost. Satco
Capital has a well experienced team which can help you right from buying
individual products to managing the entire wealth portfolio.
2.
Pay off debts
The second financial
resolution for 2017 should be to pay off your debts. Make a list of all the
debts you owe, calculate the total outstanding interest and in relative terms
after considering the cost of premature closure, take a decision to close the
loan or continue with it. Consider the tax implications as well while you
decide this. Doing this will also remind you of what you owe and should keep
you on your toes on your financial endeavors.
3.
Emergency funds
Emergency
funds are of great importance because you dive into a big debt again when the need arises and we don’t have
this fund ready. If you don’t have
an emergency fund it is almost always a failed plan. No emergency fund translates to lack of planning.
There are several options here: SIP.
Recurring Deposits,
FD’s, Bonds (especially government bonds).
4.
Improve credit score
If you are one of
those who are close to your retirement and don’t have an
emergency fund, then this will be a crucial factor in getting your proposed
money sanction. If you are someone who’s young and starting your career, please
pay careful attention to this. Vast majority of people are unaware about this
and face immense issues. The simplest way of bringing this under your control
is smooth and un-interfered payments towards dues.
5.
Buy a house
You put all the
efforts that you’re putting to get a house. That’s the aim, isn’t it? So why
not plan towards it and plan ahead of your time to own a house in the next 5-8
years, or even sooner. Have monthly and half-yearly target to save x amount of
money towards your new house. Adjust your savings depending on whether you have
a surplus saving or a deficit in saving. This will bring you close to having
your own house.
6.
Save regularly
The most basic mantra
and the one about which we all know, we all approve but somehow fail to
implement. In this era, generating income is easier than reducing and
controlling expenses. So if you manage to keep a cap on your expenses, you’ll
be able to achieve this. There should be no time when you don’t think of
saving.
7.
Stick to a budget
Take things under your
control. If at any point of time you introspect on your expenses, you’ll get
shocking facts and figures around your expenses. Craft a budget for yourself
and during the year compare your actual with the budgeted; this will give you
avenues to save which will help you in your resolution 6.
8.
Get rid of high cost debt
This resolution is
closely related to Resolution 2; while you’re considering paying off your debts
consider the ROI on each of them. You can hedge your ROI by investing the money
that you have at your disposable in derivatives and options. The high cost
debts can be covered if you do not yet have the ability to pay off the debt in
full.
9.
Buy assets instead of paying tax on them
No one likes paying
taxation, for all we know; the money is getting involved in big and small scams
about which we aren’t even aware. Investing in assets is a great way to get
your money out of the taxable part. The secondary advantage is you claim
depreciation and save tax there as well. It’s ideal to purchase assets before
the end of September if you intend to purchase a huge asset.
10.
Retirement plan
Don’t confuse this
with the emergency fund. Retirement plan starts with understanding and
anticipating the needs that you might have. Pension plans are instrumental in
planning for your retirement.
11.
Increase your income
Out of every
resolution, this is a fairly easy one. You can increase your income with better
investments, secondary source of income, freelancing your services, running a
small side business and it gets more creative as you think. As mentioned above,
it is easier to increase income than to reduce expenditure. We shouldn’t focus
on just one thing; we must increase our income as we reduce expenses and save
more.
Although they say that resolutions are
meant to be broken, but we at Satco
Capital strongly believe that your financial resolutions can certainly be
attained provided a strong. Well thought out strategy is put in place and that
can only happen when our experts sit down with you one on one and make a solid road
map for the road ahead.
