Search Suggestions
- Gold Loan
- Money Transfer
- Mutual Funds
7 Financial Resolutions to make and keep in 2018
It’s been a while since a lot of us have made and broken our New Year resolutions. The practice of setting goals which help improve your life and lifestyle is one that has been followed for a long time now. While New Year celebrations have abated, soon we will be facing the fiscal New Year; and it wouldn’t be a bad idea if you were to make some smart and prudent financial New Year resolutions of your own. Your resolve to achieve will of course depend on you and your financial situation, but these 7 financial resolutions will get you started on the right track:
1. Clear all your debts
Remember, irrespective of the kind of debt you have, a large part of the EMI goes into repaying the interest on the debt. The longer the debt continues the more interest you pay. Save up some money and start making extra principal payments to get out of debt faster. If you can foreclose a loan, do it.
The second part of this resolution is to prioritize your debts; not all of them are equal. Organize your debts by interest rates and try to pay off the ones with the maximum interest (mostly credit card debts) first.
2. Collate your past expenses
List out your previous expenses on a single spreadsheet and analyze your previous spends. Categorize and review them. Through a thorough analysis, you will see that there are a number of expenses that you could have easily avoided. Once you have a list of such expenses, make sure that you avoid making similar purchases in 2018.
3. Practice some control over your expenditure
When we talk about controlling expenses, it doesn’t always have to mean that you quit buying things that catch your fancy. It does however mean paying all your bills, on time, always. Paying your bills on time helps avoid having to shell out extra money as late fees and penalties. If you’re not that organized with your finances, you can try downloading some apps to help you make your payments on time.
4. Have a financial plan in place
Just saving money is not enough. You need to make an actual plan. Review your retirement portfolio and decide how much money your retirement account should have by the end of the year, decide how much your emergency fund should have, invest in mutual funds or stocks, and so on. Having a concrete financial plan in place is the key to it all.
5. Set a savings goal
Not many people spend the required time in setting their budgets. As a resolution, take out the time and plan out a realistic budget that you can actually stick to. And when you do that, don’t forget to account for your savings. Whether it is for investments, your retirements, or for a rainy day; you need to have a goal in mind about your savings as well. Simply saving wherever possible will not suffice, and will not keep you from dipping into your savings whenever you want to.
6. Invest in your future
A coalesce of smart financial practices, consider ways in which you can multiply your money via investments, save as much as you can, but don’t forget to think about your future. In that direction, keep adding to your skill-sets from time to time. Classes that help you acquire more qualifications to improve your job prospects are not just an extra expense, but a way to invest in your own future.
7. Review your insurance and covers
There are many insurance products available in the market, from health insurance to home insurance and personal accident covers. These insurance policies act as a financial backup against unexpected situations that could otherwise drain your savings. Select a time in the year when you review your insurance portfolio; the end of the fiscal year could be a good time to do so. This period is also when a number of insurance companies offer discounts and offers on their products, so make sure you keep a tab on it.
Plan well, stay disciplined, and keep at it. The sense of satisfaction you’ll have when you achieve the financial resolutions you’ve set will be nothing short of immense!
CATEGORIES
OUR SERVICES
-
Gold Loan
-
Gold Loan@Home
-
Housing Finance
-
Personal Loan
-
Insurance
-
Custom Offers
-
Money Transfer
-
NCD
-
Mutual Funds
-
PAN Card
-
Micro Finance
-
Digital & Cashless
-
Vehicle Loan
-
Corporate Loan
-
SME Loan
-
Milligram Rewards
-
#Kholiye Khushiyon Ki Tijori
-
NPS
-
#Big Business Loan
-
#Gold Loan Mela
-
#Gold Loan At Home
-
#Sunherisoch
RECENT POSTS
How to Reprint Your PAN Card: A Step-by-Step Guide
Know MoreSIP vs. Mutual Fund: What's the Real Difference?
Know More8 Useful MSME Loan Tips for Young Entrepreneurs
Know More12 Common Life Insurance Myths in India 2024
Know MoreSME Loans for Women Entrepreneurs: Special Schemes and Benefits
Know MorePersonal Loans vs. Car Loans: Key Differences Explained
Know MoreStudy Abroad with Ease: How a Personal Loan Can Fund Your Dream?
Know More7 Mutual Fund Mistakes to Avoid - Don't Fall Into These Traps
Know More8 Tips for Avoiding Emotional Investing in Gold
Know MoreUnlock Big Tax Savings with Health Insurance
Know MoreFAQs
Opting for a Pre-owned Car
Depending on your need and budgetary constraints, a pre-owned car might be a wiser option. Here are insights from IndianBlueBook which provide serious ‘food for thought’ in context of buying a pre-owned car: –
- India’s used car market is valued at close to ₹1 lakh crore, and saw the sale of 3.6 million (or 36 lakh) units, up by 9% from 2016.
- India’s pre-owned car market, at present, is 1.2 times that of the new car market
- With the entry of OEMs* in the space, the used car market has become more structured, with systematic attention paid to the evaluation, repair, pre-sale and post-sale processes of used cars.
- That is why more and more customers have started opting for well-maintained pre-owned cars as it is easier on the pocket.
- Also, you would have to go for used car loans which differ from the usual car loans in a number of ways.
So, you will have to decide whether you want to keep the option of buying a pre-owned car into consideration, before you decide on the kind of loan you require.
*OEM – Original Equipment Manufacturer
Can You Afford It?
Before you put your name on the dotted line, sit back and ponder whether you can handle the EMIs or not. As small as the EMI amount might seem at first glance, a car loan with a high interest rate and long tenure can take quite a toll on your finances. Take stock of your monthly expenses and then see how an EMI would fit in with them. It is also a good idea to pay off other ongoing EMIs first, before you take a car loan.
The Down Payment
A lot of financial institutions offer 0% down payment loans, but in the long run, it is better if you pay a certain amount as down payment. The down payment will otherwise be added to the principal amount of the loan, which means you’ll have to pay interest on it. That way, you would end up paying more within your loan tenure. Decide how much you can afford as down payment, and pay it upfront.
The Running Costs
Before you take a car loan and buy your car, you need to remember that buying a car does not simply end there. When you have a car, you will also need to maintain it. There will be servicing costs, insurance, maintenance, etc. Make sure that you can afford these charges as well before you buy the car.
Taking a car loan cannot be an ‘on the spur’ decision. It requires thoroughly weighing the pros and cons before you opt for it. For the sake of your finances and your peace of mind, make sure you give due consideration to it.
- South +91 99469 01212
- North 1800 313 1212