Apr 05, 2019
The new financial year is a fresh page. It gives you time to look back at any financial
obstacles you faced in the last year and find ways to avoid them this year. Keeping
this in mind, we’ve highlighted 5 essential things you should do while the financial
year is still young so that when it comes to a close, you’ll be in the green and
in a comfortable financial position.
1. Review & plan accordingly.
Did you meet the savings goal for the last year, were your predictions on expenses
correct, are your investments panning out as expected – these are just some of
the questions you need to answer. Based on your evaluation, you can recalibrate
how you save for your short-term & long-term goals. You can change up the portfolio
of your investment based on what worked for you and what didn’t.
2. Create new budgets.
Your income levels could be up from the last year, maybe your rent could have increased
along with other household expenses, maybe you’ll have to pay school or tuition
fees this year – there are so many heads of expense & income that could have
changed and you’ll need to create new budgets keeping these things in mind.
3. Consolidate your debts if any.
The last thing you want to take into the new financial year is multiple debts. So
if you have a couple of credit bills and some outstanding loans, it makes sense
to take out one single low-interest rate personal loan and consolidate your debts.
It will make more sense than handling multiple interest rates.
4. Get started on next year’s tax planning.
Sit down with an accountant and start planning your taxes today. Check if your current
tax-saving instruments are enough to handle your increased income levels & corresponding
tax liability. If you need more ways to save on taxes, you can look at increasing
your health & life insurance protection as the increased premium will get you
better tax deductions, you’ll also get more protection in the process.
5. Plan your big-ticket purchases.
If you’re thinking of buying home appliances or a new vehicle, it makes sense to
do so now! Most dealers will have last year’s stock on offer at discounted prices.
If it’s a new vehicle, it’s best you purchase one in the next couple of months
at the latest. Wait till late in the year and the vehicle will lose a lot of
its value on the 1st of January, even though it will be just a couple of months
old. If you are short on cash for these big-ticket purchases, you could save
up and make the purchases at the beginning of the next year, or you could opt
for one of our personal loans and finance your purchases now!
A good start will ensure a strong finish. So we hope these pointers help you start the new financial year on a positive note
and end in a strong financial position. Good luck and all the best!