5 things you should do at the start of the new financial year.
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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!