Let’s face it; something about the New Year inspires us to make a positive change in our lives. And with the period of rising goods and service costs coinciding with the coming of 2022, now is the perfect time for you to commit to some financial goals.
Doing this for the first time? Well, here are five financial resolutions you can make to improve your financial fitness.
Build an emergency fund
The good things in life are always unexpected. However, so are the bad ones – illness, job loss, cash crunches, etc. – especially if you’re not financially prepared for them. So, start your new year by building an emergency fund. All it takes is – small, timely deposits every month in your bank account. Or better yet, buy an insurance policy for whatever you need to protect. Doing so will help you tackle the ebbs of life while you enjoy its flow.
Additional Read – Why to Invest in Mutual Funds?
Manage your debt
Debt is a double-edged sword. Use it wisely, and it can be the most convenient financial tool. Let it pile up, and you’ll never run out of financial problems. So, come 2022, start working on your outstanding debt. Firstly, keep it manageable – don’t take up new credit until you’ve already closed the previous ones. Also, make sure to clear your credit card debt first, as they come with quite premium interest rates.
And lastly, choose a tenure that’s compatible with your financial goals. For instance, if you plan on moving to a new home ten years down the lane, keep your loan terms shorter than that.
Create a budget
Though emergency funds and debt management are essential financial goals, if you want to yield significant results, you must be aware of your income flow. And creating a budget is the fastest way to do that. Start with listing all your monthly expenses, most important bills. Then take some money out for your personal needs. Use the remaining money towards your debt and other commitments. And at last, put away a small part of your savings for emergencies.
Whatever the scenario, having a budget will always keep you on your financial front foot.
Additional Read – Investment Guidelines 2021-2022
Set a plan of investing x rupees every month, regardless of market performance. Today, there’s plenty of material available online through which you can educate yourself about investing. However, remember that don’t time the market and play short-term.
Think and act long term, and follow a regular financial discipline. By doing this, you’ll be on the path to creating a substantial retirement or emergency corpus using mutual funds.
Look for alternate income sources
If the COVID-19 pandemic has taught us anything, it’s that life is unpredictable, and it’s best to have a second job to fall on. Thankfully, today’s internet is ripe with online part-time jobs that you can work for and bring home a respectable secondary income. Starting your blog or a YouTube channel are other great side hustle options if you wish to be self-employed.
Whatever your 2022 financial goals are, we at Tata Capital can help you achieve them with our bespoke financial instruments. Check out our range of insurance plans, loans, and credit card offers today by visiting the Moneyfy App