A journey of a thousand mile begins with asingle step. 2016 has summed up and dechipered in the most exciting way. Thedemonitization scheme just gave in a perfect closures. It is now the time whenwe reflect back, clean our slates and resolve for a better, stronger and aricher 2017.
There is enormous amount of anticipationand excitement already about the financial policies that are likely to changein the year ahead. However regardless of what policies roll out, there aresome strategies, or we should call it ‘mantras’ that stay strong in everysituation. So if you are serious about generating some real good wealth foryourself Satco Capital has those 11 possible resolutions you can make foryourself.
Get a financial advisor
When you come to think of it, Human resource department is prevailingeverywhere. It’s all pervasive. Companies look out for best expert to consult them;banks and financial bodies hire experts to strategise and plan for them; thegovernment appoints bureaucrats to advice them. However, when it comes topersonal finance we all think ourselves as pandits. This fundamentally has3 issues:
Lack of Information
Lack of time
Lack of awareness
This year take a financial resolution toget a financial advisor for yourself. For they are the ones who can help youmake a well informed decision so that you achieve your goals ahead. There areseveral agencies and investment firms that offer their service at a reasonablecost. Satco Capital has a well experiencced team which can help you right frombuying individual products to managing the entire wealth portfolio.
Pay off debts
The second financial resolution for 2017 should be to pay off your debts. Makea list of all the debts you owe, calculate the total outstanding interest andin relative terms after considering the cost of premature closure, take adecision to close the loan or continue with it. Consider the tax implicationsas well while you decide this. Doing this will also remind you of what you oweand should keep you on your toes on your financial endeavours.
Emergency funds are of great importance because you dive into a big debt againwhen the need arises and we don’t have this fund ready. If you don’t have anemergency fund it is almost always a failed plan. No emergency fund translatesto lack of planning. There are several options here: SIP. Recurring Deposits,FD’s, Bonds (especially government bonds)
Improve credit score
If you are one of those who are close to your retirement and don’t have anemergency fund, then this will be a crucial factor in getting your proposedmoney sanction. If you are someone who’s young and starting your career, pleasepay careful attention to this. Vast majority of people are unaware about thisand face immense issues. The simplest way of bringing this under your controlis smooth and uninterfered payments towards dues.
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 housein the next 5-8 years, or even sooner. Have monthly and half-yearly target tosave x amount of money towards your new house. Adjust your savings depending onwhether you have a surplus saving or a deficit in saving. This will bring youclose to having your own house.
This the most basic mantra and the one about which we all know, we all approvebut somehow fail to implement. In this era, generating income is easier thanreducing and controlling expenses. So if you manage to keep a cap on yourexpenses, you’ll be able to achieve this. There should be no time when youdon’t think of saving.
Stick to a budget
Take things under your control. If at any point of time you introspect on yourexpenses, you’ll get shocking facts and figures around your expenses. Craft abudget for yourself and during the year compare your actuals with the budgeted,this will give you avenues to save which will help you in your resolution 6.
Get rid of high cost debt
This resolution is closely related to Resolution 2; while you’re consideringpaying off your debts consider the ROI on each of them. You can hedge your ROIbut investing the money that you have at your disposable in derivatives andoptions. The high cost debts can be covered if you do not yet have the abilityto pay off the debt in full.
Buy assets instead of paying tax on them
No one likes paying taxation, for all we know, the money is getting involved ina big and small scams about which we aren’t even aware. Investing in assets isa great way to get your money out of the taxable part. The secondary advantageis you claim depreciation and save tax there as well. Its ideal to purchaseassets before the end of September if you intend to purchase a huge asset.
Don’t confuse this with the emergency fund. Retirement plan starts withunderstanding and anticipating the needs that you might have. Pension plans areinstrumental in planning for your retirement.
Increase your income
Out of every resolution, this is a fairly easy one. You can increase yourincome with better investments, secondary source of income, freelancing yourservices, 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 reduceexpenses and save more.
Although they say that resolutionsare meant to be broken, but we at Satco Capital strongly believe that yourfinancial resolutions can certainly be attained provided a strong. well thoughtout strategy is put in place and that can only happen when our experts sit downwith you one on one and make a solid road map for the road ahead.
We wish you a Happy & Prosperous New Year 2017..