5 New Year Resolutions to make 2018 a Financially Fit Year
As the new year begins, our conversations start revolving around new year resolutions. When it comes to new year resolutions, health and fitness are evergreen themes with most common resolutions seeming to be around diet, regular exercise etc. Clearly, good health is something that people cherish.
But, if we were to broaden the definition of good health, then we will realize that financial fitness is also an integral part of overall fitness. After all, if our finances are in good shape, logically we will be relatively stress-free, which in itself will increase our well-being. Add to this the fact that greater prosperity would mean access to better quality of health care.
So, when we think of how to improve our fitness, we should spare a thought or two on how to achieve financial fitness.
As we start off with 2018, here are some new year resolutions for you to achieve financial fitness in the year ahead.
- Set goals with timelines: While you may have already set your financial goals, it is important to set timelines for each and check if your investments are aligned to meet these goals. For e.g. If your goal is to buy a holiday home in the next 10 years, then put a timeline for that goal, i.e. January 2028 and check if your investments are aligned to reach your goal. Review this investment every 6 months and see if you need to make modifications – either in your investments or reassess your goal.
- Review your insurance cover: The start of the year is a good time to check if your existing life insurance & health insurance cover is in sync with your family size, priorities and life stage change. check your ideal life insurance cover. Also consider getting a health insurance plan that gives you a lump sum amount on diagnosis of critical illnesses without any medical bills. know more about our health plan.
- Plan your taxes: Planning for your taxes in advance helps in making a right choice. The last-minute rush could result in you picking a low-return option just to meet the annual tax-saving target. know about the different ways to save Income tax.
- Plan your retirement income: A good time to start saving for your retirement is when you are young. The power of compounding works well in the long-term. If you start late, you may have less money in hand in your sunset years. There are many investment options through which you can plan for your retirement income, among them, you must consider Unit Linked Pension Plans. These plans help you accumulate your savings with market-linked returns and provide guaranteed income for life. know about our retirement plans.
- Approach financial planning with confidence: Many a time, people tend to shy away from any discussion about finances or money because they feel overawed by it. At the end of the day, managing money or finances is about following certain simple steps, but following them in a disciplined manner. Keeping track of your expenses, paying your taxes on time, not defaulting on your EMIs, paying your premiums on time etc are some simple yet powerful ways of taking control of your finances. It is important for each one of us to take ownership of our financial planning. If you need the help of an expert, go ahead by all means. But, in the long-term, it is in your best interest to take charge and do so with confidence.
Unit linked insurance products are subject to market risk, which affect the Net Asset Values & the customer shall be responsible for his/her decision. Comp/doc/Dec/2017/0715.