वर्ष के लिए वित्तीय योजना- 5 बातें शामिल करें

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Year-end is a good time to review your investments and financial goals. This allows you to adjust the monetary plans i.e., the spending and savings for the remaining months of the year. Moreover, it lets one determine whether or not to continue the same plan over the next year.

Financial planning will allow you to review your short and long-term monetary goals. You will also be able to assess your current financial situation through a checklist. So, if you are making financial plans for the year, there are certain factors that you need to consider.  

5 Things to Consider While Financial Planning

Although there are a lot of factors that you can consider while making a yearly financial plan depending on your priorities, here are a few that you should consider adding to your checklist.

1. Create a Budget for Personal Expenses

If you want to create an effective financial strategy then the first step is to assess your existing financial condition. This will let you responsibly manage your income and expenditure. You can start by making a list of your miscellaneous expenses like fees, annual subscriptions, etc., which usually go unnoticed but can amount to a significant sum.

In addition to this, you can also chalk out the amount that you spend on your daily necessities and eliminate a few spendings that are dispensable. You can put the extra savings from these cost-cuttings towards productive things like investment plans, retirement funds, etc. 

2. Manage Your Existing Debts and Loans

Make a note of all your ongoing debt obligations if you have any. Then consider clearing your short-term loans, which have a higher rate of interest. This will help reduce your debt burden over the year. Moreover, it will increase your credit score and in turn, boost your creditworthiness. 

If you have outstanding credit card dues, car loans, etc., plan to clear them off and then move to home loans, व्यक्तिगत लोन etc. Reducing debts will enhance your financial health and automatically put you in a position to save more.

3. Plan Your Taxes

Managing taxes should be a part of your yearly financial planning. As a result, delaying tax planning till the last moment might cause you to end up paying higher tax liabilities. The lack of time will also result in a lot of inconvenience. 

If you plan your taxes ahead of time you can consult a tax professional and also get to know about any benefits for which you might be eligible. Additionally, you will get time to arrange your tax-related documents to avoid hassle in the future.

4. Review Your Insurance Coverage

Making plans for emergencies should always be a part of your family’s वित्तीय योजना. Especially if your family depends on your income for their monthly expenses then you should include life and health insurance in your financial plan. If you own a two or four-wheeler, then you should also consider getting vehicle insurance. 

However, make sure to read the terms and policies carefully before purchasing such insurance. Even if you have existing insurance policies, you can re-evaluate them to ensure they cover all your needs.

5. Create a Fund for Emergencies

A financial emergency can strike at any time. This is why it is a wise decision to figure out a way to deal with them well ahead of time. Try to create an emergency fund which can ideally cover at least 12-24 months of your expenses, including your debts and EMI payments.

People might find it difficult to put aside this specific sum from their monthly income. This is where budgeting comes into play. With a proper budget plan, saving up for an emergency fund is an easily achievable goal. 

However, if you are still in serious need of funds during an emergency, you can opt for short and long-term loans from Credmudra. This platform evaluates your details and displays the best possible match for a lender from whom you have the highest chance of credit approval.

Financial planning is crucial in achieving your monetary goals and also keeping track of your progress. Doing it earlier rather than later will let you make modifications to your spending and saving habits without any hassle. What you include in your financial plan is dependent on your priorities as well. Thus, apart from the points mentioned above, you can also incorporate other goals that you wish to address.   

FAQs About Things to Consider While Financial Planning 

1. Should I hire a professional financial planner to help with my financial planning?

If your finances are simple, you will most likely be able to do it yourself. However, if you are facing a complex financial situation, then hiring a professional financial planner to help you out will be a good idea.

2. How to make sure I achieve the goals specified in my financial plans?

Being vague or indecisive about your financial goals will make it hard for you to follow them over time. This will delay your overall progress. Thus, set clear achievable objectives and review your plans regularly to keep an eye on your financial growth. This will help you to easily reach your set goals.

3. What are the mistakes to avoid during financial planning for the year?

Putting off a financial plan, improper budgeting, not accounting for emergencies, not reviewing the plan periodically, etc., are some of the common mistakes people usually make. Not communicating the plans to the concerned people like spouses, children or immediate family members is another grave error you should avoid.