Paying your bank loans, saving for this year’s family vacation or planning for a secured retirement, no matter what your financial goals are it is time to get them on board and finally complete them.
Rather than setting high end resolutions which may not be so important, indulge your mind in those which may drastically benefit you and your family.
But why make resolutions now? That is because you are starting afresh and you are already in a state of mind of making strong convictions.
So here’s a 5 point financial plan which you can take up in 2016 to overcome your debts.
- Make your own Budget:
Start off with overviewing all your major finances to be borne by you in 2016. Make a systematic plan projecting your incomes and expenses. Monitor your spending habits and find out their relevance.
Find out if those expenses are skipped, then what will be its consequences. Make a list of expenses based on their importance.
Similarly, also make a list of your incomes to be earned by you in the forthcoming year. Ultimately you may be able to analysis and come up with a concrete action plan.
- Cushion up yourself for uncertainties:
You can’t be 100% sure, about your expenses for future. Sudden cash requirements, unexpected hospital bills, etc. happen. Are you prepared for it? Financial experts recommend having enough cash in the bank to cover three to six months of living expenses is an apt way for a stable financial living.
Tip: Accelerate your savings by soaking up your tax refunds immediately.
- Plan to tackle your debts:
Average bank loan interest rates are hovering around 9-9.50 percent. The best way to start off is to start from small. According to a financial survey it was found that you’re more likely to pay off your debts when you start with the smallest balances and work your way up to the bigger ones, because those which are small help you to stay motivated and keep going, until you reach your goal.
So the mantra for an ideal financial plan is simple: Start with SMALL, to reach the BIG.
- Know your Credit Score:
Those 3 digit numbers matter you a lot. While applying for any loans, the most apt eligibility criteria, which you need to match up with is to achieve a decent credit score which shall allow you get the desired amount credited to your account without much efforts.
Now, here are some handy tips which you can adapt to improve your credit score.
Pay your bills on time; (This, helps to keep a good history record of your credit), keep your credit balance to less at 20% and keep your older bank accounts activated.
- Find out your retirement amount:
It is quite funny to save for something, whose goal you haven’t set yet.
But in India, people are more cautious about uncertainties coming up in future and want to be secured enough to be able to tackle them.
The major question arising while planning for your retirement is “How much should I save for my retirement?”
Well, a substantial amount, of-course but how much?
Some financial institutes recommend that you should be saving 8 times your salary to meet your daily income needs, aiming to shoot up a double score by the age of 40, four times by age of 50 and so on…
This seems easy? Well, not really a retirement plan depends upon your need to be met further so they can be different.