You may be someone who makes New Year's resolutions or someone who firmly believes they are a waste of time. However, it is important to ensure your financial health is sound. Here are financial resolutions to take in 2024.
Get health insurance: “Protect yourself from rising health costs while saving some tax. What's more, the younger you are when you buy health insurance, the bigger the savings on your premium,” says Lavanya Mohan, a Chennai-based chartered accountant.
Recheck subscriptions: “Cut down on discretionary spending, subscriptions are usually a black hole. Take a look at all that you're paying for and see what's necessary and what's not,” Mohan says.
Should you bump up your emergency fund? “If you haven't gotten a savings fund already, build one in 2024. If you've one, re-evaluate if it'll be enough to sustain you, given inflation,” she adds. “Lean mark your mutual fund, this can be your emergency fund, instead of dipping into your existing emergency fund,” says Anant Ladha, founder, of Invest Aaj for Kal.
Look at all of your transactions every quarter: According to Ladha, “tracking your expenses every quarter is important; especially to rule out any vague expenses or expenses that cannot be explained. Try to keep these in check, reverse them as far as you can.”
Don't wait till the last minute to show investments while filing taxes: “Complete your investments by January. Sometimes, when an investment is made at the last minute, say March 31, sometimes it gets registered on April 1. Avoid this confusion,” Ladha says.
Make your goals in terms of investments you want to do: “Maybe you want to pay off your debt or boost your credit score and so on and work towards it. Review this goal every month,” he adds.
Use cash instead of digital payments: “Be it a small chikki from the nearby tapri, or coffee with friends, make your transactions in cash instead of using your credit card or a UPI app. It will help you keep track of your expenditure better, he says.
