We celebrate two birthdays. One as per the English Calendar and other as per the Indian calendar. But we celebrate 3 new years. One starts as per the Indian calendar, one as per the English calendar, and one financial year.
We are approaching the new ears as per the English calendar year. One more new year and one more chance to reviews all our goals, resolutions etc.
“Tomorrow is the first blank page of a 365-page book. Write a good one.” Brad Paisley
This is not a new financial year. We are about to enter the new calendar year. It is a good reminder of the new financial year 3 months down the line. You can do your financial hygiene check-up.
Financial Plan in Place
Do you have a written financial plan in place? If not it could be your New Year resolution to make one.
Clearly defined goal
Do you have a clearly defined wealth creation place in place in your financial plan?
Goal centric action plan
Have you defined an action plan to meet your wealth goal?
Adequacy of Life Insurance
Have you reviewed your life insurance adequacy? Enhance the cover if necessary. Know the riders available in the market which suits your need.
Adequacy of Health Insurance
Your health insurance policy is realistic to meet the rising cost of healthcare? Have you evaluated the critical care policy?
Maintaining books of accounts
Do you maintain your books of accounts? If no, then plan to maintain books as soon as possible?
Have you made a Will? If yes, all beneficiaries are alive and valid?
If no, make one.
Long-term and short-term investments
Have you differentiated between long-term and short-term investments? Investments to hold for the long term. Investment to review periodically and liquidate in case of emergency.
Getting rid of dead investments
Review all your investments. Get rid of dead investments. Get rid of risky investments not appropriate with your goal.
Explore the possibility of prepayment of your debt.
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Allocate all your assets as per your risk appetite. Allocate assets as per your long-term and short-term need.
Close extra bank accounts
Unnecessary bank accounts hold up a good amount of money and required administrative actions while filing an income tax return. Bank also debit charges for not maintaining a minimum balance.
Close all your unwanted bank accounts.
Nominate in all your investments
Nominate someone you want to in all your investments, financial as well as real estate.
Tax saving investment for the financial year
Have you planned to invest for the tax saving for the current financial year? Is the target achieved? If no, plan to make it complete by March 2019.
Does your spouse know your financial information? Do your family members know where all your Original investments documents are kept?
Discuss and disclose your financial details to your spouse. She should be aware of all your assets and liabilities. She should be aware of whereabouts of all your financial documents.
If she doesn’t understand, educate her but do not ignore.
Make a goal to follow the best practice in the matters your personal finance. Maintain your financial hygiene and review plans every year.
“What the New Year brings to you will depend a great deal on what you bring to the New Year.” Vern McLellan
Review your financial hygiene, make it simpler, make it complete, and involve family members.
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