Today, everyone is bombarded with information about money, investments, personal fiancé!
Too many sources via various platforms & mediums provide information on these topics.
So, this new year, lets be precise & act on our money management the way it is required actually.
Read through the following & understand what you can do to redefine your money scene this year!
Review your existing portfolio of personal finance elements:
Personal finance elements means & include your current investments, assets, liabilities, debts, insurance policies etc.
People often invest & forget to review or they don’t get time to review their money front.
This year, review all of it.
Remove all those elements which are no longer serving good for you. They can be replaced with suitable ones which can lead you for better returns in future.
- Invest as per your goals:
Set up your future goal & then invest accordingly. This will help you to better review & judge progress of your investment.
This also helps you to define your investment tenure & also makes you disciplined with investing.
Investing randomly may not prove right for you always.
- Stay away from fancy, quick gain providing options:
We all want high returns on our money! Many people still fall pray to investment options which promote themselves as products which give quick gains & high returns.
Such investment options are often not recognized by SEBI, (the market regulator) too.
This year 2023, stay away from such products.
- Keep it Simple:
When it comes to your investments, keep it simple! Invest regularly as per your goals, invest in products which you understand about, review regularly & be disciplined.
This year, keep your money scene simple to handle for you!
- Be mindful about real estate investments:
In last year 2022, real estate shown double digit demand in all key micro markets. Re-opening of markets post Covid 19, restarting of work from office routine, changes in employment of many due to covid, has made real estate a market in demand again.
However, it is an asset which is tangible, has high returns potential too but it also carries many taxes, duties, maintenance charge. It is not a liquid investment & comes with a huge cost.
I so ask you to be mindful with real estate investments. Keep the one which provides you shelter of your own.
- Glittering scenes of gold:
In the year 2022, gold outshined! Physical gold provided 14.27% returns in the last year. This has made many to jump for gold investments. However, this should not be the sole reason to invest in gold.
This year gold performed well due to many reasons like volatility of equity markets, geo political tensions, rising inflation. Its performance is case sensitive.
Gold needs to be invested for hedging. This means it can give some cushion to our total portfolio when & if other asset classes are not performing.
- Be aware of tax implications:
Income tax is a duty of everyone to pay when its due & liable. Every asset class & investments come with different tax implications.
Being an investor, you take knowledge of every such implication which is applicable to your investments. This will help you to save on taxes, invest in options which are tax friendly to you.
- Be mindful while spending:
Everyone talks about investing, getting higher returns & accomplishing goals, but along with this, we must know & implement how to be mindful while spending.
Today, we have so may attractions to spend money on. Also, some things have become integral part of our life on which we have to spend money e.g. charges of OTT platforms, frequently changing of mobile phone devices often, charges of different utility devices at home.
This, year, make a list for big purchases & invest for it. Buy what is required only otherwise you will waste your hard-earned money on things you don’t need & you will lose your potential returns which that money would have given you by investing in right instruments.
- Stay away from ‘buy now, pay later’ schemes:
Today, we have become impatient & want everything to posses & show up to the world!
To boost this, many schemes offer ‘buy now, pay later’ framework. Big purchases or small purchases, you can make by opting for the platform. They pay on your behalf & later they ask you to pay.
They come with their own aggressive marketing techniques & make people believe that, “they can afford even big things which they think they can’t”!
But remember, such platforms charge for everything they offer you. Such platforms charge anywhere between 20%- 25% as additional fees on non-dues.
Stay away from such schemes because, if you opt & fail to pay them, then this can affect your credit score.
Also, you slowly start falling for impulse buying & loose liquidity.
Every new year brings opportunity to change something from our life & behavior!
This year, lets bring change to our Money Scene!