The new financial year has just begun and it’s the best time to organize your finances to save more tax, save more money and invest wisely while feeling less brunt on your spending power. Sit with your family members or spouse to discuss your financial position and financial goals. At the end of the day, we all work for money, and leaving jazz aside money indeed is one of the most important pillars of a good life. Here’s a 3-step guide to kickstart building your money strategy for the new financial year:
1. Look back & Learn
Look back at the past few financial years to gauge where you did well in investing and saving money, and in which year you fell miserably on your financial goals. It will give you a clear picture of what to adapt and what to avoid in the new financial year 2018-19.
2. Time to Trim
Trim your monthly subscriptions, club/gym/kitty memberships or even hobby classes where you didn’t go religiously last year. You’ll either save big or utilize these memberships and subscriptions to the fullest. Trim your weekly food outings and takeaways to keep your physical as well as financial health brimming.
3. Set Financial Goals
Lastly, set new financial goals for FY2018-19. Ensure you save at least 20% of your take-home before the start of the month and arrange your expenses within 80% of your salary. Put an auto-sweep option on your savings or salary account wherein anything on top of a limit that you set will be transferred to a linked savings account, rendering limited money at your disposal and saving automatically without lining up in queues or online.