New Year Financial Resolutions: Use These Tips In 2024 For Financial Stability

Welcome 2024 with a comprehensive financial plan, tax optimising techniques, an emergency fund and more strategies.
New Year Financial Resolutions
New Year Financial Resolutions

As 2023 draws to a close, investors or enthusiasts of financial freedom are seeking new ways to balance income and expenditure, settle debts, and bring in more money. However despite these perennial resolutions, execution may have faltered because of a lack of principles guiding your thought.

Firstly, using these principles draft a comprehensive yearly financial plan. Here are such principles or financial tips.

Investment Diversification

The journal will help you to choose the proper investment avenue and how to diversify. Diversifying your funds across various assets like stocks of different market caps and bonds reduces risk exposure.

Evaluate your portfolio and diversify to hedge against market volatility. If you’re thinking for the long term and ready to take a bit more risk, a more aggressive strategy could be useful.

If you have many short-term goals coming up, a cautious approach with more allocation to debt instruments is suited. 

Balance Income and Liabilities

Explore avenues to diversify income streams, with a blend of fixed and variable earnings. Here also journaling financial objectives and taking a call based on your needs is crucial to determine where to invest for income.

Calculate EMIs, and earmark this year's repayment targets. Define parameters for credit usage and layout strategies to manage and reduce existing debts. Remember to keep a credit utilisation ratio under 30 per cent.

Emergency Fund & Bima Vistaar

Commit yourself to save 20 per cent of your income consistently and create an emergency fund or bolster existing reserves. our emergency fund to cover three to six months of living expenses, shielding against unforeseen financial setbacks.

It is a must to allocate resources to healthcare. Notably, IRDAI is planning to launch Bima Vistaar at the start of 2024 where one can get life, health, and property coverage in a single affordable policy. So one can consider saving some money to purchase Bima Vistaar.

Tax Optimisation

Review your current tax payments and explore tax-efficient investment avenues or shortcuts to reduce tax burdens.

For instance, there are many strategies for taking the help of your family members. It can be investing via a Non-Working Spouse or opening an FD in your parent's name.

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