As the new financial year has started in India, it`s crucial to plan your finances wisely. The sooner you begin, the more time your money gets to grow, resulting in better returns. Don`t wait until March 2024 to make hasty investment decisions. Seek guidance from investment advisory services, such as Ajmera x-change, to make informed investment decisions and maximize your returns.
Here are some useful tips to strengthen your finances in the new financial year 2023-24.
1. Analyse Your Current Financial Position
Start the year by evaluating your current and expected total income, savings, and investments vis-à-vis expenditures, debts, and other liabilities for this financial year. Do not forget to keep aside money for an emergency fund – it should be equivalent to at least six months’ salary. This activity will help you to align your investments with your financial goals.
2. Manage Your Debts and Liabilities
When borrowing money, prioritize early repayment and avoid taking on more debt to prevent financial strain and loss of peace of mind. Use the risk meter to evaluate your investment options and curtail unnecessary expenses to pay off debts and make wise investments.
3. Make Investments
If you invest your money in April, you will earn returns and save tax for the almost entire financial year. You can reinvest interest income, redemption amount, and tax savings to maximize your savings.
You can invest in the following options depending on your financial goals and risk appetite:
Fixed income instruments such as bank deposits, National Savings Certificates (NSC), Public Provident Funds (PPF), etc
4. Diversify Your Investment Portfolio
An ideal portfolio for investors, whether conservative or aggressive, should have a healthy mix of fixed income, equity, and debt instruments. This approach, recommended by equity brokers, can minimize the risk of losses and maximize the potential returns.
You can also diversify investment across different tax-saving options such as 80C investments, health insurance premium (80D), education loan repayment (80E), home loan interest payment (section 24), house rent (80GG), etc.
5. Pay Attention to Insurance
Nothing is more important than your life, health, and family`s well-being. So, make sure to allocate a part of your savings to life and health insurance. Think of insurance premiums as an investment in your future and protection against life’s uncertainties.
6. Organise Your Financial Records
You need your financial details to renew the investment or redeem interest but you can’t find the required document or transaction record. Has this ever happened to you? This financial year, keep your paper and digital financial documentation in order. This will also help your family members to access them easily as and when the need arises.
If you need professional guidance to plan your new financial year 2023-24, Ajmera x-change, a leading financial services platform in India can help you. We can assist you in effective investment and tax planning to make the most of your money this year.
Get in touch to know more.