As we welcome the new financial year, here are a few pointers to kick-off FY 22-23 like a pro! We’ve prepared the ultimate checklist for you.
Just like that, we start the new financial year. Did you achieve the goals you’d set for yourself last year? If you did, more power to you! However, if you missed, another opportunity to right your financial wrongs presents itself now. Perhaps we could help you a little. Here’s your ultimate checklist for the new financial year. Let’s go!
What You Don’t Have, You Won’t Miss!
It’s human nature to spend more when funds are easily available. We all do it. This could easily eat into what could have been savings, earning interest for you. The first thing you should do this year is to review your income and your spending and make a note of how much you really need every month. A little bit of extra spending is perfectly fine but not too much.
Set up an SIP or just transfer funds to your savings account on salary day. A bit of willpower and telling yourself that those funds are out of bounds will hold you in good financial stead. The popular 50-20-30 rule (50% on needs, 20% on wants, and stashing away 30% savings) is a great start. If you can increase the percentage of your savings, you’re already winning!
Additional Reading: 5 Surprising Signs That You Need to Re-Evaluate Your Financial Planning
Let’s Look At Your Credit Cards
Credit Cards are pretty awesome. They’re like friends who lend you money and also give you a bunch of other benefits/rewards without all the awkwardness that comes with borrowing. It is, however, a little tricky managing the relationship.
Credit Cards come with interest-free borrowing of up to 54 days if you time your purchase right. The problem is when you’re a little reckless, start accumulating debt and don’t pay in full. If you have Credit Card debt, it’s best to pay it off and enjoy the benefits. The money that you save on the interest can be put to good use. Another SIP perhaps? You’re welcome.
Additional Reading: 4 Cornerstones of Financial Literacy
Report Reviewing Time, Amigo
Your Credit Score is very important. It’s that bridge of trust between you and your bank. If you intend to borrow any time in the future, a 700+ score will hold you in good stead. Not only will you actually get credit, you’ll also get a good interest rate. However, a lot of people assume that their score is good since they haven’t missed on any payments and have been managing their finances well.
However, a lot of people report errors in their reports. That’s why it’s important to check your credit report every now and then. An erroneous entry might just be holding you back and pulling down your score. You can report this to your credit bureau and have it rectified. BankBazaar provides this service via Experian for free. Go ahead and check.
Review Your Portfolio
It’s been another turbulent year for finances. Some sectors performed well and some didn’t. Did you take time to review your investment portfolio? Yes? Great! No? Now is a great time!
If you have a financial advisor, get on a call and start reviewing. If you’re a pro, it’s time to put your powers to good use. Lock in gains from the sectors with the best returns. Move your money from the weak ones and monitor everything closely. You should be doing this every few months to get the best out of your money. Stay invested for the long run to see maximum gains – refrain from withdrawing your money in panic at the slightest sign of market turbulence.
Additional Reading: Top Credit Cards to Save on Fuel in 2022
There we go. While there are many other things to consider, these should get you https://blog.bankbazaar.com/top-credit-cards-to-save-on-fuel-in-2022/?WT.mc_id=BLOG|your-ultimate-checklist-for-the-new-financial-year|TX&utm_source=BLOG&utm_medium=social&utm_campaign=your-ultimate-checklist-for-the-new-financial-year_TXstarted. One other thing we can definitely help with is finding the right Credit Card. Cashback alert, hello! You may be pre-approved! Just click the link below.