We are now at the starting of a new year, with everything happy and fresh around. New Year not only comes with a lot of happiness and new hopes, but it also comes with a new zeal to bring everything in shape. In other words, the arrival of a new year is a reminder, that it is time to buck up and get the things back to shape. While it is not easy to get back in shape regarding your health and weight, it is much easier to clear all the mess in your finances and bring everything in its right place. Sounds interesting right? It will be more interesting to do in reality. So, gear yourself, buckle up your shoes and get ready to start the New Year by taking a couple of wise decisions.
1. Check your credit record
Your credit record is the reflection of your entire credit history. All your past transactions, monetary habits, dealings etc. will be evident to you just at a single glance of the credit history. Hence, without wasting any time, check your credit ratings to understand how you have been spending in the past and what it should be in the current year. If you find the credit score to be decent, then give yourself a pat on the back and if the score is relatively low take the resolution to work on your monetary habits and increase the rating by the end of the current year.
2. Mix your investment portfolio
Your finances or investments are the assets for future. It is wise to stay invested in a wide investment portfolio. A New Year is the best time to go through your existing investment portfolio and make changes if required. While going through your portfolio make sure that it boasts of multiple investments such as savings accounts, mutual funds, insurances, and others. The richer your portfolio is, the more peace of mind you can enjoy. In case of any help or suggestions, you can consult investment experts who can come up with a customised plan for you.
3. Clear the debts and dues
Take necessary steps to clear off the mess present in your financial portfolio. New Year is the most auspicious time to get rid of all the negatives in your life and this is similarly applicable to your financial portfolio as well. Revisit the portfolio and find out the pending debts and dues which are affecting your credit history. Plan ways to reduce the high-cost debts and the accumulated dues. Initially, it might look like a difficult task, but you can easily pay off the debts and dues by taking a low-interest personal loan. You will be able to opt for a high loan amount with flexible EMIs and can get rid of the bad debts which have stained your portfolio in the past.
4. Plan for the unexpected
Health is something which is beyond your control and this is why you can’t plan your medical expenses in advance. You or your family members might fall ill at any point of time leaving you confused about how to manage the situation. To secure yourself and your family, right at the beginning of the year, plan for the unexpected conditions in advance and get yourself covered by suitable insurance policies. While a life insurance policy will safeguard you as well as your family members in the later stages of your life or in your absence, a suitable health insurance or a medical insurance will cover the cost of all the medical expenses incurred during sudden emergencies.
5. Have better control over your finances
Money slips out of grip and you have to take necessary measure/steps to keep it under control. Overspending, frequent spending, random withdrawal from ATMs, overuse of credit cards and debit cards are some of the things that immensely affect your finances. In order to have a better control over your finances keep a check on your spending habits, credit cards, debit cards and ATM usage. If you are a shopaholic, instead of spending randomly from various bank accounts, fix one specific account to make the purchases. This will help you to spend prudently without affecting your savings. Also, keep your savings in fixed deposits or invest in long-term plans to keep them out of reach.
6. Brood over your past losses
New Year is the time to fix all the mistakes and errors done in the past to pave the ground for future happiness. Hence, it is the right time to brood over the past losses and the mistakes that have resulted in such losses. In case you have taken any wrong financial or investment decisions in the past, this is the time to recheck every single point and understand what has led to the disaster. For example, if there is any stock that resulted in heavy losses in the past, you can revisit that and assess its current position, whether it can be included in your investment portfolio or not.
7. Don’t be impulsive when taking decisions
Impulsive decisions can lead to big losses. Understand this and start thinking wisely. You are the best person to decide what is good and bad for you, so have faith in yourself and go ahead. If you find it difficult to take the decision by yourself, consult with the advisors to know what will work better for you. Whatever you decide just consider all the associated factors and then take the final call. Be prepared for losses and bad times, but set a motto in mind and work towards it dedicatedly to make your financial health better and prosperous in the New Year.
8. Secure your vehicles against damages
Last but not the least, while starting your New Year, don’t forget about your vehicle. Your vehicle is your asset and its your duty to safeguard it against all types of mishaps, accidents, thefts and damages. The best way to do that is to cover your two-wheeler or four-wheeler with a suitable insurance from a reliable insurance company. Consider buying a motor insurance from a reliable insurer right at the beginning of the year to protect your vehicle from all types of accidental occurrences.
Well, these are some of the wise things that you should do at the beginning of this New Year. Give the year a good start and it will bring you lots of happiness and prosperity. So, instead of waiting any more start right away and make this New Year a joyful one in the truest sense. Have a very happy New Year!