5 Financial Resolutions for 2018
Since the year-end is a time for reflection, take some time to welcome 2018 with a well-defined financial plan. As a part of your New Year’s resolution, be sure to check whether your savings are on par with the investment options you have considered. If not, it may be a good idea to make certain changes in your investment portfolio.
In 2018, take some of the following financial resolutions that have proven to deliver significant results:
5 Resolutions for a Better Financial Future:
1. Consider New-age Investment Options:
Traditional saving tools may not always be the best investment avenues. Even if they offer fixed returns and corpus guarantees, they are only recommended for short-term investments. If you use them over the long term, traditional investment options might prove ineffectual for financial growth.
Taking calculated risks is necessary if you want to save enough for long-term goals like retirement. These options, like mutual funds, are what will offer greater returns through compounding. It is important to think about creating wealth, rather than preserving capital. For example, investing in equity funds for a 10-year period can provide significantly-higher returns as compared to traditional options like a Public Provident Fund.
2. Prepare a Road Map:
Start 2018 by determining how you will achieve your specific goals. You will have to think about factors like:
- The time left for achieving a particular goal
- The inflation-adjusted amount you will need to earn
- The monthly savings that will help you attain the goal
Your children’s education and your own retirement should assume top priority when you create an investment roadmap. Mapping your goals can help provide for your children and yourself in a tangible manner. It allows you to focus on selecting the right instruments so you can benefit in a given time frame. Goal-mapping also saves you from losing money due to market volatility. One of the best ways to do this is through Systematic Investment Plans (SIPs). They can be used to create a portfolio that caters to your individual goals. Through SIPs, you can opt for aggressive growth of funds, or choose stable returns, based on your preference.
3. Boost your Investments:
Choosing the right investment option is only the start. It is more important to increase your savings every year, according to your income growth. For example, if you are considering gold investment in any form, you have to ensure that it increases by at least 10% per year for the next 25 years. This makes a remarkable difference in your retirement income and guarantees a tidy sum of money for incidentals.
4. Understand How to Save Tax:
Not utilizing every tax-saving option available to you may lead to loss of thousands of rupees per year. This is money that could have been invested systematically towards the achievement of life goals. In 2018, make a resolution to stay updated on all the taxation norms, specifically those that affect your savings. For example, if you invest in Equity Linked Saving Schemes, you can create long-term wealth and save tax under Section 80C. There are many such options to explore, most of which offer tax benefits.
5. Invest in Fixed Deposits:
Fixed deposits (FDs) deserve to be a part of every investor’s portfolio. They offer a great combination of safety, stability, and good returns. Fixed deposit interest rates are much higher than savings account interest rates, which usually provide just 4% interest on your money. FDs provide a flexible tenor up to 60 months and an online FD calculator for precise and easy estimation of returns. You can also choose between a cumulative or non-cumulative fixed deposit, depending on whether you require periodic returns. A fixed deposit is an excellent all-around option for all types of investors.
Make 2018 a year of healthy, profitable decisions by opting for a Fixed Deposit with Bajaj Finance. As one of your five financial resolutions invest in an FD that offers the best interest rates, along with an online account management facility and minimum documentation needs.