9 Objectives for The New Financial Year
While the Calendar New Year is the perfect time to form your New Year Resolution. The Financial New Year also allows us to make our Resolutions. And no, it’s not about reading books or joining a gym. It’s about staying ahead of the curve and managing your Finances in a proactive way. It’s time for you to form your New Financial Year Resolution.
What are the Financial Resolutions?
While there are lots of fun Resolutions for a Calendar New Year, Financial New Year Resolutions will be far more impact-full and worthwhile. The beginning of a Financial Year allows Individuals to ask this very important question, “What do I do with my money?“.
Form a Budget that you’ll stick to
How many times have you planned something and it hasn’t gone as per your plan? More times than you might remember, right? Forming a realistic Budget is very important as “A Budget tells your money where to go, Instead of wondering where it went“. The benefits if one follows a Budget will always outweigh someone who didn’t.
Understanding your Tax Liability- Budget 2020
Budget 2020 mandated several changes in Chapter VI A Deductions, abolishing the Dividend Distribution Tax (DDT), Applicability of Tax Audit, and Change in the criteria for Residential Status.
Re-balance your Portfolio
Ending of the Financial Year brings an opportunity to re-balance your trading portfolio. Re-balancing Portfolio is essentially buying and selling of stocks until the desired level of asset allocation is reached. Traders can also reduce their taxability by setting off their realized losses against realized profits. This method is called Tax-loss harvesting.
Pursue your growth plans
A new Financial Year brings an opportunity to rethink, ‘What are my Business Goals?’. It could be expanding to a new geographic, or extending the product line, deciding a growth plan for your business, and acting upon it is very important.
Raise Funds
For a startup, funds are like the ‘Apple of Eden‘. Hence, as a Startup, deciding whether you need an Investor or not is extremely detrimental. Having decided, finding the correct investor, planning the funding, and allocating these funds in a way that brings the best output needs to be done.
Start Saving
You might have read “Never Spend your Money before you have earned it“. As good as these quotes sound, it forgot to mention a very important step, i.e Save before you spend.
Becoming Debt-free
Debt has become very common for Individuals and Businesses. We understand, sometimes businesses/individuals might seek capital in the form of debt, and it might be the right thing at that time. But it doesn’t mean that businesses/individuals should allow debt to pile up.
Buy Insurance
The idea of Insurance has exploded in the past decade and it has become very mainstream. Insurance is a way to ensure that in an unwanted scenario of loss, your interests are covered and damages are mitigated. You can also avail Tax benefits of INR 1.5 Lakh under Chapter VI A while buying Insurance.
Start Investing
“Don’t work for money; make it work for you“. And the logical way to do that is via smart investments.
So there you have it. Our 9 New Financial Year resolution. Following these resolutions will undoubtedly bring order in your finances. Which will allow you to lead a happier and hassle-free life?
