April 1 is the start of the new financial year. Just like you have new year resolutions, you can also make some Financial Year resolutions. Here are a few steps that you can take so that the year ahead is smooth from a financial perspective -
1) Get out of bad investments - Are there any investments that are losing money? Check the prospects of these assets. If there is no potential for increase in value, then sell those investments. It is better to lose some money by selling off than getting your money stuck in a assets that are losing value. Two years down the line, you would be making an even bigger loss. You can use the capital to invest in a better performing instrument.
2) Plan your taxes for the financial year - It is important to do tax planning at the beginning of the financial year. Decide which instruments you want to invest in. If you plan in advance, you will invest in assets that suit your risk profile and are appropriate for your financial portfolio. Many people ignore planning for tax at the beginning and end up paying more tax. Else they buy products which are ill-suited for their investment profile.
Submit investment proofs in time to the employer.
If you are a senior citizen who does not have to pay taxes, ensure that Form 15G and Form 15H are submitted.
4) Be more disciplined - You can resolve to be more disciplined by following -
File tax returns before the last date of filing.
- Pay credit card bills, utility bills and premium payments before the deadline.
- Make sure the EMI cheques are in order. The bank instructions for debit are in order and not expired.
- Take a look at the previous year. Did you spend unnecessarily or make impulsive purchases. Make a resolution to avoid these mistakes.
It helps to be proactive and do what is necessary in your financial life instead of waiting until the last minute. You will be aware of your finances and also be in control of them. If there are any issues, you will be able to find them beforehand and have time to resolve them.