Updated January 4th, 2024 at 13:08 IST
Ready for financial success? Explore practical resolutions for 2024
Here are five key financial resolutions that can help shape a more secure financial future in the coming year.
As the clock ticks down to the beginning of 2024, experts suggest individuals to gear up for a fresh start in their financial journeys. In the spirit of securing a more prosperous future, here are practical personal finance resolutions that can shape a resilient financial outlook for the year ahead.
One fundamental principle of sound financial management takes centre stage as we enter the new year – diversification. Experts urge investors to assess their current portfolios, identify opportunities to spread investments across different asset classes.
"The year 2024 calls for a meticulous review of your investment portfolio, identifying opportunities to spread assets across different classes such as stocks, bonds, and real estate. By diversifying, investors can mitigate risks associated with market volatility while enhancing the potential for sustained long-term growth," said Amit Gupta, MD, SAG Infotech.
Regular goal reassessment
As life unfolds, so do individual financial aspirations. The resolution to regularly reassess both short-term and long-term financial goals ensures that one's financial strategies align with evolving priorities.
"Whether saving for a home, a child's education, or building a retirement nest egg, a consistent evaluation of financial goals allows for strategic adjustments, ensuring financial resources are channelled towards what matters most," Gupta added.
Policy awareness for prosperity
Government policies wield significant influence over personal finances. Resolve to stay informed about changes in tax laws, retirement plans, and other financial regulations. A clear understanding of policy shifts empowers individuals to make informed decisions, seizing potential benefits or making necessary adjustments. Consultation with financial advisors can provide additional insights into policy changes affecting financial planning.
Maximise tax efficiency
Taxes play a pivotal role in personal finance, and optimising one's tax strategy can lead to substantial savings. "In the quest for financial efficiency, resolving to review the current tax situation becomes imperative. Identifying opportunities for tax efficiency and exploring investment options with favourable tax implications are steps toward maximising returns and retaining more funds for future financial endeavours," said Arpit Suri, CA, personal finance expert.
Prioritise emergency preparedness
While diversification and policy awareness are crucial, financial preparedness for emergencies is equally paramount. Unforeseen events such as job loss or medical emergencies can significantly impact finances. Resolve to assess and enhance your emergency fund, ensuring it covers at least three to six months of living expenses. A robust emergency fund acts as a financial cushion, providing peace of mind and safeguarding long-term financial goals during challenging times.
Published December 31st, 2023 at 18:50 IST