It is the month of December. Just 22 days left for the New Year. You must have already made plans on how to celebrate the New Year. You could usher in the New Year, with a trip to Goa. Perhaps even a trip abroad. Go to New Zealand or Australia and be one of the first, to welcome the New Year.
You would have already purchased a new dress or a new shirt, for the New Year. Matching shoes to go with your new dress….a new watch…Welcome the New Year with a new smart phone? Bought tickets for the New Year Bash?
Yes…Preparing for the New Year is something you would do, well in advance. But have you done something more important? Are your finances ready for the New Year?
This is the first job you need to do, to welcome the New Year. Find where your life insurance documents are and keep them in a safe place. This is very necessary for your family to make hassle free claims, on the life insurance policy. Also keep the documents of your health insurance plans, home insurance plans and also auto insurance plans, in a safe place. Make copies of all these documents.
If you have physical shares (share certificates), you must demat these shares. Storing shares in an electronic form, ensures they are safe from damage and cannot be stolen. Keep your FD receipts, bank locker receipts, Post Office deposit receipts, PPF and Senior Citizen saving scheme receipts and Mutual fund receipts safe and locked up.
If you have made a will, get it registered and stored safe and secure.
You are an impulsive shopper. You walk into a shop or store and buy whatever you wish. You might have wasted money on a lot of unnecessary items. You can’t help it. That’s the way you are…..Sure, you have wasted money all these years, but the New Year, is the time for reform.
Make a New Year resolution, to keep your spending in check for the New Year 2016.
You need to maintain, at least 3 to 6 months worth of living expenses, in your emergency fund. The word “emergency” in emergency fund, means you need to set aside money, for an emergency.
Check your emergency fund. If the money in your emergency fund is not sufficient for at least 3 to 6 months worth of living expenses, welcome the New Year by adding more money to your emergency fund.
If you are married and have children, make sure you have life insurance and a family floater health plan, to take care of yourself and your dependents. Your life insurance cover needs to be sufficient to take care of your dependents (spouse and children) and give them a decent quality of life, even in your absence.
If you feel your life insurance and health insurance cover is not enough, then increase it before the New Year.
Has too much of debt, put you in a debt trap? Struggling to pay back EMI’s on your personal loan, home loan and your car loan? Have your credit card dues just exploded? Make a decision to pay back all your credit card dues in time, in the New Year. Be regular with your EMI payments and make a New Year resolution, to maintain a good cibil score. Clean up debt. Rid yourself of the debt trap.
Enough of the lecture. Get yourself financially fit for the New Year.
The research team at IndianMoney.com comprises of certified and experienced professionals who share the company's vision to make every Indian financially literate by equipping every Indian with right and unbiased advice. IndianMoney.com research team provides newsletters, articles, videos and FAQs on various financial products and concepts only to help you make wise financial decisions.
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