The whole country is hitched to the Government’s ‘Swachh Bharat Abhiyan’. Are you up for the Cleanliness Drive…???
How about starting with cleaning up your Finances…???
Make it a point to clean up your Finances by considering the following points…
- Review your Expenses
Start by reviewing your Expenses – how much of your spending is need based & how much is unplanned or not required. Take a look at your Credit Cards Bills. Don’t take too much of Credit. Reviewing your Budget from time to time is mandatory with changes in your Income & Goals.
- Review your Investment Portfolio
Your Investment Portfolio is a mixture of Investments with different level of Risks & Return. Come out of the Investments that are not doing well. Your Portfolio depends upon factors like your age, risk profile, return expectation, Income & so on. Your Portfolio is churned when any of these factors take a turn. Thus, make it a part of your cleaning ritual to review your Portfolio whenever required.
- Create your Financial Calendar
Categorize your Short, Medium & Long Term Goals & choose suitable Investments to accomplish them. Also, make a note of important financial dates such as premium payments or deadline for tax filing. Make sure to stick to the dates.
- Close dormant accounts
Holding unused Bank Accounts can be expensive. If you have an old account which has not been used for a while you need to close it to avoid penalties. Clean your Finances by closing down such dormant accounts & consolidate your Funds in Active Accounts.
- Check your Debts
Debts are an essential component of Personal Finance& they can help you attain your Financial Goals. However, taking more Debts can be burdensome! Just don’t go on taking Loans to accomplish your Goals. Make sure your Debts are in sync with your Goals. In case you have multiple Loans weighing you down, set a priority list with the most expensive ones on top.