Financial Planning 2022: Review Goals, Plan Budget To Secure Your Future

New Delhi: It’s the season of new year resolutions when you make new promises to yourself and design ways to make them work. One such important resolution is reviewing your financial goals and forming financial habits that go a long way to make your future secure.

By the time year ends, it’s time to reflect on the finances in our lives because it is one of the most important aspects which can’t be ignored.

Here is a checklist that you will need to go through in the coming year. This will help you set your financial life in order for the coming year.

Focus On Budget: It is crucial for you to understand the financial requirement and accordingly prepare a new budget exercise based on the present situation. Find out where you stand in terms of income and expenses because that will help to fix the issues. For this, you need to monitor spending, especially those that take you beyond the budget. Going by the thumb rule, everyone should have at least six months of income saved for emergency purposes. Once you create an emergency fund, redirect a minimum of 20 per cent of your income for investing in building long-term wealth.

Take Stock Of Financial Goals: It is important to review the financial goals that will help you remain on track. Assess if it’s on track and you are in the apposition to meet your tax saving and retirement benefits. Besides that assess the need for children’s education, marriage, holidays, etc.

Look At Investment Portfolio: The investment portfolio comprises investment options such as fixed deposits, mutual funds, stocks, national pension schemes, gold, and real estate. It is important to align the portfolio to asset allocations keeping in mind your savings and investments in 2022. 

Review your investment portfolio, especially the equity, and mutual fund portfolio, and check if they are aiding your goals, taking into account a very conservative return expectation next year.

Debt Repayment Goal: Also, make sure to repay all your costly debts such as personal loans or credit card bills. Try to aim for a debt reduction target in alignment with the funds available to help reduce these loans. Certain debts like home loans are low-cost and offer tax benefits. Hence, make sure that you plan your debt repayment goal in a way where you set the higher cost ones first before you work towards settling the home loans.

Check Family’s Insurance Coverage: One should always take stock of comprehensive coverage on life, health, car, and other risks. Reviewing this ensures that you are up-to-date on your risk coverage. If you expect a change in your life, including a change in job, newborn kid, marriage, etc., your risk cover requirements may change.