In just 8 days, we say goodbye to another year! While we can hope for a better year ahead, even before planning for 2022, it is important to take stock of all your tasks, plans, and achievements in 2021 and use that to plan for the next year.
This process can be slightly overwhelming but we have your back. Here’s a checklist of the 4 questions you need to answer before the year ends so you can ace your financial game in 2022!
1. Have you Evaluated Your Finances Yet?
While you do not have to take a look at every minor spend, you will have to monitor your assets vs. liabilities.
Track how much you have earned overall (includes income from salary, investments, properties, if any) and compare this with your expenses (monthly bills, premiums, EMIs, etc.), especially the large and unexpected ones.
This will help you find out where you stand financially.
2. Did You Review Your Investment Portfolio?
You do not have to be a seasoned investor with a large or diverse portfolio to do this. Even if your investments only include an FD or mutual funds then take a look at them and evaluate if the returns are satisfactory.
Have your investments grown? If not, what are the next steps you can take? Remember, you can always find other investment avenues that ensure better returns based on your risk appetite.
3. Have you Invested in Tax-Saving Options?
Tax savers are one of the best ways to not just save on your taxes but to also cultivate financial discipline. There are three months left before the current financial year ends, so you can still invest in the relevant tax saving options.
And if you have not filed your ITR for the current assessment year, you need to do that soon as the deadline is 31 December, 2021. If you are new to filing taxes, here’s a quick guide for you
4. Have you Planned for Your Future?
We all have different financial goals but planning for it is the first step. These can range from large expenses such as investing in a property to a smaller one such as funding a vacation. Regardless of how much you plan to spend, it is essential to plan for it.
You can divide your goals into short term (a few months to about 3 years) and long term goals (5 to 10 years or more) and start planning for it. Remember, all major decisions start with one small step.
While the financial year in India is from April to March, the end of a calendar year does motivate one to plan for the upcoming months. But before doing so, it is important to take stock of how your finances were in the previous year.
If you have made mistakes such as investing without adequate research or over spending on your credit cards, then don’t worry. You still have time to rectify this and prevent the situation from repeating again.
Paying off your debts at the earliest is important and if funds are a problem, you can always avail a personal loan within 24 hours from Money View.
So ensure that you answer the above questions and use that to plan adequately for your future.
Do you have any end-of-the-year financial rituals that you follow? Let us know in the comments below!