Start New Year by Planning Your Finances Better With Fullerton India

We're heading into 2023, and it's time to plan your finances, budget, and investments. Start setting financial resolutions for the next year and spend enough time planning your finances. Even the most minor change in habits can lead to major disciplinary habits over time.

This article talks about financial planning for the next year and how you can leverage the power of personal loans from lending institutions to make the most of your goals.

5 Steps for Better Financial Planning

1. Create a Budget for The New Year

The first and foremost goal should be creating an achievable budget and sticking to it. It not only helps to keep the spending on track but also maintains finances in order. Also, understand where your money is going and where you can make adjustments to save more. Here's how to create a simple yet achievable budget:

• Calculate your total/net income
• List down all the monthly expenses
• Determine the average costs of each expense
• Make reliable adjustments while keeping the budget in mind
• Review it regularly

2. Pay Off Debt

The second most important step to having a good financial year is to get rid of debts. It's crucial to pay off high-interest debt as soon as you can, such as credit card debt. It serves as a significant burden that prevents you from becoming financially free. 

Consider merging any existing debts to replace variable interest rates on several loans or credit cards with a potentially affordable rate on a single loan. For this, you can go through Fullerton India's website and eligibility calculator to get proper guidance on loans and interest. Your financial life may be made simpler and financial stress can be reduced by reducing the number of debts you have.

3. Save For the Future

Everyone is susceptible to unforeseen circumstances. A financial goal that you should strive to include is to save an amount of money every month to have a bigger goal at the end of the month. Create an emergency fund and with this even have a plan for retirement. Retirement planning is always a good financial aim, and thus the new year is the perfect time to concentrate on it. An emergency fund protects you from dealing with unexpected circumstances and emergencies. Aim to save enough to cover at least three to six months of living expenses.

4. Invest and Save

To make the most out of the year, try to have a goal of making smart and long-term investments. Your investments give assurance about the present and financial safety. It's always the best time to invest your money systematically so that it has enough time to grow or compound. And after a certain point of time expand your portfolio. Investing in the stock market and mutual funds (SIP) can be a good strategy to maintain a good financial outlook.

In general, younger people should be more aggressive whereas old people should be more cautious while investing. While investing, make sure you're saving enough and have liquid cash. Set a tight budget for yourself and spend accordingly, once it becomes a habit you will no longer need to push yourself to save.

5. Take Steps to Increase Your Income

With the sudden rise in inflation and recession expected next year, you must begin financial planning from today. Whether you're currently looking for a job or even you have it, think about having a skill and monetizing it. By identifying a skill you have and the equipment and resources required to convert it into a profitable business, you can start a side hustle. Doesn't matter what your current financial situation is, you can always manage to have a side hustle and can generate money for savings.

Must Read: Personal Finance Lessons to Learn from Mahatma Gandhi

Conclusion

It is always recommended to have a strong, stable source of income throughout the year but not completely depend on it. Often, life comes with challenges that even passive sources of income cannot help battle. In those cases, you must turn to institutions like Fullerton India for a personal loan. With minimum personal loan documents required and personal loan interest rates starting from a mere 11.99%*, you can take up amounts of up to INR 25 lakhs* and enjoy financial freedom. Check your eligibility through our online calculator and apply today!