Jan 02, 2017 3 min read

10 Tips to Make 2017 a Financially Sound Year

If you want to make 2017 a financially sound year, then this blog is a must read for you.

No matter how disciplined we our in spending the money, we still always lack the finances at a certain point in time, and the main reason behind it is the ineffective management of money. Setting up a resolution for the new year can help us a little in managing the money, but we need to stick to them for accomplishing or goals. So here we have provided the ten best tips for making 2017 “A Financially Sound New Year.” Take a look at them!

  1. Set a Budget for Every Month:- Planning is the initial stage in the management process which helps in the effective and efficient utilisation of the resources to achieve the set goals. Budgeting is another name for planning the utilisation of financial resources to maintain stability. By setting up a budget at the beginning of the month, you would be in a better position to effectively utilise your money. Moreover, it would enhance the savings as well.
  2. Stick to the Set Budget:- It is just not about setting up a budget, you need to stick to it and implement it the way you have planned as then only it would give productive results. Just like implementation, directing and controlling are crucial tasks after planning. Moreover, sticking to the set budget is important for effective management of money.
  3. Note Down Every Single Penny You Spend Extra:- It is important to have a proper record of the overall spendings done out of the budget plan as it helps in designing a better plan for the forthcoming months. Thus, you must write down every expense you make apart from the ones set in the budget plan.
  4. Reduce Your Debts:- Debts make your financial status highly ineffective and hence it is recommended never to have too much of debts. So this time, if you own debts or borrowings you must try to diminish them to the extent that they do not cause ill-effects to your financial stability.
  5. Try to Avoid Borrowings This Year:- Borrowings lead to burden due to which the entire money management mechanism gets disturbed. You must try to avoid your borrowings this year with a proper plan and budgeting.
  6. Do Make an Emergency Fund:- Uncertainty can knock the doors anytime without alarming. Therefore, it is important to have enough funds maintained to overcome the bad times without the lack of money. The emergency funds can be created easily using the liquid mutual funds which provide better returns, high liquidity and proper fund utilisation for achieving short-term or instant goals.
  7. Increase or Start Your Retirement Savings:- It is always better to plan for the future and save early. So if you have an investment for retirement, then try to increase savings in the same. And in case you have yet not started your retirement planning, then give a start to it this new year. With this, you will have savings for living your retired age with comfort.
  8. Look Out for Free Money:- We find many offers on sale and other discounts while buying amenities. We must take the benefit of the same to save on our money. This helps in managing the fund effectively.
  9. Set Up a Long-Term Financial Plan:- Investment helps in mitigating the chances of getting overburdened and in accomplishing financial goals. You must set up a long-term investment plan this new year to earn the benefits of compounding and gain huge wealth in the future.
  10. Design Your Portfolio with Small-Cap Funds:- The little spices add great flavor to our food. The same way small-cap investments add high worth to the investment portfolio. As the small-sized companies possess the capacity of generating greater returns when compared with the well-established ones, the probability of creating corpus enhances by adding the small-cap funds in the portfolio.

These ten important tips can help you make your new year financially sound and stable. So if you want to build better future and make this year growth-oriented, then you must follow these tips efficiently.

Further, if you need assistance for any financial advisory solutions, or need help in creating plans for your investments, you must get associated with the advisors' team of MySIPonline; where we have well-experienced members having sound knowledge in the stream of financial planning.