The start of a financial year is crucial for every one of us just like the calendar year. During the start of every calendar year, we love to make resolutions and plan important things of our lives. At some point in time, you must have planned to study harder to fulfil your goal to study abroad or decided to get fitter and healthier, so on and so forth. Let’s start doing the same at the beginning of every financial year too. Utilize this time to think of all the financial decisions that you made last year (if any), what went well and what could have been better. And if you did not do anything about your finances last year, then it is the best time to start thinking about it this year.
First step is to analyse – how much you saved, was the expenditure and savings as per your plan, did you spend well or went over the board, ask these questions to yourself to work on the next step successfully, which is planning.
List down the goals that you have for the year ahead. This list should include both long-term and short-term goals. For instance, say you would like to take a short trip with your friends by the end of the year or maybe plan to study abroad in the next couple of years. Start planning for all your finances accordingly. Are you thinking right now that how can you start saving for your study abroad plans, will your savings be enough to fund your dream course in the USA? The answer to this is, yes, an education loan is an ideal way to take care of all your academic expenses. But if you plan well, you will end up with extra cash in hand which will be helpful during your stay in that new country. Hence, planning and saving will always help you in the long run.
Once you have thought through the things that you would like to achieve going forward, try to fix a tentative budget for each of them. This will also help you prioritize. If your entire budget is exceeding your available finances, try to prioritize tasks from the list. Always remember to set a budget aside as your savings.
If you have started earning money, then you have to start saving too via different investment mechanisms available. If your source of income is your pocket money, you still can save a percentage amount every month which you can utilize in long run.
Too much debt is not a good thing. Try to pay off your debts on time so that you do not incur any extra cost. Hence, while you plan your budget and way forward, remember to keep your EMIs and other instalments in mind.
Consult an accountant and plan your tax for the next financial year. Check with him/her if your existing savings mechanisms are enough to support you through the year ahead. If not, check with the consultant on how you can strengthen your tax-savings investments.
Reviewing and planning your way forward in terms of your earnings, expenses, savings, etc. will help you get a better outlook of your finances and give you a clear picture on what you need to do for fulfilling your aspirations. With regards to your academic expenses, you don’t have to worry at all. We have customized solutions for all your educational aspirations. Please feel free to reach out to us for any query or assistance regarding an education loan. We will be happy to assist.