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6 Simple Financial Decisions you should Plan this New Year -
6 Simple Financial Decisions you should Plan this New Year
elearnmarkets | Published: 15 Dec, 2017  | Source :

With few days left to say good bye to year 2016 and welcome year 2017, it’s time for us to revamp certain things in life. In the hustle and bustle of daily life, we often forget to take some important action which might appear small and simple but are often very important decisions in life.

Here are few simple financial decisions making which you can include in your to do list this New Year since it often gets neglected.

1. Plan a financial goal

Divide your goals into various time frames including near term, intermediate and long term and accordingly allocate your investments. Unless and until, there’s a clear vision going forward, the plan appears vague with low visibility.

You should work hard to fulfil your near term goal which gradually leads to meeting the further longer term goals. Moreover, you should be able to quantify the goals so that proper steps are being taken to fulfill it.

2. Create a budget, track and stick to it

A monthly budget is a mechanism which takes into accounts your monthly income and expenditure, so that you have clarity on your cash outlays and plan it accordingly to make it more efficient. Budget allows you to have some control over what you spend.

A well planned budget can help you to solve where to spend your money, clear your existing debts, plan your future and save every month by reducing wasteful and impulsive purchases. So if you haven’t created a budget yet, create one and you yourself will be surprised by its impact in a span of 6 months to one year.

3. Upgradation of SIPs

Systematic Investment Plan (SIP) is an investment strategy wherein an investor is required to invest equal sum of money in a particular mutual fund at every stipulated time period. It helps to benefit from the dollar-cost averaging (DCA) and the convenience of saving regularly without taking any actions except the initial setup of the SIP.

If you already have one, you need to upgrade it based on your present situation. Say you started doing your SIP at age of 25 (when you started your career) for Rs 1000. But now after 5 years, when you’re little settled and with improvement in standard of living, it’s time to upgrade your SIP plan to Rs 2500 or Rs 3000 depending upon your capacity.

4. Cutting down on debt

Being in debt can be a stressful experience. No matter what your circumstance is, if you signed for a loan, you are obligated to pay it back even if you have a life altering experience like losing a job, getting into an accident, or even if you have increased expenses due to having a child.

One should have a control over his debt and think twice before taking one. Try to cut down your expenses especially if you already under a big debt. Over leveraging both in personal and financial life can be dangerous. Moreover you can also create an emergency fund which can be used in case of any urgency or need.

5. Upgradation of term plan

The best thing about term insurance is that it’s very inexpensive as compared to other insurance plans. Say a person of 23 years of age wants to make an investment cover worth Rs 67,50,000, so he need to pay an annual premium of approximately Rs 7000 (provided the person is not a tobacco user), which comes to a Rs 19/day.

Term insurance is highly recommended if you are the sole earning member of your family and you have dependants under you.

One should analyse their term plan at regular interval. Say you have already done a term plan at the age of 25 when you were a bachelor. Now after five years when you’re married and have children, the situation and responsibilities have also changed. Now after considering your financial background and responsibilities, the assured sum should be revisited and upgraded as well.

6. Paying off home loan or other big loan first

Try to pay off the home loans first before entering into any other debt. Unless you have settled such loans, it will be advisable to cut down leisure expenses like expensive international trips, expensive jewellery etc.

If you already have some surplus fund, try to use it by paying off your partial debt. Try not to enter into any risky trade or taking a big loan if already have one.


Develop your financial game plan and start your journey toward being debt-free today. This new year let’s take an oath to follow these rigorously and stick to it. You are free to make necessary changes in the above plan and include or exclude few things depending upon your need. To gain more knowledge in financial planning you can take up Strategic Financial Management course on Elearnmarkets.

Kindly mention in the comment section below about the points which you would like to include in your to do list this New Year.

Take care and keep learning!


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Disclaimer: The author has taken due care and caution to compile and analyse the data. The opinions expressed above are only the views of the author, and not a recommendation to buy or sell. Neither the author nor accept any liability whatsoever arising from the use of any of the above contents.