4 Best Personal Finance Flavors of Ugadi 2016
The name Ugadi being derived from Sanskrit words like ‘Yuga’ meaning ‘age’ and ‘Adi’ meaning ‘the beginning’ suggests how ideal an opportunity is this to reset your personal finances. So if you have been procrastinating on reviewing your financials, don’t delay further and pull yourself to disappointment by the year end. Instead of questioning your persistence, find solutions on how to achieve your financial goals on time.
For example, some would aspire to gather enough corpus to make the down-payment for their home loan while some by the year-end would love to have enough cash to back their annual holiday plan. For children of school-going age, parents will be aspiring to get them into good schools which require a big fund while some teenagers will be preparing for their education abroad which is a matter of a lot of money. If you observe closely, all these aspirations have monetary implications and to fulfill them, not only persistence but a proper planning is very necessary.
Ugadi Pachadi: The recipe for a financially secured future
Practically speaking, for a person of the middle income group, only a few goals are achievable at any given time period. So, prioritize the ones which will act like a springboard to help you land on a solid financial future. But how do you choose them if you have plenty of equal importance to fulfill? For this, why not talk to a personal financial advisor today? An experienced advisor can help you add the following flavours:
Flavour 1: Board a Budget:
Budgeting your expenses may sound too simple a task but if you allocate a smaller budget for an item of higher expense, you may see you are spending more than your original budget. In the contrary, if you allocate a higher budget for an item of lower expense, you may think that you have saved a sum. This could lead to a false analysis of your budget and hence you have to be as appropriate as possible. In this case, a financial advisor can be of great help to reset your finances. Once you have an idea of your income versus expenses, setting consecutive goals become easy.
Flavour 2: Set an emergency fund:
An emergency fund is an ideal way to tide over a family crisis or meet unexpected expenses. It usually comprises three to six months of necessary expenses that back you against unpredictable crises such as unemployment, illness or a major unplanned expense.
Flavour 3: Start an investment:
Now that you are convinced that your goals come with a price tag, and you can only save a little by the time you expect to realize your goal, it is time to put your surplus into avenues that can guarantee better returns. But how do you get started? Should you sell yourself to a bad investment and regret it later instead of enjoying a holiday somewhere? Your financial advisor is the right person to help you determine your investment avenues so that you reap the right results.
Flavour 4: Get an Insurance Plan:
Once you are aware of where you stand financially and you have initiated your investments, you should now have insurance for risk coverage. Your financial planners can review the same and advise if you are sufficiently protected or you need to start with a new insurance plan that will shield your financial ambitions.
All said and done, remember that these four goals for Ugadi/Gudi Padwa 2016 are going to lay a solid foundation to a future when lack of money won’t be an excuse any more. As discussed above, the four flavours of this auspicious occasion are just an initiation to a great future. You can be successful with realizing all of them, when you create a successful calendar of your goals with the help of a trustworthy and unbiased financial advisor.