Another year has come to an end and it’s a very good idea if you are going to plan your annual financial plan. Make sure that you have listed all the short term and long term investments in which you are going to invest. If you make a list then you will be able to easily track your financial goals. You will know which task you have finished and which task is remaining to complete.
An annual Financial Planning is a way of determining your financial situation at this moment. To make a financial plan, you will have to list all the important things like your income, savings, retirement funds, liabilities, loans, credit cards, home loans, car loans and various others. Make a list of all the monthly expenses and your utility bills also. This list will help you to know about all your financial goals and you will have to do to reach your goals. Your financial goal can be anything like tax, retirement plan and any other investment strategies. Now, you know about the annual financial plan and how to make your year-end financial checklist.
Even if you don’t want to invest in any funds or if you have paid your credit card bills and don’t want to continue them and maybe you don’t want to continue your refinance your mortgage but it is better to make a year-end financial planning checklist to know about your current financial situation. Make a list of both the things which you are going to invest in and which you have already been investing in. Your financial planning checklist must include things like your savings for a retirement plan, emergency fund, savings account, real estate equity, savings for your child’s education, health-related savings and others. Make a list of debts such as credit cards, student loans, mortgage, home loans, car loans and other personal loans. Calculate your credit utilization ratio by dividing your credit limit with the amount of debt you have. Calculate your credit report and credit score. If you any financial advisor or any fund manager for your mutual funds then review the fees you’re paying to him/her and make sure that you are getting benefits from his/her services.Plan Your Financial Goals for the Coming Year
Now, if you have noted down everything in your financial inventory then you can now set your financial goals. You can set goals for short term, midterm and long term. Know about your current financial situation and make plans accordingly. If you want to set a short term goal then you can pay off credit cards, you can establish a budget and you can create an emergency fund and if you already have any emergency funds then you can increase your emergency funds savings. For mid-term goals, you can get life insurance, health insurance and wealth insurance. If you have any dreams like buying an expensive car or bike, buying a house or if you want to send your children to an established institute then you can save to fulfill your dreams. For long term financial goals, you can save for your retirement plan and calculate the amount of your fund which you will have at the time of your retirement. You can make strategies to know how you can increase your retirement funds.
Plan Financial Investments for Your Family
If you are married and you have a spouse then you can make a plan together for the financial year. You will have to keep in mind about your children’s education and you will have to plan how much you will have to save for your children’s future. If you have elderly parents, then you can save money for their long-term health insurance. A good idea is to buy life insurance for yourself and your spouse. You can plan your retirement together.
Consider Short-Term Investment Plans
You can invest in mutual funds if you want to make short term investments. If you want to invest in mutual funds then you can have a financial advisor or fund manager who will help you to know about where to invest and when to invest. They will analyse your financial situation and this will also help you in making financial plans. You will have to be very careful about the investments in mutual funds because it is risky. If you find it very risky then you shouldn’t go for it. Make investments according to your financial condition. If you are going through poor financial conditions then it’s not a good idea to go for long term investments.
Know about the fees or commission you will have to pay to the financial advisor or fund manager. You can invest in Reliance Mutual Funds for your mid-term financial goals. You can also go for equity funds. An equity fund is a mutual fund that invests in stocks. Equity funds are also known as stock funds. Ask your financial advisor to know about how much should invest in this fund. You can also invest in mutual funds or equity funds for long-term investments. If you want to invest for a long time then you can invest in axis long term equity fund to get returns after a long time. The fund manager or the financial advisor who is a third-party expert will review your plan and they will care about your interests first. You will have confidence and peace of mind about your retirement finances. They will invest in a way so you can save tax and save more money. You will always have to track your investments and if you do any other job then it will be very tough for you to do all these things so it will be better if you have a third party expert to track your investments.
If you want to invest more than you are investing now then there are many steps which you will have to take. You can increase the investment in your emergency savings account for the future. You will have to look for extra income if you want to save more money. You can invest in a rental property and you will be able to get a fixed amount of income from the rents. You can go for a part-time job to earn extra. You can do other things like lower your food bill, cut the cable cord, try to save from small things and you will be able to save more. A financial plan is a very important thing for your life and by doing so, you will be able to get peace of mind and make your life better for today and the future also.
