The starting of the financial year is the best time to review your financial planning. If you want to make more money in this financial year 2020 then you must follow these five easy ways.
New Delhi: The starting of the financial year is the best time to review your financial planning. Apart from the saving, planning, investing and reshuffling the portfolio, there are some tips which can help you grow your wealth. Earning a high salary is not enough to make money. It is essential to make a proper plan and track your income and expenditure.
Financial planning should involve taxes, deductions, loans, EMI, budget, earnings, income, etc. To lead a financially fit life one must plan accordingly. You should be careful enough before investing your hard earned money.
Five ways to make more money-
- In the first month of the new financial year, people should start planning for the taxes. Most of people complete this task at the end of the financial year. Planning in advance lets you know about tax saving instruments.
- Insurance plans should not be bought blindly. Look for an insurance cover which is capable to cater your future needs and lifestyle. Seeing your financial commitments and dependents from your family determine the right amount of insurance amount. You can even take the financial advisor’s help to choose the right plan and cover.
- It is advisable to review your investments from time to time. If you find out that some specific investment plan is not performing well, then do not shy away from switching it to another plan. Always look at the five to six years of return history before making investments. Try to make a plan and explore new funds after reviewing their returns in the past.
- Always keep a check on your cash flow. Track your income and expenditure and ensure that your expense should not be more than your income. Cut down on your extra and unnecessary expenses and invest that amount in your emergency fund. A contingency fund comes in handy during the financial crisis. It ensures cash in hand at the time of urgent need.
- Do not get lured by the idea of making more money. Before you invest your hard earned money make sure that the option is not risky. If you do not understand any particular scheme then sought the financial advisor’s help. Try to avoid putting your money into those funds or options which you do not understand.