The New year is a time to make financial resolutions, ditch bad habits to spending on extra stuff and consider ways to improve your financial health to help you achieve those goals StartupMiles is publishing an article with great advice on how to improve your finances in 2021. We are here to help you understand, and hopefully, practice five easy ways to ensure good financial health.
1. Creating a monthly budget:
A budget plan would vary from person to person depending on their age, income, and fixed expenses, for young professionals, a 50/30/20 plan could work well.
This is the best first step towards managing your money effectively creating a budget approach 50/30/20 plan will give clear idea of how much money you are getting in hand every month after taking care of the fixed and variable expenses such as – house rent, food, health care, etc. Make sure you automate your savings, track the progress, and revisit your budget as and when needed.
2. Knowing your credit score:
Credit score, in simple terms, is an evaluation of your credit history, that is, your reliability as a borrower, and this would decide your eligibility for a loan in the present and future. It is important for you to know your credit score in order to be able to plan and manage your finance efficiently and effectively as incomplete or irrelevant information is dangerous. A good credit score is a sign of good financial health and a good CIBIL Score can help you get a loan at a relatively better rate of interest when you need it the most.
You can check your CIBIL Score for free on Finserv MARKETS. (Credit Score: Check CIBIL Score/Credit Score for Free at Finserv MARKETS) What Finserv MARKETS are offering is much more than just your CIBIL Score. With the Financial Health Check Report (FHCR), which is a personalized report that includes your financial performance across various parameters, you get a detailed analysis in a single report.
3. Clear your debts:
If you have bad debt or old debt, you should make paying it off or settling it a priority. Bad debt is debt that you are not current on or you have stopped paying on. Often this debt is in collections. If you have bad debt, you need to clear it up and pay it off, especially if you are preparing for an important financial milestone. You can pay off your debts and clear your credit card bills in one go using the money from the personal loan and then repay the single loan in affordable EMIs.
You can choose to apply for a Bajaj Finserv Personal Loan on Finserv MARKETS where, for instance, you can receive a loan up to Rs 25 lakh with minimum documentation, attractive interest rates, and no hidden charges. You will also receive personalized loan offers along with flexible tenors ranging up to 60 months when you choose Finserv MARKETS as your loan partner. The best part? You will get the money in your bank account within 24 hours of your loan getting approved. You can get started with the Finserv MARKETS personal loan EMI calculator.
4. Opening Fixed Deposits:
FD investments are a great way to achieve both long-term and short-term financial goals since you can open multiple FDs with different tenures And One of the safest and easiest ways of investments, fixed deposits (FDs) are also the most preferred form of investment for those who want to avoid taking risks with their hard-earned money. Interest rates on FDs are fixed for the tenure of the deposit and are unaffected by other market fluctuations.
5. Investing in ULIPs:
A Unit Linked Insurance Plan (ULIP) gives the investor life insurance and investment benefits under a single financial product. Life insurance companies offer ULIPs and you can choose one as per your risk appetite. However, before investing in ULIPs, you need to learn some basics about it and the terms and conditions of the policy you are opting for ULIPs invest in various funds, including equity funds and debt funds. With ULIPs, you are looking for a long-term investment, a built-in life cover with your investment as well as tax savings. What you need to keep in mind, however, is that ULIPs, despite the taxation benefits, have a five year lock-in period.
We hope you would put these five ways to good use to manage your finances better in 2021! Have a financially-healthy year ahead!
