Home » News » Personal Finance»Planning
Jan 10, 2013, 12.49 PM | Source: Personalfn.com

How to achieve your financial goals in 2013

You can, and you will, do what needs to be done, to completely streamline your personal finances.

We are officially in 2013, dear readers!

And this year, you have the chance to get it all right.

You can, and you will, do what needs to be done, to completely streamline your personal finances. And remember, if you do these few very crucial things right now, you are more likely to succeed than if you say 'I'll do this later'.

So let's see what these things are, and say this out loud to yourself as you read them!

RESOLUTION #1 : I WILL KNOW MY GOAL AMOUNTS, AND ACHIEVE THEM !

Knowledge is Power. Once you 'know', you can 'do'.

If you want to retire, start figuring out when. Say to yourself 'I want to retire in __ years, I want to live a lifestyle of Rs. _________ per month' and start working towards it!

Remember to keep in mind inflation.

If something costs Rs. 10,000 today, and we assume 8% inflation per year, then in 10 years it will cost Rs. 21,589. This means that simply to keep pace with inflation your money must earn 8% return, wherever it is invested. And if you want to do more than just keep pace, you must earn more than 8% per annum over the long term.

Remember, your goals have got to be S.M.A.R.T - Specific, Measurable, Adjustable, Realistic, Time Bound!

Your Money Mantra: 'I will have S.M.A.R.T financial goals!'

RESOLUTION #2 : I WILL INCREASE MY SAVINGS EVERY MONTH!

The best way to figure out how much more you can save every month, is to look at your budgets of the past 6 months. But there might be a problem. Most of us don't keep budgets.

Here's a little tip: look at your bank statements of the last 6 months - they won't tell you everything but they will show you broadly what your spending habits have been like, and if you have been using your credit or debit card more than cash, then you will have a clearer picture.

Use very simple categories - groceries, utilities bills, travel & conveyance, medical, house & vehicle maintenance, shopping, insurance premiums (includes life, non-life, vehicle and any other insurance you have, take the per annum premium and divide by 12), eating out & entertainment, and 1 or 2 other categories if you need them.

You might find that you are spending more on medical expenses than you thought, or more on entertainment and eating out. The best way to save money is cut down on unnecessary expenses. Even if you save Rs. 3,000 per month and invest it, over 30 years you can earn Rs. 2.07 crores (assuming 15% return per year).

Your Money Mantra: 'I will save Rs. ____ more every month!'

RESOLUTION #3 : I WILL MAKE MY DAY TO DAY FINANCES EASIER!

The trick to making things easier is just to get organized once. Once is all it takes to get everything set up, and then you can sit back and relax.
So, sit down right now, and make a list of the bills you are paying. From electricity to gas to family cell phone bills, you can have a combined list, and if you have the option of making it an online payment (direct debit), do so. You can still check your bills every month when you receive them, but you save yourself the hassle of remembering to write cheques, standing in queues, and having to take hours off work to do it.

Your Money Mantra: 'I will get more organized today!'

RESOLUTION #4 : I WILL MAXIMIZE MY TAX SAVINGS!

At PersonalFN we constantly write on how you should prudently engage in effective tax planning , which can help you to save tax optimally. But for you to save tax optimally and prudently, it is imperative that you start with the tax planning activity right from the beginning of the financial year, rather than towards the end. The tax saved can be invested towards achievement of your crucial goals such as children education, their marriage, your retirement and your other financial goals.

Your Money Mantra: ‘This year I will save tax prudently to obtain effective and optimal benefit in the long run!'

RESOLUTION # 5 : I WILL HIRE A FINANCIAL EXPERT TO PLAN MY FINANCES !

Let's face it. If you want your car serviced, you're going to go to a service center you trust. If you have a medical concern, you'll go to the best doctor you can find. Self-service only works sometimes on matters which do not require expert opinion. But in certain matters where you need to obtain expert opinion; you must! You must hire a financial planner to plan your finances. The clarity, the benefits, and the feeling of control over your financial life will make you wonder why you never did this before!

Your Money Mantra: 'I will hire a financial expert right now!'

These 5 money mantras are short, easy and very, powerful.

Don't wait. Don't think 'I'll do this tomorrow', because procrastination can derail the objective of putting your finances right. So you need to do it now - do it today!

Remember the wise words of George Bernard Shaw: 'People who say it cannot be done are interrupting those who are doing it.'

PersonalFN is a Mumbai based Financial Planning and Mutual Fund Research Firm

READ MORE ON  financial, inflation

ADS BY GOOGLE

Ask the Experts

Get your Personal Finance queries answered

  • Q

    Interest rates are going to go down. And all my fixed deposits will be maturing next year. I will have to renew my fixed deposits next year at lower rate of interest. What is the way out?

    A

    Interest rates keep fluctuating due to various micro- and macro- economic factors. There is never an ideal rate of interest. In a high inter...

  • Q

    If I put Rs 2 lakh in PPF, how much tax rebate I will get?

    A

    As per the existing guidelines and rules a person cannot deposit more than 1.5 lacs in one PPF account. However you can deposit money in the...

  • Q

    I want to buy online term life insuance plan. Which is the best one? Should I go for single premium or regular premium policy?

    A

    Single premium term insurance policies don?t make much sense. Why pay such a large amount at one go when you have the option of paying in sm...

  • Q

    I want to invest some money with at least ten years view. I dont want share market risk. Can I invest in NSC? Is there any other investment option?

    A

    NSC or National Savings Certificate is a safe investment scheme offered by the Central Government. It is an ideal option for investors with ...

  • Q

    Is it a good idea to invest in asset allocation funds? if yes, please suggest some good fund to invest money. I am 35 years old and can invest Rs 10000 per month.

    A

    Asset Allocation Funds are for those investors who want to take an exposure into different asset classes but do not wish to create their own...

  • Q

    My CA says that I have to pay tax on interest accrued on my FD of Rs 20 lakh. I have submitted form 15H in all banks. Is it necessary to pay tax in this case?

    A

    In case of interest on fixed deposits which is taxable under the head ?Income from other Sources? a taxpayer has two choices. Either you can...

  • Q

    Please suggest a good investment option of land in South India. I want to buy a land parcel of around 2 acres.

    A

    If you take a look at the South Indian real estate market, Bangalore has emerged as a clear winner. Due to the strong presence of IT/ITeS an...

  • Q

    I want to invest Rs 20000 per month. I have identified Reliance Small Cap Fund and DSPBR Micro cap fund for investment. I can hold to investments for two years. Is it a good idea to invest in these schemes? How much returns I will be getting?

    A

    If you are an aggressive investor, you can consider investing in either of the 2 funds.DSPBR Micro Cap My suggestion is that if you are inve...

  • Q

    I want to save my money for retirment Please suggest a good insurance policy

    A

    For retirement it is advisable to use multiple investment instruments and not just life insurance policies. If you have 15 years or so for r...

  • Q

    IS IT a Good time to invest in GOLD ?

    A

    Currently the outlook for gold is bearish/negative. However if you are planning for a long-term investment in gold it is ideal to invest the...

  • Q

    I have retired from my job in November. I have got Rs 48 lakh from my employers, by way of epf, gratuity and other benefits. Should i invest in senior citizen scheme of LIC? How about pension plans from LIC?

    A

    1. You can invest Post office Senior Citizen Scheme. 2. You also should invest lumpsome in MIP in post office and get monthly interest. 3. K...

  • Q

    I want to save Rs 1 crore for my retirement when i turn 60. Now I am 42 years old and have fixed deposits worth Rs 18 lakh.What should I do to reach Rs 1 cr mark?

    A

    start investing a minimum 5000 per month in mutual fund and increase 10% to 20% every year....

  • Q

    I want to save on my utility bills and fuel expenses.Please suggest a good credit card for me.

    A

    Yes, you will be able to save on Utility bills and fuel expenses through the cash back schemes offered by some of the credit card companies....

  • Q

    Suggest couple of equity mutual funds for me. I am keen to invest Rs 25000 per month for next couple of years. I can remain invested for at least five years?

    A

    Asset Allocation Funds are for those investors who want to take an exposure into different asset classes but do not wish to create their own...

  • Q

    I am a senior citizen.I received interest of Rs .1,70,000/- on FD.I have duly filled 15G form.I have NO other source of income.Have I to pay Income tax on this interest or can it be excempted?

    A

    Sir, please note if you are less than 80 years but more than 60 years of age, your total income upto Rs 3,00,000 is exempt from tax, you are...

  • Q

    Please suggest a good money back policy for me. I am 27 years old and want to accumulate Rs 10lakh over 10 years.

    A

    If you are a fan of traditional money back policies, go in for the LIC New Money Back Policy of 20 or 25 years. I would suggest you go in fo...

  • Q

    I want to buy a life insurance for my brother Please suggest a good policy. He is 19 years old. he should get Rs 5 lakh when he turns 25 years.

    A

    Best to go in for a ULIP in case he is looking to grow the money also. Go in for a ULIP like HDFC Click 2 Invest which is very low on charge...

  • Q

    In 2013, I bought an Endowment policy from LIC. Premium for that is around 35K per year. Now i understand, this was a big mistake and i want to go for a term insurance policy. I have already paid two premiums in 2013 and 2014 and I want to make this policy paid-up. Can i pay one more premium this year and make that endowment policy paid-up ? Or is there any better alternative ? Please suggest.

    A

    Yes, you can convert to a paid-up policy after 3 years premiums have been paid. I would recommend that you surrender the plan and take back ...

  • Q

    Is zero depreciation cover a good option under auto insurance? I have plans to buy honda city in January

    A

    Zero depreciation is a good option to along with the standard car insurance plan. By paying a slightly increased premium you can ensure that...

  • Q

    I am 20 years old,I am getting 17+ % or returns from share in my portfolio consistently for the last 6 months.should i think about a career in stockbroking?

    A

    Its nice to note that your portfolio has been gaining such high returns, however it might be too early to take a call and make stockbroking ...

Explore Moneycontrol

Copyright © e-Eighteen.com Ltd. All rights reserved. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express written permission of moneycontrol.com is prohibited.