Make 2024 The Year Of Financial Stability
02 January, 2024
People often look at the New Year as an occasion to strengthen their resolve towards things they want; whether it losing weight or getting a promotion. You can also use this zeal and motivation to bring about some changes in your finances this New Year so that by the end of the year, you will find yourself in a financially more stable and stronger position. Let’s see how you can achieve financial stability in 2024!
What are Some Ways to Start Fresh Financially in the New Year?
January – Track your expenses: Most often our finances go haywire because we spend more than what we can afford. Half the battle is won if you know how much you are spending and on what. You can set a tracker in place to help you understand how and where you spend your items. You can conveniently track your expenses using your NetBanking and Mobile Banking portals. As an HDFC Bank Credit Card holder, you can log into MyCards and track your Credit Card transactions. Over time, you can eliminate any unnecessary expenses. One of the best steps to track financial stability over the long term is to use a planner. This could be as simple as writing down your expenses in a notebook on a daily basis or recording your expenses on apps that are designed to help you keep track of your personal finances. You can also manage your everyday expenses on PayZapp. The Passbook feature in PayZapp also gives you insights into your payment patterns, allowing you to take control of your expenses.
February – Figure out a budget: Track your expenses and income for a month. Once this is done, you will know what your spends should look like on a monthly basis. This can then serve as a guide for financial stability throughout the year, as you plan ahead according to what your income is, and what your expenses are. Make a budget that is realistic and one you can follow. Account for unforeseen expenses and liabilities so that your plan isn’t affected by any emergency. If you want to track earlier expenses, you can log into your MobileBanking App or even through NetBanking and download your past statements for your reference. You can use a monthly budget planner to keep track of your spends and maximise savings.
March – Get your taxes in place: In India, the month of March is earmarked for tax formalities. You can use HDFC Bank NetBanking or even your MobileBanking App to get the tax filing done, whether it is the self-assessment tax due to be paid or filing your Income Tax return. With HDFC Bank’s Online e-Tax Payment facility, you can pay direct and indirect taxes, state and central government taxes, customs and local municipal taxes. March is the last chance for those looking to save some tax money before the financial year closes. It is also a good time for you to start thinking about the next financial year, and how you plan to invest then. If you prepare ahead and go armed with a plan, the next few months will be much easier.
April – Invest early: While the last-minute investments made in March can save some money in terms of tax, the benefits need to be weighed against the cost of doing so. Plan your investments early. With HDFC Bank, you can invest in inflation-indexed National Savings Securities – Cumulative Bonds, Savings Bonds, Capital Gains Bonds, etc. It will help you stick to the budget while making a well-thought-out decision on your investments. You can also explore investing in tax-saving Mutual Funds (ELSS), look at investing in the markets directly via a Demat Account and explore a wide range of short and long-term investment options that suit your needs and your risk appetite. You can also open a 3-in-1 Account with HDFC Bank where you can enjoy the benefits of a Savings Account, a Demat Account and a Trading Account.
May – Build a contingency fund: At all times you must have some money ready to meet any unforeseen expenses. In the absence of such a fund, you may have to resort to a quick loan from the unorganised sector, which can cost you dearly. Or you may have to liquidate your assets, often at a lower price due to the panic sale. You can also prepare for such eventualities by opening a Fixed Deposit or a Recurring Deposit. You can instantly book the FD online via NetBanking or Mobile Banking.
June – Build a retirement corpus: Retirement is inevitable and we should all prepare for it. If you haven’t already started a retirement benefit plan, this year you can go for a retirement savings fund. Investing in a retirement plan will reduce your present spending capacity, but it will undoubtedly strengthen you financially in the long run. You can invest in the National Pension System (NPS) and build a retirement corpus. HDFC Bank offers a platform to contribute to NPS through a Systematic Investment Plan (SIP).
July – Make a credit repayment plan: For many of us, loans and dues are a constant menace. In many cases, we end up paying interest as well as late payment charges; such liabilities can unsettle our financial position. Set aside some time to chalk out a feasible repayment plan and try to stick with it. Repay your HDFC Bank Loans and Credit Card dues and receive online confirmation.
August – Get a good Credit Card: Plastic money is becoming omnipresent in our daily lives. Having a credit card is no longer a preserve of the privileged few. HDFC Bank Credit Cards offer great value in terms of Reward Points, CashBacks, and bonus points, as well as access to privileged destinations. Select one and reap the benefits while you spend.
September – Strengthen your income source: As the months pass, it is good to look at your income sources. Dedicate a month to rethink your business strategies, review your profitability, and look at how to increase income. If you are salaried, you should plan how to improve your performance rating, compare your market worth, and discuss your expectations with your employer.
October – Take a budget holiday: Make sure you don’t fall into the habit of only saving and earning while life passes you by. Take a well-deserved break and go on that holiday you were planning for. SmartBuy is one platform that allows you to compare, choose and book the best flight rates for your travel.
November – Invest in what your sixth sense says: One wouldn’t want to be too methodical all the time. Instead, add a bit of variety to your investment method and go for a hedge fund, gold bars, or the dark horse stock you have been eyeing for a while. Use the versatile and user-friendly HDFC Bank NetBanking to invest in IPOs, mutual funds, equities, and derivatives.
December – Review your financials: It is also important to self-assess your finances once in a while. There is no better time for this than the end of the year when you can take a look at all the financial activities you took up during the year. It is a time to identify the lessons learnt and implement improvements for the next year. We hope that by incorporating these tasks into your monthly calendar, you will be able to put your finances in order and have a more robust structure in place when it comes to earning, using, and saving money. If you need some ideas on how you can invest for the future, HDFC Bank has a wide range of investment solutions designed to help you maximise your returns. You can also read about the different tax-saving instruments available to you here. This should help you identify how to reduce your tax liability significantly.
To open a Demat and Trading Account, click here.
*Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. You are recommended to obtain specific professional advice from before you take any/refrain from any action.
Tax benefits are subject to changes in tax laws. Please contact your tax consultant for an exact calculation of your tax liabilities.
