Another financial year is coming to an end. The new fiscal year begins on the 1st of April, 2017 – and while the fiscal new year sees less fanfare and celebration than the normal new year, this one that should be given a little bit more attention. For those of you who are clueless about this, here are some details. The fiscal/financial year is the period over which companies/firms and sometimes even govt. organise their accounts. At the end of that period, the records, reports and accounts are analysed and the overall performance is reviewed.
As adults, it is a good time to start taking a look at your finances and it is the perfect time to think about your money saving strategies. For young people, there is a lot of room to save up some cash if some small lifestyle changes are made. So, let’s take a look at how we can prepare ourselves for the next financial year.
1. Don’t put all your money in one place
This applies to accounts too. Always have a savings account/ emergency funds account in place. As soon you get your paycheck, transfer some amount to the savings account. Spend only what is remaining and try to save from that too. Apart from savings, think about investments and assets that you could look into. Houses, cars and big purchases may be off limits for now but there are options out there for youngsters to invest their idle cash.
Guarented has a pretty popular scheme that allows people to invest their idle cash to yield up to 24% in returns. You can look into the Guarented Returns Plan for more details.
2. Cut back on the luxuries
When we say luxury, we don’t mean basic amenities. You do need a decent house and of course, furniture and appliance to go with it, but you don’t necessarily need an uber-posh house or purchase furniture and appliances. Companies like ours aim to reduce the financial burden and liabilities that come with having a home. You can rent everything you need for your home from us and pretty compelling prices.
You can also make use of discounts and coupons to make the most of the things. While not all offers are legit, from time to time, good discounts do come by which will benefit you. Other things you could do are –
- Using public transport instead of using solo cab rides. Or you can use share cabs as well
- Cooking your own meals as opposed to eating takeout or dining at eateries
- Controlling the amount of cash you spend on entertainment and leisure.
- Shopping for groceries wisely and keeping track of your utility bills. Some folks swear that switching to prepaid connections made a commendable difference.
- Getting rid of services you do not enjoy or use. If you spend all your time on your laptop, having a TV with a set top box subscription is near next to useless.
- Shopping wisely. Remember what Warren Buffett, the legendary investor said – If you buy things you don’t need, you’ll soon have to sell things you do need.
3. Pay off pending loans/debts at the earliest
Until the last penny is paid off, this should be your priority. Loans accumulate and that is never good for your finances. We know it is impractical to pay them all off immediately, but do your best to pay them off at the earliest.
4. Analyse your expenses or seek professional help
If you run your own business, you’ll need to fetch professionals to take a look at your expenses for the last year and that is near next to mandatory. If you are a salaried individual, the year-end might not affect you so much per se. Even otherwise, this would be a good time to update your accounts, go through your bank statements and identify where your cash goes to. It is never too late or early to start financial planning.
5. Plan ahead and set goals
Most people start becoming salaried at between 20-25 yrs. This typically gives enough time to set short-term financial goals. You can set multiple goals like buying your first vehicle, first investment plan, house etc. If you start early, you should be able to achieve some of them before you are 30. Every month, set aside a little money towards these goals. Even if the amount is as small as 500 bucks, do it. Like they say, little drops of water maketh a mighty ocean.
Like we’ve said before, financial planning should not be ignored and it is never too late to start. You can begin by taking a look at the Guarented Returns Plan. It is a pretty successful scheme and you are assured to make close to 24% in returns, which is a little better than other plans out there.
The ages 20-30 is when you should really start setting your affairs in order to plan ahead and move towards establishing a secure financial base for yourself. Remember, no matter how much or how little you earn, planning is the root of all success. Good luck!