5 ways to start your New Financial Year on a right noteApr 11, 2018(16:33)
New Year is a great time to overhaul your LIFE for the better. However, we often relate this only to calendar new year and not the new financial year. A new financial year is an excellent time to start a new financial journey full of financial decisions driven by financial goals.
How to get started? Whether you are an experienced investor or a newbie, you can start this new journey of the new financial year, guided by this checklist.
Review Income and Expenses of Last Year:
Most often than not, we have a standard pattern of income and expenses. Reviewing your income and expenses from last year is a good way to get started. Retrospection is a good way to analyze things and get insights on where and how to improve. You can easily identify if you made any financial mistakes, how you could have managed money better, good financial choices you made, etc. These pointers can be a great guide in making smart financial decisions in the year forward.
Review Progress of Financial Goals:
Along with reviewing income and expenses, you also need to review your financial goals. You could be saving for the down payment of a house, your retirement, education of child, vacation, investment for your start-up, etc. Each financial goal requires a separate investment plan and execution. Reviewing it at the beginning of financial year gives a heads-up if the investment plan needs to be revised based on its performance and inflation.
Plan Savings and Tax Payments:
Doing taxes may not be the most exciting task in your hand, we agree. But sooner or later you have to do it and as it is said, earlier the better. Planning for the beginning of financial year not only saves you the chaos later, but is also a smart financial decision. It gives you time to invest in the right financial instruments and gives you time to double check if you are availing every deduction and tax credit available to you.
Check and Submit Forms:
While tax deducted by the employer is reflected on Form 16, always check Form 26AS to make sure that all other taxes have been rightfully credited to your PAN. In addition, also file the taxes and claim the returns timely with proper documentation, if applicable. Checking applicability of other taxes and forms such as 15G or 15H is also advisable. Once you know your tax liabilities, it is easier to calculate your actual savings and plan investments accordingly.
Now you can estimate your income, expenses, tax liabilities and have reviewed your financial goals, all you need to do is chalk out an actionable plan to ensure you make smart financial decisions to meet your financial goals in the new financial year.
Vivek Ranjan Misra
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