Well done! You have managed to achieve a sound financial balance that will help you fulfil your goals. We only have one tip to give you: Be consistent. Well, if you want to perfect your wealth management further, then just turn your 'NOs' into a 'Yeses' if any.
You have made a couple of good choices. However, to create sound financial health, you need to put in a little more work. Start by turning your 'NOs' into 'Yeses' and you will enjoy better wealth stability that will not only help you fulfil your goals but also help you save.
You need to relook at your wealth management system. There are certain fundamentals of investment, saving, taxes, and others that can really shape your finances to fulfil your goals. We recommend that you follow these basic steps to create sound financial health.
I know the total value of all my investments and savings, and track this on a quarterly basis.
- It is important to stay updated on your investments and savings from time to time. This will help you plan your current and future goals.
I understand the fundamental principles of investing, such as compound interest, investment risk and diversification.
- Without knowing the basic principles, investing could be a financial peril for you. In order to take the right steps, you must acquaint yourself with the fundamentals of investment.
I know which type of investments suit my risk-appetite.
- Before putting your money in a fund, check if it suits your risk tolerance. Otherwise, you may not receive the expected returns.
I know which investments provide good returns.
- What you choose is what you get. Learn about a fund's performance and ensure that you invest your valuable money in the right place.
My investments are structured to be tax-effective.
- Invest in funds that have a low turnover, thereby reducing your capital gains liability and improving your after-tax returns.
I know which tax slab I fall into and the applicable tax rates on my earnings.
- Reduce your tax payments by investing wisely. That is why it is important to know which tax slab you fall into and the applicable tax rates on your income.
I know exactly how much I spend on utility bills, grocery and other staples each month.
- You need to calculate regular expenses like bills, grocery and other staples to understand your requirements fully and meet your requirements efficiently.
I have credit cards and I pay off the outstanding each month.
- It's best to pay off your outstanding credit card dues every month instead of piling them up and paying it all at once, which is causes more strain on your budget.
I know how to consolidate my debts to reduce the interest that I pay.
- An unsecured loan from a bank provides a lower interest rate than credit card. Therefore, learn how to consolidate your debts to pay your credit card dues sooner and at lesser interest.
I make regular savings (a certain amount per month as far as possible).
- Saving regularly is highly recommended as it can prove to be extremely resourceful during emergencies or other financial needs.
I have a plan for saving and/or investing money for shorter term goals (overseas holidays, a new car, etc.)
- Why compromise on your dreams or empty your pockets to fulfil them? Just plan wisely, save or invest your money for a period of time and achieve your short-term goals easily.
I own my home outright.
- With property rates touching the skies, your home can be a valuable asset to you. That is why we recommend that you plan your finances to invest in buying a home.
I am saving to buy a home and have an effective savings strategy.
- Buying a home is anything but easy. Hence it is advisable to plan an effective savings strategy in advance to ensure a smooth process.
I am aware of all different types of home loan available and understand how they work.
- There are various types of home loans available in the market today. It is important to know all your options well in order to make the right choice.
I already have a home loan and am paying more than the monthly EMI.
- Ensure that you are able to pay off your monthly EMIs from your income regularly. This will help you avoid any repayment hitches.
I know what I need to do to pay off my home loan within the next 10 years.
- Planning is the way to go if you want to make your loan repayment smooth. With inflation on the rise, manage your wealth and expenses to ensure financial balance.
I know exactly how much insurance cover my spouse and I have.
- In your absence, you have to make sure that your family has sufficient funds to make ends meet. In this effort, it is essential that you are well-acquainted with your insurance coverage and other financial requirements.
If I become seriously ill or disabled tomorrow, I will still be able to pay my EMIs.
- Plan your loan repayment in such a way that you are able to pay your EMIs even if you're ill or disabled tomorrow, avoiding a crunch.
I have enough insurance to cover my family's needs if something happens to me.
- Protect what's dear to you. Secure your family's needs by stocking up enough funds or insurance cover to fulfil their needs in your absence.
I know what my employee benefits are.
- If you know what you're employee benefits are, then you can use them to your benefit and plan your future financial needs accordingly. So make sure that you're informed about your employee benefits.
I have a financial adviser.
- A financial adviser helps you make the most of your money by never missing an opportunity, staying informed about the latest market trends, and making sound financial decisions.
I have an up-to-date will.
- Ensure that you update your will to ensure rightful allocation of all your assets.
Copyright 2010 UTIMF
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.