2021 annual financial checklist: here’s how you can keep your finances in shape


It’s time to take a step back and do some checking to make sure you’re on track with your financial goals.

For tax professionals and businesses, the end of March is the busiest time with tasks such as late filing RTIs (tax returns) for accounting for profits in mutual funds. actions and actions, which must be completed by March 31, 2021.

March 31 is the last business day of a fiscal year and April marks the start of a new fiscal year. Experts say the New Year is a good time for people to reflect on their goals and investments to make sure they’re on the right track.

For better returns, adequate insurance protection and tax savings, the New Year is a good time to make such important financial decisions when it comes to saving and investing. It’s time to take a step back and do some checking to make sure you’re on track with your financial goals.

To do this, experts say, you must first understand your current financial situation and then take corrective action, if necessary.

Revision of objectives – Set goals for yourself, you haven’t already. Make sure your risk profile, financial goals, and investment schedule are all in line. Checking out the entire portfolio is a good time to seek help from a financial advisor and find out how you’re doing against your financial goals. Besides human interaction, nowadays there are various digital platforms that help to review a portfolio. Keep in mind that you should review and modify your investment plans, only if your existing asset allocation is not in line with your financial goals.

The right time to save tax – Most taxpayers wait to do their tax planning and panic at the last minute. Industry experts say the start of the fiscal year is the best time to start tax planning and save for tax with the right tax saving products. Properly planning taxes from the start of a fiscal year can avoid any last minute investment decision in tax products. This will help investors make meaningful investments and help build long term wealth.

Insurance valuation – With the pandemic, most people are now opting for insurance, but are you sufficiently covered? It can be found out based on their income and dependencies. For a life insurance policy it is necessary to make sure that the addictions or the family are adequately covered, so that the family’s day-to-day expenses, responsibilities (if any) are covered and also fund the main life goals. , in the event of an unforeseen event. In addition, for both the policyholder and the family, adequate health insurance coverage is necessary. If you already have insurance coverage that you think may not be adequate due to rising medical costs, you can opt for supplemental or super supplemental insurance to stay insured.

Understand your debt situation – This includes your cash outflows to your credit card payments, home loan IMEs, personal loans, car loans, and more. You need to keep a check on your outstanding debt and understand how much debt you will be comfortable with on a monthly basis. basic, without any stress on your cash flow. Note that taking on too much debt will have detrimental effects in the long run, in addition to hurting your credit score.

Emergency Corpus – Most people have exhausted their emergency funds, in the past year, during COVID-19. However, experts say, we must continue to invest in the creation of an emergency fund and continue to maintain it. If you are just getting started, start by trying to accumulate 4-6 months of living expenses for your / family. So that you have a financial safeguard in case of unforeseen circumstances and that you do not have to dip into your savings. Also, review this fund at regular intervals so that in the event of a shortfall, you can top it up.

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