12 Financial Resolutions For 2015..!

Keeping your finances in shape is no rocket science; you could follow these guidelines to become a smarter investor.

The start of the New Year 2015 is a time to let go of the past and start on a clean slate.

As you get ready to usher in 2015, here are a few measures that could make you a better investor and help in improving your finances. Even if you manage to keep 4 to 5 of these dozen principles to yourself, you will find financial success in 2015.

(1) Will Start Investing in Direct Mutual Funds..!

Direct plans of mutual funds (MFs) are cheaper.

On an average, the investor in a direct plan of an equity fund pays 0.5% to 1% less in annual charges compared with a regular plan.

Lower costs mean higher returns for the investor. The difference is smaller (nearly 0.15%) in case of debt funds. A basis point is one-hundredth of a percentage point.

(2). Would not Buy Life Insurance Policy I do not Understand..!

Life insurance plans can be complicated products.

Some give large covers, others act as savings instruments.

Some charge a premium for the entire term, others for a limited period.

Some offer cover for life, others till a certain age.

Some pay at regular intervals, others give out a lumpsum.

Each policy has its own utility. Understand your needs and then buy a policy.

(3). I will Learn to File Income Tax Return Myself..!

Filing your income tax returns is not rocket science. Even someone with basic knowledge of taxation terms can do it herself.

Income Tax filing portals have made the process easier by explaining the jargon in the forms.

For a small fee, they even check your income tax return for mistakes and guide you on the best ways to save tax.

Get over your aversion for this annual ritual & file the return yourself this year.

(4.) I would not Shy Away from Share Investing..

2014 saw the BSE's 30 Share Index SENSEX touching an all-time high. While this was good news for stock investors, many retail investors regretted that they were not fully invested.

Do not shy away from stocks in the New Year 2015, but neither should you go overboard while investing in them -just stick to your asset allocation.

(5). I Wll Review Portfolio & Rebalance it..!

Studies have shown that in the long term, maintaining the asset allocation of the portfolio yields better results than earning high returns from an asset class.

Rebalance your portfolio at least once a year so that it regains the asset mix you had planned for yourself.

(6). I would not Invest in Equities Short Term..!

Equity / Stock / Share was the flavour of the sea son in 2014 and some experts have predicted that the best is yet to come.

However, stock indices will not move in a straight line from here.

The mood may be bullish, but there will be lots of ups and downs.Do not invest in stocks if you have an investment horizon of less than 3 to 4 years.

(7). I will Assess Health Insurance Needs Also..

Healthcare has become very expensive & even a short stay in hospital can leave you with a bill running into 6 digits.

The only way to safeguard your finances against medical expenses is by tak ing adequate health insurance. It is best to buy a floater cover for the entire family.

(8). New Skill to Up Career Prospects..!

The job market is a jungle in which only the fittest will thrive. Hone your skills or / learn something new to stay ahead of the herd & make yourself indispensable at the workplace. Not only will you be in demand from other companies, but your own employer will leave no stone unturned to retain you.

(9.) I will Renegotiate my Housing Loan..!

It is widely expected that interest rates will decline in 2015. But, the reduction will not be uniform across lenders.

Look around for the best rates for long-term loans & switch to a lower rate if possible. If the loan has more than 7 years to go, even a small reduction in the interest rate can save you a neat packet.

(10). A Job That Suits my Profile Better..!

Are you un- happy, underpaid or / just plain bored with your job?

If this is the winter of your discontent at the workplace, update your resume and start searching for a better job in 2015. The job market is buzzing with offers and the sky is the limit for the right candidate. Step out of your comfort zone and turn proactive.

(11). I will Get Rid of Poor Performers..!

Equity mutual funds gave spectacular returns in 2014, with some doubling your money in 12 months.

But, some funds performed poorly. Despite the NIFTY rising 30% and some funds shooting up 50% in 2014, some large cap funds rose just 20%.

It is time to give such laggards the boot & shift your money elsewhere.

12. Would not Other Goals Hit Retirement

Your child's education, a new car, a second home in the suburbs -do not let your other goals crowd out the retirement planning.

Whether you like it or not, one day you will retire. While you can take a loan for all other goals, it would not be possible to do this to fund your retirement.

Src: ET Bureau

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