13-Dec-2018 written by : FSI-Team
The year 2018 is about to end. This is the time when most of the people take a stock of how the year faired for them and what would they want to do in the following year. Learning from the mistakes and errors in the current year and making meaningful resolution for the coming year is one thing that is followed by a large population. While money may not be everything but fact is that there is a lot of importance of money in our lives. Hence there has to be a check list to evaluate how the year faired on this important aspect and what we should be doing in the coming year.
This while seems to be quite simple, it is definitely not. Generally the people just take their salaries into account. There are certain other incomes that go unaccounted. The interest earned on savings accounts. Interest earned on a matured fixed deposit. Dividend on the shares or mutual funds. Even the money that come into account through sale of an old article like a TV or a piece of furniture must be taken into account. Not taking any of such monies earned in the year will not help in having a better understanding on the financials.
Keeping a track on what you are spending is as important as keeping an eye on the earnings. And not only keeping a tab on the total money spent from the earning but also on where all the money got spent carries high importance. This year the check list should also include categorization of the spends. Education, medical, entertainment, travel, house maintenance, rent if applicable, government taxes etc should form part of the tracker. This will give you a good understanding on where all the money is being spent and tweak the spends to meet your financial objectives.
Saving carries high importance. To be able to lead a comfortable life even after retirement and even to meet the objectives of say child’s higher education, marriage etc will also need systematic savings plan. Have you been able to keep up with the savings plan in this year must be evaluated. In case there has been a shortfall, it is highly important for you to know the reason for this shortfall and check if the following year can have a higher share of saving to cover up on the loss.
The year end check list must comprise of the factoring any large ticket expense that is to be made within next 12 months. A lump sum amount that may be required to pay for anything must be taken a note of. How is this expense to be covered needs to have a complete clarity. If it is not accounted for, the year’s financials can get thrown completely out of gear.
Have you paid all your borrowers in time?
This is something that generally do not form part of anyone’s check list. Have you been able to pay up all your dues in time. In case there has been a delay of payment, please be cognizant of the fact that you would have paid a late fee on delayed payments and that would have costed you dearly. In case you have defaulted on the money that you borrowed, please take a note that the access to credit facility may not be available and you may have to look out for a loan for low CIBIL score.
The year end check list must also evaluate the component of obligations in the following year. There may be a situation where one might have to pick up an additional loan or one of the loans may be getting over. In either case the planning has to be done on the available surplus money in account.
Last but not the least, have you checked your credit bureau report this year. This is as important as getting your health checkup. In case the same has not been done, then it should form part of the check list and get this completed today itself. Keeping a track of your credit scores is important since it not only gives you access to credit facilities but also the cost of loans can be comparatively lower if you enjoy better credit profile. In this case, you would be able to save substantial money just by being on the right side of the credit bureau.