Financial security is achieved when expenses no longer cause stress but rather bring comfort. It ensures well-being by meeting the required needs. Let’s learn from the financial decisions and plan better for 2024-25 to maintain financial health. Understanding crucial tasks and what to avoid is key to financial stability.
Mrin Aggarwal, the Founder and Financial Educator at Finsafe India, suggests four steps to think about for the year 2024-25. These steps can help you improve your financial planning and avoid problems. Planning early, keeping informed and making decisions on time is crucial for achieving financial success in the current year.
Avoid Social Media for Investment Tips
In today’s fast-paced world, much of the advice you come across may not be right for you. It’s easy to be swayed by what you see on social media and hear from friends. But keep in mind that everyone’s financial situation is different, so following others immediately might not be the best move. If you’re involved in the stock market, stay away from Futures and Options (F&O). Data from SEBI shows that 90 per cent of F&O traders lose money.
Select Investments Outpacing Inflation for Better Returns
Inflation occurs when prices increase over time. Investors must ensure their investments yield profits after taxes and inflation. If not, they should reconsider their investment allocation. NSC and investment-linked insurance might not perform well next year. Exiting the market during losses or low returns can be tough. But growth requires diligent effort.
It is imperative to organise your financial records diligently. Errors on tax forms or inaccurate income reporting can lead to considerable consequences, even if there are potential tax savings. For those employed, the months of January and February hold particular significance as they mark the time for investment declaration. If you are a working woman, you should have already provided all investment-related documents to your employer for the current year. If not, it is crucial to take immediate action to avoid substantial deductions from your salary.
Understand that the amount deducted from your salary, or already deducted, depends on your income tax slab. If you fall within a certain tax bracket, not depositing investments in advance could lead to issues. In March, your employer calculates TDS based on verified investment proofs. Failing to submit these proofs may result in higher TDS deductions in March.
Comments
0 comment