Getting ready for your New Year investment resolutions!

Jan 01 2014, 10:46 IST
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Before making your resolutions for 2014, the most important thing you should do is to review your current financial status. Before making your resolutions for 2014, the most important thing you should do is to review your current financial status.
SummaryHere's a quick check for making a simple, achievable New Year resolution for anyone irrespective of earnings.

off unwanted debts.

Invest in an Emergency Fund: In this day and age of increasing inflation, sudden job loss or a sudden illness of any family members can damage your finances.

Therefore, it is imperative to consider investing in an emergency fund. Most financial experts are of the view that such emergency funds which also known as contingency

fund, must hold finances that can sustain the dependent members of the family for a minimum period of six months. If you have not given due though to have an active emergency fund, make plans to start it this New Year. Make regular investments in your emergency fund which can gradually help you a build a corpus that is liquid with the ability to earn handsome returns.

Protect your family’s Financial Future: Protecting your family's financial future is an essential step that needs to be a part of each financial resolution. A lot of people explore life insurance but totally ignore medical insurance for dependents and immediate family members. If you are one of those who have neglected medical insurance of your dependents, plan for a good package by this New Year.

For people seeking life insurance as an investment, one needs to understand that life insurance helps your dependents in case you are not around. Considering insurance purely as an investment vehicle is a bad financial decision that must be changed.

Improve Credit Scores: Another great New Year resolution is to improve your overall credit score (CIBIL). Many people are stuck with bad credit score due to their own financial mismanagement. Take a call before this New Year to cut out on unwanted credit cards and loans so that you do not end up spoiling your credit score in the coming year. If you are planning to avail some loans in the coming months, make sure that you keep a minimum gap of six months between the two loan applications. Pay your loans and credit cards on time avoiding late payments.

- BankBazaar.com

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