Constantly evaluate your portfolio to stay on par with your objectives, risks and other potential exigencies.
It’s always a good time to ensure that your finances stay in order. Industry experts point out managing one’s personal finances is the key to cashing in on the various financial and investment opportunities that come one’s way.
Having said that, Rohit Garg, CEO and Co-founder, SmartCoin says “life is prone to numerous turbulences such as unforeseen expenditures, emergencies or tax amendments which can impact one’s financial health.” Therefore, “optimum financial planning is all the more vital to stay dry and stay clear of any such contingencies that may erupt without warning,” he adds.
Here are some essential aspects that are imperative for a solid personal financial calendar in 2022. Are you on track?
- Start with assessing the overall state of your finances. Garg says, “one should constantly evaluate his/her portfolio to stay on par with their objectives, risks and other potential exigencies.”
- Always plan ahead. According to experts, you should always plan ahead and prepare for any unprecedented hiccups in the tax vista and also handle your marginal tax rate.
- Funding a donor-advised fund is a good bet. Garg explains, “The DAF is a charitable vehicle that enables you to combine multiple years of donation into one without the need of paying it out all at once.”
- Allotting money for major future expenses, such as retirement, children’s education, etc. Garg says, “It is essential to make sure that your retirement plan contributions remain maximized. Also, don’t forget to stash away a significant part of your earnings for the sake of your children’s education.”
- He further adds, “One should ensure that he/she is subscribed to RMD (Required Minimum Distribution) as and when required. Also, one should check with their employer the deadline for utilizing any flexible spending account (FSA) funds.”
- Keep assessing the various financial developments of the year and make alterations to your financial calendar accordingly. Basically, according to experts, your budget should be efficient enough to deal with prospective challenges and hurdles that can arise anytime.
Garg explains, “With the pandemic ushering a period of major turbulence and uncertainties, maintaining a well-planned financial calendar is of the utmost importance this year. Besides bestowing one with the ability to avert crisis-like situations which may develop on account of various factors, a meticulous and diligent financial schedule also acts as an all-weather year-round safety anchor.”
Financial planning experts say it is one of the foremost tenets of financial best practices which when undertaken results are sure to yield several fortuitous returns for you.