Words Of Wisdom

“Cheers to a new year and another chance for us to get it right.” 

- Oprah Winfrey

New year calls for new resolutions and reflecting on improving your life. It’s a good time for watching out on your expenses and using your money properly. 

By Radhika Sethi | 4 min Read 

The new year brings new beginnings and a new chance to make things better and right. 

Here are 3 financial resolutions to take for 2020: 

1. Ditch your costly credit card debt: 

Millennials shun credit cards because they create a debt which can be expensive. Two broad categories of debts are installment debt and revolving debt. In general, installment debt is the better of the two, encompassing mortgages, car loans and student loans, which typically have set interest rates and monthly payment amounts which can be tackled down by simply making your monthly payments. Whereas revolving debt like credit card and HELOC which carry variable interest rates and minimum payments that can vary wildly based on how much you currently owe can be more detrimental to your financial life. 

So Resolving to pay down your credit card debt and not incur more interest should be on the top of your financial resolutions list this year. 

2. Build your emergency fund.

Emergency funds can be life savers for the rainy days. Decide the amount of emergency fund by calculating your monthly expenses. Many financial experts advise that the amount should be at least three to six months’ worth of expenses.

3. Cut your expenses, Save and start investing. 

It doesn’t take a huge amount of funds to get into the investing game. College is the best time you start investing. 

Equity mutual funds are a good options which include monthly income plans which offer less volatility. SIP (systematic investment plan) is a great way to go about it.

Example: Birla SL MIP- II  wealth 25 plan- growth option this scheme has given annualised returns of 53% over a 3 year period.