Thank you for registration.
We will keep you updated with our investor educative information.
We already have your details.
Are you on the right financial track?
Published On , 23 Jan 2019 By TT Connect
Being financially independent means being able to achieve one’s Goals and being prepared for financial uncertainties. Improper financial habits can also push us away from our financial Goals. By following the right financial behaviour, your journey towards financial security can become easier. This Republic Day, let’s take steps towards financial independence.
You might have resolved to start your journey towards financial security this year. You might be looking forward to learning more about financial planning. But let’s first learn how your faulty financial habits can push you off-track.
Here are 5 habits that come in the way of your financial freedom struggle:
NOT TRACKING EXPENSES Where did my salary go?
Well, you would have had an answer to this if you would have kept a record of your expenses. Tracking your expenses helps you curb impulsive buying.
What you can do: Maintain a diary. Record each and every expense you make. At the end of every month, take note of excess spending categories.
SPENDING FIRST - INVESTING LATER Why I have no money left for investing?
You need to reverse this. Spend only after you invest. If you invest as soon as you get your salary, you will force yourself to manage your expenses with the amount left after investing.
What you can do: Invest through SIP (Systematic Investment Plan) at the beginning of every month.
NOT MAKING Goal-BASED PLANS
Why do I fall short of money while fulfilling my dreams?
This problem can painstakingly be overcome by smart Goal-based fi nancial planning. Your Goals can be as small as buying a microwave oven. Similarly, they can be as large as travelling the world. You can invest for all your Goals through Mutual Funds.
What you can do: Make a list of your Goals. Divide them into short-term, medium-term and long-term. Have a separate portfolio for every Goal.
PLANNING TAXES IN THE LAST MOMENT
Why do I have to struggle to invest a lumpsum amount for saving Taxes?
You can make your Tax planning process easier by starting it early. Ideally, you should begin your Tax planning from the beginning of the financial year. You can divide your Tax Saving investment into 12 parts through SIPs.
What you can do: Start investing in Equity Linked Savings Scheme (ELSS) from April.
NOT PLANNING FOR EMERGENCIES
Why do emergencies push me away from my Goals?
You would have not faced this question, had you invested for your emergencies. Having an Emergency Fund can help you be financially prepared for uncertainties like inflation, medical emergencies, job loss among other things.
What you can do: Invest regularly in Liquid Funds till you have enough money to pay for six months of expenses. Liquid Funds don’t have a lock-in period. They can be your alternative to your savings account or Fixed Deposit.
utiswatantra.com is a UTI Mutual Fund investor education initiative
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
All the data/information shared above has been collected and compiled by UTI Swatantra's media partners - BCCL (Times of India, ET Wealth), One India (ABP, HBL, Hindustan, HT, Mint, Sakal, The Hindu, The Telegraph), ET NOW & Radio One . UTI Mutual Fund (acting through UTI Trustee Company Pvt Limited) / UTI Asset Management Company) owes no responsibility/liability whatsoever in this regards. The information contained should not be construed as forecast or promise.
Any investment decision taken based on the information provided in the content above shall be at sole risks, cost and consequences of the user.