Top 4 Financial Year Resolution for 2023-24

May 18, 2023

Resolutions can be split into necessary and optional categories.

Along with better health, better finances can be your goal for the new year. Making smart financial decisions can help you better manage your income and expenses. Also, it is important that you invest your money in avenues that will grow with time to protect yourself from inflation. We have listed 4 financial resolutions for the New Year that you can consider below.

Financial resolutions to improve your financial health

Here are simple and achievable financial resolutions for the year 2024 you can set for yourself:

Enhance your credit score

Your credit score is one of the most important factors in deciding whether a lender will lend you money or not. The higher your credit score, the better your chances are of securing a loan. This score is usually a three-digit number that represents your credit history. Your credit history comprises previous debt payments such as paying credit card bills, paying loan equated monthly instalments (EMIs) etc.

For loans where pledging of security is not required, the lenders evaluate your credit score and credit report. Therefore, it is very important that you increase your credit score. Financial services companies that offer credit cards or loan may pass on your debt information to credit information companies. Based on the pattern of your debt payments, these companies then determine a credit score.

With a higher credit score, you can apply for a higher credit limit on a new credit card or loan account. Also, you can negotiate for a lower interest rate. Essentially, you shall have an easier time obtaining a loan with high credit score.

Keep tabs on your credit score at regular intervals for free with SBI General Insurance.

Enhance your savings with mutual funds

With mutual funds, a fund manager collects money from several investors and invests that money on your behalf. Investing in mutual funds is easy and you can do so using the systematic investment plan (SIP) feature. SIPs allow you to invest smaller amounts at regular intervals into your preferred fund. You can start SIP mutual fund investments with amounts as low as ₹500 at weekly, monthly or half-yearly intervals.

You can choose from a wide range of mutual fund offerings. Some common funds are explained below:

Equity mutual funds: These funds invest in company stocks and have the potential to generate good returns. However, such investments come with market risks.
Debt mutual funds: These funds invest in schemes that pay a fixed amount of interest to the investors. Liquid fund is a type of debt mutual fund wherein the invested funds can be withdrawn at any time.
Hybrid mutual funds: These funds invest in both, company stocks and fixed-interest schemes.

You can invest in a mix of equity and debt funds to balance the risks and potential returns.

Build a retirement fund with stocks

Consistently saving money now allows you to enjoy a better quality of life in your later years. However, the value of money decreases with time due to inflation. Inflation is the rate at which the price of goods and services increase. One way you can battle inflation is by investing in stocks.

A stock is a type of investment wherein you invest money in a company. Through stock market investments, the company can raise money to fund various costs required to run the business. If the company makes profits, the stock price tends to increase. The difference between the stock price at the time of purchase and the price at the time of sale is your profit and the buying and selling of stocks happen in a stock market. Depending on the number of buyer and sellers for a particular stock, the stock price can rise or fall. This is known as market risk.

You can potentially reduce the market risk by staying invested for longer durations. Investing in stocks of different companies and sectors instead of adding all your eggs in one basket can also help minimise the risk. Plus, staying invested for longer allows you to save up money for funding your needs and wants during retirement. Note that you can only reduce the market risk and not eliminate it completely.

Invest in your health

Since inflation also impacts healthcare, investing in your health should be one of the most important financial resolutions for the year. To cope up with the rising medical costs, you can invest in health insurance. It acts as financial protection against medical uncertainties. With health insurance, the insurance company promises to cover certain medical costs up to a certain specific limit known as the sum insured.

Health insurance covers medical costs associated with a wide range of diseases and conditions. These costs typically include hospitalisation, medication, diagnoses and consultation fees, to name a few.

Secure yourself and your loved ones with Health Edge

Health Edge from SBI General Insurance is a truly digital health insurance offering that comes with 9 basic covers. This policy offers a maximum sum insured of ₹25 lakh which you can restore without any limit if you opt for the unlimited refill benefit add-on. You can opt for individual plans or share the sum insured with your family members with the family floater plans.

With the Health Edge policy, you can receive cashless treatments at numerous network hospitals. The plan covers in-patient hospitalisation, day-care treatments, medically-necessary bariatric surgery, advanced procedures, among others.

With our completely digital buying process, you can purchase Health Edge online. You can also choose from 18 optional covers to customise your Health Edge plan as you desire. For a stress-free insurance buying journey, Health Edge’s bundled add-on covers should definitely be considered. Additionally, you can save money by opting for longer policy tenures or by purchasing individual insurance for your family members.

Download the SBI General Insurance app to manage your Health Edge policy on-the-go.

Disclaimer: The above information is indicative in nature. For more details on the risk factor, terms and conditions, please refer to the Sales Brochure and Policy Wordings carefully before concluding a sale.

Check out: https://www.sbigeneral.in/blog-details/four-facts-about-health-insurance-to-learn-from-cricketer

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