Make a fresh start in the new financial year by taking these important steps

As the new financial year 2021-22 begins, the memories of the previous FY is still fresh in our minds.

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Around this time last year, the Covid-19 pandemic led lockdown was already in force across the country. The government had announced several relief measures including the extension of the tax saving due date by three months. Several individuals had to settle for lower income, pay cuts and even job loss during the large part of the year. What came out as a wake-up call for many of those who were ill-prepared with their finances was to re-consider their insurance and investment needs. Uncertainties are abound in life and one has to be prepared for any financial emergency that may strike anytime. Start of a new financial year which every year starts on April 1 and ends on 31st March of the next year, provides such an opportunity to bring one’s finances to shape, if required.

Let us see how and what are those some of the important things that one needs to do early on so that the entire FY goes through smoothly. Young and new investors can take a cue from these points while the old-timers may consolidat their money matters. Here are few things to consolidate and take stock of in the FY 202122, for a better control of one finances in the years ahead.

Start with a plan in place

Do not initiate making any investments, tax savings or buying insurance unless you have a financial plan in place. Making financial decisions on ad-hoc basis might be financially damaging in the long run. There is a greater possibility of not making the right or under-provision for your needs, making untimely entry and exits from investments etc if a plan does not exist.

Save funds for emergency