8 ways to plan your finances for a secure and prosperous New Year

livemint.com:

Reduce credit card debt: Refrain from using credit cards for routine expenses and prioritize settling outstanding balances. Give priority to high-interest debt: Concentrate on settling loans with elevated interest rates initially to reduce overall interest payments. Establish a debt payoff strategy: Formulate a budget that designates ample funds for repaying debts and adhere to it.

Prevent incurring more debt: Refrain from acquiring additional debt unless it is essential. Then, you must focus on balancing your assets and liabilities. This is not difficult if you Emphasize building assets: While repaying debt is crucial, ensure not to overlook saving and investing to grow your asset portfolio.

Sustain a favourable net worth: Aim to maintain a positive and growing difference between your assets and liabilities (net worth) over time. Evaluate and modify: Routinely assess your financial status and adjust your expenditure, savings, and investment approaches as necessary. Compiling a list of assets and liabilities is insufficient.

Crucially, safeguarding your savings and investments requires careful consideration of evident financial risks eroding your earnings. To effectively manage these risks, you must, therefore Safeguard your finances: Explore life insurance and critical illness insurance options to shield your family from financial adversity in the event of unexpected circumstances. Broaden your asset portfolio: Distribute your assets among various asset classes to reduce risk and optimize potential returns.

Prepare for retirement: Initiate early savings for retirement to guarantee financial security during your later years. Regularly reviewing and adjusting your financial state is also necessary. This will help you to M