Personal Finance Guide: How to create a budget for a prosperous 2024

financialexpress.com:

At the beginning of any New Year, a majority of people want to start afresh, and make resolutions for a happy and prosperous future. Investors also take a resolution to save and invest more in investment avenues giving higher returns. However, amidst economic growth, the shadows of inflation and global uncertainties add complexity to investment strategies and, therefore, creating a robust investment budget becomes paramount.

Making a budget in the beginning will ensure that you achieve your goals and readjust your income and expenses based on your requirements. As an investor, you must always be ready with a budget and your investment options to ensure the new year yields healthy returns and your money grows without many fluctuations. Let’s look at some crucial insights for taking judicious financial choices.

Understanding your cash flow is pivotal in determining your investable surplus. Assess your monthly earnings (salary, dividends, etc.) and categorise your spending (necessities, lifestyle, debt repayments). Check your comfort level with market fluctuations. Are you a conservative investor seeking stability or open to higher risks for potentially greater returns?

Clearly define your investment aspirations. Are you saving for retirement, a house down payment, or your children’s education? Setting clear goals will steer your asset allocation strategies. Assess your current portfolio (stocks, mutual funds, etc.). Evaluate the performance and readjust based on your expectations. Opt for Systematic Investment Plans (SIPs) in mutual funds for disciplined and convenient investing, benefitting from rupee-cost averaging that balances market volatility.

Also Read: 10 smart money moves to make in 2024 for a healthier financial