6 Things you have learnt in 2021 that you should take into the new year 2022
There is always optimism, excitement and hope when the new year is around the corner. From new year resolutions to career goals to travel plans, everyone has a list of things they want to do. And personal finances always finds a place on this list.
To ensure that your finances sail smoothly in the new year, you can start by re-evaluating your spending and saving patterns. So, as you step foot into 2022, use the past year as a reference and frame your financial goals according. Here are a few tips to help you out.
1) Re-evaluate your budget
The months of lockdown may have negatively affected your income while bringing down your expenses to some extent. Also, it is easy to lose track of your monthly expenses in the absence of a monthly budget. So, as you begin the new year, it is time to critically evaluate your routine expenses and look for ways to cut down on non-essential costs.
Ask yourself whether you have been saving enough to build an emergency fund. If you haven’t, start now by investing in risk-free options like Fixed Deposits or Recurring Deposits. You can even consider Mutual Funds for higher returns. And if you have loans to clear, first chalk out a plan to repay your debts and then invest strategically in the new year.
2) Don’t deposit all your money in one bank account
Over the years, the unfortunate crisis faced by certain banks has made us realise that keeping all your hard-earned money in just one bank account may not be the best idea. Also, a high-interest rate should not be your only criteria while opening a Savings Account. Therefore, it is safer to maintain your money in a trustworthy and reliable bank like HDFC Bank. Besides, as per the latest RBI norms, each bank account deposit is insured up to Rs 5 lakh. So, you will be able to make full use of this regulation when your deposits are spread across banks.
3) Go on a spending fast
The pandemic has caused a dramatic shift in the spending patterns of people. So, taking lessons from the past, try to limit unnecessary spending in the new year too. But this does not have to mean you stop spending entirely; learning the knack of restraint is important. For instance, shop for new clothes once in three months instead of every month, or order in food once in two weeks, instead of every weekend. A spending fast is a great way to curb impulsive buying and to stay on track with your financial priorities.
4) Prioritise insurance
The pandemic has underscored the importance of having adequate life and health insurance. Experts suggest that your Life Insurance cover should be equivalent to at least 10 times your annual income. And a comprehensive health insurance plan with critical illness coverage is indispensable in today’s day and age. Therefore, sign up for health and life insurance, if you haven’t already and ensure that your family members are covered too. Insurance not only provides financial assistance in medical emergencies but can also help save on taxes. With your HDFC Bank Credit Card, get 5X Reward Points on minimum spends of Rs 15000 on insurance.
5) Find a second source of income
Building multiple income streams can save at the time of a financial crisis. And the new normal has brought remote working and gig economy into mainstream awareness. So, this year, make a resolution to be more productive and put your skills to good use by signing up for freelance opportunities and earning extra cash. You can even start blogging or vlogging by creating educational or entertaining content. With a bit of ingenuity, you can not only supplement your income but also add value to your resume by developing a side gig.
6) Make smart cuts to monthly bills
Whether it's your utility bills, internet or phone recharge or subscription fees, look for smart ways to make these monthly payments and bring down your outgoing costs. For example, with HDFC Bank's e-wallet - PayZapp - you can earn CashBack on paying certain bills and now you can even send money to other bank accounts with its newly added UPI feature.Or with SmartPay, you can automate bills payments using your HDFC Bank Credit Card and earn assured rewards and CashBack. What's more, get up to Rs 1800 CashBack + Rs. 800 vouchers on SmartPay.
Also, look for smart ways to save while spending. With your HDFC Bank Debit Card, get discounts on dinning, shopping and bookings. .With your HDFC Bank Debit Card, get flat Rs 50 off on online dinning, flat Rs 100 off on online apparels shopping and flat Rs 500 on travel, air and hotel booking. (T&C apply).
The best way to start a new year is by staying hopeful and optimistic. So, let go of yesterday’s history, stop worrying about tomorrow’s mystery and enjoy today because it is a gift – the present.Here’s wishing you a happy and peaceful 2022.
*Terms & conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.