Makar Sankranti 2023 - Make your Finances Fly High like your Kite

12 January, 2023

​​​​​​​The Indian festival of Makar Sankranti is among the most fun festivals; a time to gather with our family, enjoy delicious festive treats, and, of course, participate in kite flying competitions. It reminds us about the joys of family life and how we always wish for our family’s happiness and security. One way to ensure their security is through prudent financial practices. This Makar Sankranti, take these necessary measures to make your finances fly high like your kite.

Makar Sankranti 2023 – Make Your Finances Fly High

Here are some sound financial practices to enhance your personal finances.

• Be Smart About Fund Allocation
  
  Smart investors follow the 50-30-20 mantra of money spending. They spend 50% of their income on essentials, 30% on leisurely expenses and save the remaining 20%. However, you can always play around with these ratios. While you needn’t modify your mandatory expenses, you can reduce your leisurely spends to 20%, and save 30%. This simple change can make a huge difference and help you achieve your financial goals faster.
  
  

• Prioritise Diversification
  
  The cardinal rule to make your finances fly high like your kite is to ensure you don’t put all your eggs in one basket. You must consider the risks and rewards and diversify your investments into instruments offering a fixed cash flow and variable returns. You can adjust the ratio of your equity-to-debt investments based on your risk profiles. Also, consider short, medium and long-term Investments to cover all your bases.
  
  

• Set Specific Goals
  
  Setting specific goals gives you a sense of purpose and direction. Break down your bigger goals, into smaller achievable goals. For instance, if you wish to send your child abroad for education, determine an amount to add to their college fund each year, and ensure you achieve that goal, while increasing the savings amount annually. This same rule applies to creating a down-payment corpus for a house, a small business, etc.
  
  

• Consider Alternate Investments
  
  Keeping up with the times is another excellent way to make your finances fly high. Look beyond traditional equity and debt instruments and consider high-yielding alternate investment avenues. For instance investing in Real Estate Investment Trust (REIT) allows you to earn dividends without actually buying, managing, or financing properties. Speak to your investment advisor or financial planner about more information about alternative investments.
  
  

Now that you know how to scale up your finances, you can take steps in that direction. The first step towards financial freedom begins with opening a bank account. HDFC Bank offers Savings Accounts, Fixed Deposits and Recurring Deposits, among other products and services to help you achieve your financial goals. So, give your family the gift of financial freedom this Makar Sankranti – start investing today.

To Open your Demat Account with us, Click Here.

Click to continue reading further about Difference Between Savings and Investments.

​​​​​​​* 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. You are recommended to obtain specific professional advice from before you take any/refrain from any action. Investments are subject to changes in tax laws. Please contact a professional consultant for an exact calculation of your liabilities.