As we step into the new fiscal year of 2024-25, it’s essential to set the right tone for success. Whether you’re a professional, an entrepreneur, a student, Non-Resident Indians (NRIs) or Overseas Citizens of India (OCIs) looking to make the most of India’s growth opportunity, the beginning of a new financial year offers a prime opportunity to reassess, strategize, and set goals for a stress-free year ahead. Here are 5 things you need to do at the start of FY 24-25 to plan for the successful year ahead and realize your financial goals.
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5 Things to do for perfect F.Y. 2024-25 financial plan
1. Review your income and expenses
Looking into your cash flow is one of the extremely important things to do in FY 24-25 to know your financial situation better and identify areas where you can do better. By going through your income and expenses from the past year, you can get a clear idea of what impacts your financial goals and set your FY 24-25 financial plan. The process of looking into your cash flow is to analyze :
- Spending Pattern, This process gives you an understanding of where your money could be overspending and figuring out unnecessary expenditure. Doing this is just not to make your expenses more planned but to save you the unnecessary cost of spending.
- Savings: Keeping an eye on your savings allows you to see if you’re meeting your financial goals, like saving for a home or retirement. This helps you decide if you need to adjust your savings plan or increase your savings.
- Understanding how money moves: Looking at how your money flows over time helps you find seasonal changes or unexpected costs, which might mean you need to modify your budget. This helps you get ready for future expenses and avoid surprises.
- Smart financial decisions: Analyzing your cash flow helps you make smart financial decisions. You can use this information to decide how to pay off loans, invest, and make your budget plan wisely.
- Make achievable financial goals: Understand your real spending and saving habits as that will help you set achievable financial goals that match your situation. This approach prevents setting unrealistic expectations and making achievable financial goals.
- Financial Responsibility: Regularly checking your cash flow encourages financial responsibility, helping you stay on track with your goals. Keeping an eye on your finances can prevent regrets and make you feel in control of your money.
Also read: What is the 15x15x15 Rule In Mutual Funds for NRIs?
2. Tax planning
It is great to start tax planning early so that you have a clear idea of how much you need to invest to minimize your tax liability and make the most in the FY 24-25 financial plan. Most importantly in the beginning you have the entire year to plan and invest and if you are someone who invests in ELSS and NPS you need to plan for at the start of the year, having SIP will help you save tax irrespective of the ups and downs of the market throughout the year. An unplanned investment might land you at a place where you invest when the market is down and the investment amount will be huge.
Also read: Getting ITR Notice as NRI/OCI? Here’s what you need to know
3. Liquid funds Availability
To secure your finances, aim to save a minimum of six months of your income for any emergency. This could be achieved by.
- Setting your budget to track your expenses and income.
- Plan to save a portion of your monthly income every month, even if the portion is small.
- Set up automatic transfers from your checking account to your savings account each month.
- Keep your money in High-interest savings accounts to grow your savings faster.
4. Life Insurance
There are many major life events that we need to plan like getting married, buying a house, family planning, buying a house, etc. As these are very important events, your responsibility is great here, you need to make sure that your life insurance covers all these. You need to figure out the best cover for yourself and additional responsibilities too. It should cover the following needs,
- Provide monthly income to your family members that depend on you.
- Cover loans.
- Money to cover Education and any other expenses related.
5. Monthly Investment
To reach your financial goal faster you should increase your SIP investment every year by at least 10%. By effective planning, one can even invest in an NPS which is the National Pension System. You can even open a Sukanya Samriddhi Yojana account if you have a daughter below 11 years old. Monthly savings can also help you achieve the retirement plan if you invest with planning from the beginning.
Also read: Best NRI Investments in India: Top 10 Investment Options for NRIs/OCIs in India 2024
Wrapping Up
The start of the F.Y. 2024-25 is an excellent time to set the stage for success in the year ahead. By reflecting on past spending habits, income, and expected increases in incomes and expenses, you can plan for the future and increase your disposable income. This will help you to build an investing habit and secure your long-term future without compromising on your present. Remember, success is not just about reaching your destination but also about the journey you take to get there. So, make the most of the opportunities that the new fiscal year brings and strive for excellence in everything you do.
Looking to Invest in India this new F.Y. 2024-25
NRIs can now download the SBNRI App and choose to invest in different NRI mutual fund schemes in India with ease. You can also get detailed investment advice from experts at SBNRI. Also, visit our blog and YouTube channel for more details.
SBNRI is an authorized Mutual Fund Distributor platform & registered with the Association of Mutual Funds in India (AMFI). ARN No. 246671. NRIs willing to invest in mutual funds in India can download the SBNRI App to choose from 2,000+ mutual fund schemes or can connect with the SBNRI wealth team to better understand Mutual Fund investments.
FAQs
Is there any new tax regime slab for 2024-25?
- Since it was an interim budget 2024, no major changes were announced in the tax regime for FY 2024-25.
What is financial year 24-25?
- Financial year starts on April 1 and ends on March 31. This year is different from Calendar year which begins on January 1 and ends on December 31. The financial year 24-25 means the period from April 1, 2024 to March 31, 2025.
