Financial Planning for 2021


A year that taught us the true meaning of life.

A year that taught us gratitude and kindness.

A year that taught us contemplation.

A year that taught us the significance of little things.

So much has changed this past year that most of us will agree that marching into 2021 almost feels like a rebirth. With routines upended, we have all had to realign our lives and find a new rhythm. As we move on, we are all asking these questions: Where does the world go from here? Are things ever going to be the same? Though anyone does not have a straight answer to that, everyone is looking forward to 2021 with immense hope and optimism. We all need to put the past behind and find new reasons to celebrate and cherish life.

Lessons from the unprecedented year

These are lessons that not only helped us survive 2020 but will remain with us forever and ensure we are prepared for anything that life may throw at us.

Creating a contingency or emergency fund

A lot of us were unprepared when the pandemic hit. We did not have an emergency fund that could see us through a few months. This became the biggest worry for families whose businesses were shut and those who saw their salaries slashed. While the expenditure remained the same, income was adversely hit. The biggest lesson was the importance of having an emergency fund. It is recommended that one should have an emergency fund that can take care of 6-9 monthsʼ of expenses-bills, EMIs, and other essentials.

Budgeting Wisely

Your financial success depends on your ability to budget well. Consider all variables when creating a budget: monthly expenses, EMI, loan repayment, insurance premium etc. Prioritise this over frivolous spending. Also, make a note of your financial goals.

Spend on what is essential

It is easy to get carried away by materialistic possessions. Do you really need a bigger TV, a fancier car or another pair of shoes? If there is one thing that the year 2020 taught us, itʼs that none of these matters. What matters is the health of your family and financial stability. Money spent on non-essentials is better saved as a safety net when needed. The takeaway is “Save before you spend”

Buy Insurance

The pandemic has emphasised the focus on the importance of good health. We have seen numerous instances of the young and the healthy succumbing to the virus or other lifestyle-related diseases. Although insurance and investment are two different pillars of a financial plan, getting life insurance and a health insurance plan is nothing short of an investment. While you may consider going in moneyback or ULIP plans for their returns, a pure term life insurance plan for all earning members of your family, and a health insurance plan covering everyone are indispensable.

Diversify Investments

The pandemic highlighted the importance of having a diversified portfolio. Even though the long investment sentiment continues to remain positive, recurring adverse events can have a significant impact on your portfolio and your ability to meet future goals. A goal-based diversified set of investments across asset classes minimizes the impact of market volatility and helps to preserve your capital investment. It also gives you the flexibility to shuffle between investments to optimize your returns by taking advantage of market movements. You can take this opportunity to rejig your investments based on your goals, timeline, risk appetite and tax considerations.

Few important financial resolutions for prosperous 2021

After the year weʼve experienced, what better time to start your path to financial health than 2021?

  1. Commit to getting your finances on track
  2. Do not procrastinate financial planning process
  3. Set your goals
  4. Record your budget
  5. Save. Save somewhere. Anywhere
  6. Pay off debts, without default
  7. Protect what you love through appropriate insurance policy
  8. Pick investments as per your need and risk appetite
  9. Review your portfolio periodically
  10. Take professional help to plan your finances.

At Moneyedge we are ready to take a leap

As a responsible and progressive organization we always strive to be in a position to help our clients accelerate their growth. Our major initiatives in this area include the digitization of all our major services. Our online insurance portals are up and running and we recently launched a fixed deposit online purchase portal, partnered with many reputed brands from financial domains.

Enabling our clients to invest judiciously and with ease is among our top priorities going forward, and you will continue to hear more about our efforts on this front as we put it at the heart of our investment offering. Hence, we have partnered with reputed brands from the financial domain for insurance, Mutual funds as well as Loan requirements. All essential financial services under one umbrella and in sync with the bespoke plan is our new year gift for all our valued patrons.

In 2021 and forward, we foresee numerous opportunities to build wealth. Itʼs true that several factors will affect our lives, but it will be less challenging for those who have planned for it than for others.

The beginning of 2021 is a blank slate. With Moneydge you have the right tools, the vision and the foresight to make it big. All you need to start doing is put the pencil to the paper and start realizing your goals in the new normal.

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