5 Habits To Give Up This New Year

Can't get enough of online shopping deals? Unable to stick to a budget? Feeling at sea with your investments? It may be time to audit your financial habits. For most people, good financial habits don't happen automatically. You need to work on them.

As you usher in the new financial year, spare a thought for undesirable financial habits that could be hampering your prosperity.

Let's look at some financial habits you must give up to ensure a prosperous future for yourself and your loved ones.

Spending Without a Care

If you're guilty of spending most of what you earn, you need to consider downsizing your expenses. And when you start spending more than you make, you usually live on credit. 

In such a scenario, you will have no money left to save or invest. So, the first thing you should do is to categorise your expenses as necessities or luxuries. Based on this, work out a way to cut down on the latter. Once you do this, you will have enough money to set aside a fraction of your salary as savings. Though this may seem old-fashioned, a budget is the key to a financially sound future. In fact, drafting a budget can prevent you from overspending, too.

Not Being Clear about Your Financial Goals

You might have enough savings and an investment plan in place. But have you checked if it aligns with your financial goals? 

Any life investment plan, no matter how well-planned it is, can fail to deliver expected results if it is not oriented to meet your financial needs and goals. So, it is crucial to understand what you desire from your money. Also, evaluate your financial goals regularly, as they may change as you move ahead in life.

Investing Solely to Save Taxes

Contrary to popular belief, tax planning is not synonymous with financial planning. While it is essential to consider tax benefits when investing in a particular product, there's more to investments than just that. 

Other important factors, such as your long-term financial needs, your risk appetite and the purpose of investment, should feature on your priority list while investing.

Making Impulsive Financial Decisions

Are you guilty of investing in a certain product without completely understanding its purpose?

It's time you gave your financial decisions some thought to ensure they do more than catering to your impulses. So, do your research before giving in to the recommendations offered by peers. Find out whether it is the best-suited investment avenue for you and then take the call. 

Consult a financial advisor to help you plan and execute your investments the right way.

Ignoring the Importance of Life Insurance

The new financial year is the perfect time to embrace knowledge and bid goodbye to ignorance. So, if you've been holding out on buying a life insurance plan for a later date, it's time for a change. 

While you spend a huge part of your day working to secure your loved ones' future, you cannot ignore the uncertain nature of life. What better gift to give your family than to protect their future and give them the freedom to pursue their dreams?

Conclusion

So, this New Year, give your family the gift of a financially secure future. Consider iSelect - a completely customisable Term Insurance Plan that promises to take care of your family in your absence. It offers life insurance up to the age of 99 years and an option to augment the insurance with a terminal illness cover. You can also opt for an accidental cover that gives you a lumpsum in case of accidental death/total and permanent disability. What's more, this plan also offers an option to club in child care benefits and Steady Income benefits for when you retire. 

This year , let's embrace good financial habits and look forward to many more years of celebration with prosperity and happiness.