New Year 2024: 4 personal financial advisors advise important money mantras


In India, Diwali signifies the commencement of a new year for numerous individuals. For some, it marks the beginning of revisiting existing investments or exploring new opportunities for financial growth. This is evident in the prevalence of financial resolutions aimed at enhancing bank accounts and wallets, making money a commonly chosen topic for New Year resolutions.

Many personal financial experts share how planning money mantras and adhering to them can help you develop a better relationship with money. Prioritize cultivating a positive mindset about money before charting out your financial goals and formulating corresponding money mantras. Insights from discussions with renowned personal financial advisors yielded the following points:

Suresh Sadagopan, Founder, Ladder7 Financial Advisories said, “First, do not keep looking at markets. Keep investing as per what you have already decided to invest. There is no substitute for discipline, regularity, and patience while investing. Do not get swayed by fads and take away money from one place and invest in another place. Stay with your plan and stay as per the strategic asset allocation already decided.”

Preeti Sharma, Partner, Tax & Regulatory Services, BDO India shared, “The substantial part of your total income is earmarked by the Government towards taxes either collected directly when you earn (income-tax) or indirectly when you spend GST. While defining your financial goals, whether it’s saving for home, retirement, education, foreign holiday, or buying new electronics for your house, educate yourself about tax impact.”

“The tax collected at source (TCS) may increase the overall cash-out flow for most of your foreign remittances (education, holiday trip, etc.). Tax deducted at source (TDS) provisions may reduce your income in hand such as salary, professional fee, rental, interest, etc. The engine capacity of the car will immediately have an impact on the applicable GST rate and the overall cost. A well-planned tax strategy will help you to increase the actual cash remaining in your hand and the overall return on your investment,” added Sharma.

Basavaraj Tonagatti, a SEBI-registered investment advisor and founder, Basu Nivesh added, “Begin by reassessing your life insurance, health insurance, accidental insurance, and emergency fund. Evaluate whether they are sufficient. If not, prioritize filling these essential aspects of personal finance. Also, avoid investing without clearly defined goals. Making investments solely due to surplus funds or external suggestions can have detrimental effects on your finances. Before diving into investments, outline your financial goals. Apart, acknowledge the imperfections in the world and the transient nature of success. Refrain from relying solely on one asset class based on past performance. After identifying your goals, implement proper asset allocation—a crucial aspect of effective risk management.”

Tonagatti added, “Once you’ve constructed a portfolio aligned with your financial goals and risk tolerance, adhere to it. Steer clear of the constant influx of news and market noise. Recognize that the majority of financial news is irrelevant to your wealth creation journey. Success in personal finance and investments hinges on the virtues of patience and consistency. Having followed the aforementioned strategies, the key is to persist with them consistently and patiently as the way forward.”

Hiren Thakkar, Chartered Accountant Proprietor, Hiren S Thakkar & Associates emphasized, “Understand your risk appetite and identify the type of investor you are. Try to restrict percentage-wise investments in equities, debt, and precious metals. Check asset allocation at the beginning and end of every year. Never ignore valuations.”

Establishing money mantras is a pivotal step in gaining insight into your financial expenditures and making well-informed decisions. Additionally, simplify the process of saving and investing by arranging automatic transfers from your checking account to your savings account. Finally, invest in expanding your knowledge of various tools, investment choices, and techniques. The more you understand about money, the more adept you’ll be in making sound financial decisions.

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