- Review your Insurance: You may want to review if you have adequate life insurance (we suggest term life cover), health insurance, critical care insurance, and property insurance (rare events like floods in Chennai do happen and an insurance will come in handy in those times).
- Review your financial goals: You may want to identify your top few goals (for instance retirement, major life goals – kids’ education, weddings, aspirations like entrepreneurship, travel, purchase of property, philanthropy etc) and see if you are putting away enough to fund these goals.
- Review your expenses: You may want to look at the big ticket items – items that represent more than 2% of 2015 expenses and see if some of these could be avoided (with no or limited impact on the quality of your life) to help fund your financial goals.
- Review your liabilities: You may want to look at your liabilities like EMI’s, other debts that loans that you are paying off to see if these can be accelerated. Interest burden from debt tends to be quite high and one is better off being debt free as soon as possible.
- Review your investment performance: You may want to look at your asset allocation and review their performance – this will help you analyze if your investments are helping you to meet your financial goals.
We acknowledge these 5 things are boring and really not the fun things one wants to do during holidays. We promise you that these will take only a few hours and will be worth the time invested. Please remember to apply the “pareto principle” and focus on 20% of the items that represent 80% of the review, this way you are reviewing the most important things first. Once you are done with this review you can take on the New Year with a fresh slate and look forwarding to enjoying it with a free mind.
Hope you have an easy review and wish you great New Year!!!