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By Surya Narayan Pradhan
Bhubaneswar: After the Christmas, people usually make a New Year’s Resolution with glee and delight to fulfil aspirations and better their life in the year ahead.
Be it quitting smoking from January 1, eating less quantity of junk food or start an exercise programme, people take a pledge for a meaningful living.
In an effort to help readers overcome their worries and set a financial goal, odishatv.in talked to experts to explore what could be the right New Year’s Resolution for someone when thought is given on investment and savings.
Prof Subhrakant Padhi of XIMB said, “Someone should take a pledge to keep aside minimum 10% of his/her total income for savings and investment purposes. The investment mark could be higher in case of persons earning more annually.”
“For a lower middle class person with monthly income of Rs 20,000 to Rs 25,000, the 10% allocation for savings and investment is perfect,” noted Padhi adding that the amount should be distributed proportionately for insurance and mutual fund investment for a secured future.
“As nobody knows what is stored in the future, someone should go for health insurance in 2017. Besides, the Systematic Investment Plan (SIP) of Mutual Funds would be the nice way to go for a long-term investment with a lesser amount of Rs 500 or Rs 1,000 monthly,” Padhi stated.
For a lower middle class person, it is nearly impossible to save more than 10% of his/her total income, he mentioned.
Seeking an advice from a financial adviser present at banks and non-banking financial organisations would help a layman to get better clarity on the type of funds available in the market, he added.
Also read: Save for rainy day: Kids must learn the mantra at home
An investment in real estate and owning a home in 2017 could be another option for the New Year’s Resolution, Padhi suggested.
Cautioning to stay away from big expenses during festive occasions, the XIMB faculty member said, “Someone should limit his/her festive spending to 10% of total income.”
Mostly, savings and investment are personal choices and the planning depends on someone on what kind of financial goals he/she has set. But parking some amount of the total income on monthly basis would be a wise move, Padhi concluded.
