ByTheRupee - Personal Finance Show

Episode 08 : 6 Essential things to do at the start of the Financial year !

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Hello Ramesh, It's Suresh here , Listen It's March, I got to save taxes and you suggest to me where to invest to save taxes?

Ramesh : Invest in GetRich scheme and LostMoney Scheme.You shall save Tax.

Suresh: Alright I shall do it. …

Is your life also very similar to this? Then let's start the financial journey from Start of April

New Financial Year, Let's take the right step ahead :

  1. Review life insurance cover:  Following significant life events like marriage, becoming a parent, buying a house, etc., your responsibilities increase significantly.  You need to make sure that your life cover is sufficient to cover all these additional responsibilities. As a thumb rule make sure you are insured with 10 to 15 % of your term insurance and also have cover for your debt such as a housing loan or any other loan.
  2. Review Health insurance:  With ever-growing hospitalization costs, it's always good to see how much health insurance you have. Always have health insurance cover  for your family.Also, with the life events such as marriage or becoming a parent make sure to cover your spouse or children from day 1. The most convenient way to achieve this is by converting your health policy into a family floater and increasing the cover. This ensures continuity of the policy, and you don’t miss out on any benefits.
  3. Start Tax planning: It is best to start your tax planning early in the financial year. That’s because you have enough time to calculate how much you need to invest to save the maximum tax possible and evaluate all options available. Having a SIP or NPS or PPF that helps you save tax over the year will ensure that you benefit from the ups and downs the markets might experience.
  4. Pay off excessive Debt: Do you have high-interest personal loans or credit card debt that you are rolling over by paying a Min payment every month? Plan ahead to close the debt at the earliest with careful planning and use of bonus in closing high interest 18-30% loans. Also, with this not only are you going to save a lot of money but also get a chance to improve your credit score.
  5. Increase SIP by 10% With a salary hike, increase your monthly investment such as mutual fund SIP or NPS or EPF by 10% every year. By this, you can achieve your financial goal early.
  6. Review your Goals : The start of the financial year is a good time to review your progress towards your goals. For instance, if you were planning to buy a car, the prices might have seen an above-average increase due to high input costs. In such a scenario, you will need to recalculate the amount you will need to invest every month to have the amount you need when the time comes. Additionally, if there is a big change in your life stage in the last year like marriage, buying a home or even becoming a parent,  you might have to rework the priority or add new goals.

    7. Before concluding, Do check out www.bytherupee.com for more articles and podcasts on personal finance. Also comment below on what topic you would like to know more about. Keep Subscribed to the channel

    Let’s dive back to the preparation for the financial year…


    Summary,  Taking these steps will help you better your financials and ensure a smooth financial journey in the years to come.




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    ByTheRupee - Personal Finance ShowBy Darshan