Money Mantras from Top Financial Advisors: Wealth Resolutions 2024

Money Mantras from Top Financial Advisors: Diwali is a festival in India that marks the start of a new year for many people. In the case of some, it means starting to look at old investments again or finding new ways to make money. This is clear from the fact that many New Year’s resolutions are about improving bank accounts and wallets. In fact, money is a common topic for New Year’s resolutions.

Money Mantras from Top Financial Advisors

A lot of personal finance experts say that making money mantras and sticking to them can help you get along better with money. Before making a list of your financial goals and coming up with money mantras to go with them, you should focus on developing a positive attitude about money. The following points were gleaned from talking to well-known personal financial advisors:

“First, don’t keep looking at markets,” said Suresh Sadagopan, founder of Ladder7 Financial Advisories. Keep investing the amount of money you’ve already decided to spend. When investing, there is no way around being disciplined, consistent, and patient. It’s not smart to follow trends and move your money from one place to another. Don’t change your plan or the way you’ve already decided to allocate your assets.

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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, founder of Basu Nivesh and a SEBI-registered investment advisor, said, “Start by taking a fresh look at your life insurance, health insurance, accident insurance, and emergency fund.” Check to see if they are enough. If not, make it a priority to take care of these important parts of your personal finances. Also, don’t invest unless you have clear goals. Making investments just because you have extra money or because someone else told you to can hurt your finances. Write down your financial goals before you start investing. Aside from that, you should be aware of the flaws in the world and the fact that success is temporary. Don’t put all of your faith in one asset class just because it did well in the past. Once you know what your goals are, you can start allocating your assets correctly, which is an important part of managing risk well.

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.”

Setting up money mantras is one of the most important things you can do to get a better handle on your spending and make smart decisions. Setting up automatic transfers from your checking account to your savings account will also make saving and investing easier. Lastly, put money into learning more about different tools, investment options, and methods. You’ll be better at making smart financial choices if you know more about money.