Time to do the financial planning for 2009--

Year 2009 has already knocked our door for future and it’s the right time to learn lessons from the current financial turmoils.We must set specific goals for personal finances as it is rather not going to cost us anything but inturn will increase ROI.Some timely goals and baby steps that can help you do your financial planning.

Control your expenses & stick to the budget:You are more likely to face financial problems, if you have been extravagant in your expenses. you need to adhere to some financial disciplines.Always remember that a rupee saved is a rupee earned. Therefore, stick to the discretionary budgets so that you can handle the uncertainty in the non-discretionary expenses.
Take control of your investments:Resolve to protect your finances as the market storm rages on. Take the time to build up your emergency fund, and set reminders to regularly review your portfolio’s asset allocation.
Turn the problems into opportunities: Look hard enough and you can find a silver lining to just about every aspect of the struggling economy, from falling home prices (lower property taxes) to bankrupt retailers (great close-out sales).Look out for bargain on all-time favourite stocks and mutual funds to accumulate for longer term.
Be debt free: In the falling interest rate scenario, it is good to repay all your debts. In recessionary periods, it is always better to be debt free and use cash more often. Be better about savingThe easiest, most painless way to build a nest egg is to choose a low-cost, diversified investment plan and authorize the plan/fund to deduct a set amount from your account every month.
Have an emergency fund in portfolio: Having an emergency fund in your portfolio is an ideal way to tide over a family crisis or meet unexpected expenses. Therefore, the need for maintaining emergency funds, particularly keeping some cash at home or in a bank account, has always been emphasized by our forefathers.
Have realistic expectations: There’s nothing wrong with hoping for the ‘best’ from your investments, but you could be heading for trouble if your financial goals are based on unrealistic assumptions.However, it doesn’t mean that you should always expect the same kind of return from the stock markets. The current market meltdown is a case in point.

Hope you all will keep an eye on your investments and management of personal finances with the right plan of action.Wish you all a very Happy and Prosperous New Year!!