Call Us

FOR EXISTING POLICY

Have query on premium, payout or any servicing need?

Call us:

1 860 266 9966

Monday - Saturday | 10 am - 7 pm IST

Call charges apply

Dedicated NRI Helpdesk:

+91 22 6251 9966

Monday - Saturday | 10 am - 7 pm IST

Call charges apply

FOR NEW POLICY

Want to buy a new policy online?

Call us:

+91 22 6984 9300

Give missed call for a call back:

+91 11 6615 8748

Monday - Sunday | 8 am - 11 pm IST


Exclusively for NRIs:

Call us:

Give missed call for a call back:

+91 11 4473 0242

Available All Days | 24 x 7

Language

Back Arrow Icon
Close Button
Back Arrow Icon
Close Button

Need assistance in choosing the right insurance plan? Get a call from our Expert.

Need assistance in choosing the right insurance plan?Get a call from our Expert.

+91 dropdown arrow

Select Plan dropdown arrow
  • Term plans
  • Saving plans
  • Wealth plans
  • Retirement plans
  • I don't know/I need help

TATA AIA Life Insurance Co. Ltd will send you updates on your policy, new products & services, insurance solutions or related information. Select here to opt-in. T&C apply.

5 Resolutions You Need to Make to Become Financially Fit

9-June-2021 |

Getting in shape, eating healthier, and spending more time with loved ones are common resolutions people make at the beginning of the year. In addition, some people also have a savings plan on their list to create wealth for their future life goals. Sadly, the ongoing pandemic has stripped many people of the wealth they have amassed over time. Some have faced income reductions, putting better financial management and getting a regular income plan on top of their priorities.

However, regrettably, around 80% of people fail to stick to their new year’s resolutions. If achieving financial fitness and improving the way you handle finances feature on your resolutions list, but you have not succeeded so far, this article presents an actionable plan.

Here is a list of some new year financial resolutions you can make to achieve financial stability, along with guidelines on how you can stick to them. 

 

Resolution 1: Set Clear Goals of Financial Management

Want to tour a foreign country? Plan to buy a new house? Want to save for your child’s education? The first step to effective financial management is to identify your goals.

Whether you are creating a savings plan or thinking of investing in the stock market, knowing the ‘why’ helps you chart a clear roadmap. Having a list of financial goals enables you to understand your financial needs. With definite financial goals, you can figure out:

  • where you need to put your money to get the returns you need to achieve your goal

  • how much you need to invest

  • what expenses you need to cut down


Make sure you set down SMART, i.e., specific, measurable, adjustable, realistic, and time-bound goals. A realistic timeline will enable you to earn, enjoy your money, and save at the same time without financial constraints. In addition, it will further assist you in analyzing your risk tolerance capacity, directing you to investment instruments that suit your needs.

 

 
Resolution 2: Draw a Budget


Once you have clarity about your goals of financial management, it is time to manage your income on a day-to-day basis and budget your expenses.

  • Start by making a note of your income from all sources, fixed expenses like rent, utility bills, and so on.

  • Next, list out variable expenses such as entertainment.

  • Finally, tally your savings at the end of each month.

 

This exercise will give you a fair idea of your spending and where you can cut it down. For instance, you can cut back on the money spent on restaurants, movie theatres, or branded clothes.

After you create a monthly budget, stick to it. You can achieve this by inculcating habits such as carrying cash while shopping, preparing a list of groceries to buy and adhering to it, etc.

Remember to compare the actual expenditure to your budget at the end of the month. There might be some deviation, but it will add to your savings plan in the long run. 

 

Resolution 3: Get Adequate Insurance

 




Experts repeatedly stress the importance of insurance. Regardless of your age, it is essential to secure your loved ones against unforeseen events that could lead to financial instability.

Safeguard your dependents’ future by purchasing life insurance. First, calculate the coverage amount sufficient for your family. Next, evaluate your family’s lifestyle costs, the number of dependents, and how long they will need financial support. Ideally, the amount should be 10 to 12 times your yearly income.

If you are still in the early stages of your career or don’t have a high budget, term insurance is a viable option. The payout can help meet your loved ones’ living expenses in case of an unfortunate event.

A life insurance plus savings policy is ideal if you want to build wealth. Along with protection, a savings insurance policy with a regular income plan ensures an alternate source of income. Such schemes can help you tide over temporary financial hardships and grow your wealth.

With Tata AIA pay premium online option, you can get insured with a few clicks at any time convenient to you.

Do not forget to get a comprehensive health insurance plan to take care of hefty hospital bills in medical emergencies. 

 

Resolution 4: Start to Invest

This is a piece of advice that you may have received as soon as you began earning. Investing from an early age allows you to enjoy the power of compounding and multiply your wealth. But, if you have not yet started, it is never too late to begin your savings plan.

Once you assess your goals, short-term and long-term, identify investment avenues that fulfil your needs, and understand your risk appetite, you can invest in the capital market. If you are new to this, you can buy a ULIP from a reliable insurance provider. It will help you meet dual objectives – you can invest in market-linked securities and insure your family’s future at the same time. If you wish to mitigate the effect of market fluctuations, you can opt for periodic investments with a Systematic Investment Plan or SIP for long-term investment. 

 

Resolution 5: Create a Contingency Fund

Life is unpredictable. Accidents, health issues, economic crises, and such hard times don’t come with a warning. Therefore, apart from insurance, having some liquidity with an emergency cash reserve can save you on a rainy day.

You must have at least six months’ monthly expenses, including EMIs, as your contingency fund. Create a budget for it and put aside some amount every month towards your emergency nest egg.

It is advisable to invest this money in less volatile products that can be liquidated quickly. Some options include bank deposits, liquid funds, SIPs, or a guaranteed# savings insurance policy. Such a fund prevents you from draining the savings you are building for your primary life goals in times of need. 

 

Final Words

Financial discipline is the key to becoming financially fit. So, add the resolutions described here to your new year financial resolutions and stick to the plan to accomplish your financial objectives on time.

L&C/Advt/2021/Jun/0821

Get complete protection at affordable cost & tax benefits

+91 dropdown arrow
  • +93 Afghanistan

TATA AIA Life Insurance Co. Ltd will send you updates on your policy, new products & services, insurance solutions or related information. Select here to opt-in.


 

Looking to buy a new insurance plan?

Our experts are happy to help you!

+91

Select plan
  • Term plans
  • Saving plans
  • Retirement plans
  • Wealth plans
  • I don't know/I need help

TATA AIA Life Insurance Co. Ltd will send you updates on your policy, new products & services, insurance solutions or related information. Select here to opt-in

People Like You Also Read

Difference Between Close Ended & Open Ended Mutual Fund | Tata AIA
Read More
Index Funds vs. Mutual Funds: What is the Difference?
Read More
How to Choose the Right Payout For Your Term Policy?
Read More
5 Smart Investment Options That Can Give You A Monthly Income | Tata AIA Blog
Read More
ELSS vs ULIP: Understanding the Key Differences | Tata AIA Blogs
Read More
Difference Between Recurring Deposit & Fixed Deposit | Tata AIA Blogs
Read More
What is KYC? The Only Guide You Need | Tata AIA Blogs
Read More
NFO vs IPO: Understanding the Key Differences | Tata AIA Blogs
Read More
How To Invest In NFO? | Tata AIA
Read More
Top 5 Questions Asked About NFO | Tata AIA
Read More

People Like You Also Read

Difference Between Close Ended & Open Ended Mutual Fund | Tata AIA
Read More
Index Funds vs. Mutual Funds: What is the Difference?
Read More
How to Choose the Right Payout For Your Term Policy?
Read More
5 Smart Investment Options That Can Give You A Monthly Income | Tata AIA Blog
Read More
ELSS vs ULIP: Understanding the Key Differences | Tata AIA Blogs
Read More
Difference Between Recurring Deposit & Fixed Deposit | Tata AIA Blogs
Read More
What is KYC? The Only Guide You Need | Tata AIA Blogs
Read More
NFO vs IPO: Understanding the Key Differences | Tata AIA Blogs
Read More
How To Invest In NFO? | Tata AIA
Read More
Top 5 Questions Asked About NFO | Tata AIA
Read More
Website Logo Image Icon

Tata AIA Life Insurance

A joint venture between Tata Sons Pvt. Ltd. and AIA Group Ltd. (AIA),  Tata AIA Life Insurance  is one of the leading life insurance providers in India. We post everything you need to know about life insurance, tax savings and a variety of lateral topics such as savings and investments in this space. You can access and read a host of different blogs, articles and pages at the Tata AIA Life Insurance Knowledge Center or get in touch with us with any queries or questions!

View all posts by Tata AIA Life Insurance