Keep an eye on your finances even while you celebrate the coming of the new year. Remember to include your finances while setting your goals for 2023.

• Taking care of finances is like running a marathon.

• The efforts have to be continuous.

• With the new year just a week away, it's time to relook at your finances and set goals for 2023.

• And if you are seeking professional help for the same, we've got you covered. 

   

• We asked five financial planners what one’s money goals for 2023 should be.

• Too much volatility will be there at least in the first half of 2023… The debt market looks good overall.
• Debt funds for one to three years will be good.
• Investors can think of achieving 8-8.5 percent from debt funds.
• Direct equity will be volatile in the first half of 2023, global markets will be volatile as well.
• SIP and STP routes will be the best looking at volatility in the markets.

• Money goals should always be contextual.

• It should be aligned with what you want to achieve in 2023.

• One needs to think through what is important for them to achieve in 2023.

• For someone it can be getting free from loans, for another, it may be starting off on the retirement planning bit, for another, it may be putting aside money for educational goals.

• After identifying what they want to do, they will need to take focussed action so that the resolution gets carried out.

How do you know if you’re earning the right returns on your investment? Allow us to compare it with stock market/mutual fund returns for the same period.

• While everyone wants to beat the markets each year, let me remind you that no matter how confident you are about yourself and luck, always make sure you have an emergency fund in place.
• Not just in 2023 but at all times.
• Remember that emergencies don’t wait for emergency funds to be there.
• An emergency fund is the basic hygiene of personal finances.
• Also, get your insurance in place if not there.

• Nothing beats simplicity, and hence, you must focus on keeping your financial goals simple.

• To start with, you must: 

   

• Increase your savings by at least 10 percent

   

• Control unwanted/discretionary expenditure

   

• Be consistent in your equity investments

   

• Have adequate insurance in place

   

• Build a proper emergency fund.”

• Years change. Fundamentals don't change.

• The period of the earth going around the sun should not have any impact on money goals.

• Though goals are individually specific, money goals broadly are:

   

• Spend less than you earn

   

• Invest the difference prudently

   

• Set goals for investments

   

• Have a rainy day fund

   

• Avoid debt

   

• Avoid surety

   

• Insure risks

   

• Provide for your kith and kin

   

• Write a Will

What's the key difference between short-term, medium- and long-term goals? Short-term are anywhere between a few months to up to one year. Medium-term goals are anywhere between one to five year and long-term goals are from five to 20 years or more. What you want to achieve financially and via investing can be bucketed in these three categories. This will make it easier for you to choose how and where to invest. For example, for short-term, debt funds are the best, for medium-term, you can look at fixed deposits and for long-term, buying stocks or investing in equity mutual funds! 

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