Basic Financial Planning Checklist for your Birthday | AU Small Finance Bank
AU Bank
Earn up to 7% interest p.a. on Savings Account

Financial Must-Dos for Your Birthday

    Birthdays are that one special day every year where you celebrate your life! Whether it’s filled with celebration or just a little ‘me-time’, a birthday is all about you!

    As grand as the day is, it’s also a reminder that you have become a year older and a year wiser! It is apt to use this day to think of the future and start getting your finances in order.

    We’ve made a checklist of financial must-dos for your birthday:

    1. Make a budget for the important things in life

    If you don’t already have a budget to account for the important things in life – assets like a house or a car, we recommend you create one without any more delay. A budget plays a crucial role in managing your finances well. Luckily, in this day and age, we have easy access to bank statements which serve as a great starting point for any budget. Further, we also have plenty of budgeting apps available that help take the boring out of budgeting!

    Updating your budget should be an annual habit. With every passing year, you should be dedicating more money to things that matter and less on momentary things. When you’re younger, you have lesser responsibilities, and it’s the best time to enjoy life. But as we grow up, we have more things to take care of and our retirement to think about.

    Ensure your budget accommodates all the have-to-be-paid bills, make room for savings and investment, then spend the rest. Go with the philosophy - ‘Save first, spend later.’

    2. Increase contribution to your retirement

    As fun as a birthday is, it, unfortunately, means we’re one step closer to retirement age! The more you put in now, the more better off you will be in your retirement.

    Make it a habit to increase the contribution to your retirement fund by at least 10% every year. The best way to do this is to set standing instructions to auto-debit your bank account and credit it into your retirement fund.

    If you don’t already have one, you can open a National Pension Scheme (NPS) fund. You could also choose from retirement plans offered by insurance companies.

    3. Reconsider your investment choices

    Time passes by so quickly! We may think five years is too long to wait for an investment to mature, but before you know it, five years pass by. So, wait no more. This birthday make sure you invest any spare funds in a fixed deposit. If you want to get tax benefits, choose a five-year term. If you want to maximize your earnings, look for tenure with the highest interest rate. For example, with AU Bank, you can earn an interest rate of 7.01% p.a. when you choose a tenure of 12 months. But if you opt for 15 months, then you get 8.10% p.a.!

    If you don’t have spare funds, a good choice for you is a recurring deposit. Save small amounts every month in order to build up your funds. You can start investing in an RD with as little as Rs.100 every month with AU Bank. All you have to do is choose a tenure between 3 months minimum and 10 years maximum and make the payment. Interest rates usually vary between 6% to 8% p.a.

    The good thing about RDs is that as you invest every month, your principal amount starts to grow and you earn interest on the accumulated amount. At the end of the tenure, you’ll have a big enough fund to buy big-ticket items, go on holiday or simply reinvest it in other avenues!

    Check your investment portfolio and see how you can grow your investments. Nowadays, we have easy access to investments in the form of SIPs (systematic investment plans), mutual funds, stocks, shares, and more.

    4. Buy health insurance

    Health issues are usually unforeseen, and medical emergencies can strike at any time. Tests, treatment, hospitalization, and recovery can result in a huge bill. With medical costs skyrocketing, we need to make sure we’re insured! There are so many health insurance plans that offer good benefits. Always compare, check the reviews and ratings of the provider, and read the terms and conditions before you opt for a policy.

    To sum up, the years pass by quickly, and it’s up to us to stay on top of our game! Every birthday should serve as a reminder to check up on your finances and make sure you’re not just on track, but also growing towards a more financially secure life

Apply Now