Five financial resolutions for NRIs in 2021.

 The New Year is about new beginnings. While most of us are planning the things we want to achieve in the year 2021, we also need to think about our finances and make crucial financial resolutions to ensure we have better years to come. 


This blog will walk you through some crucial financial resolutions that you need to adapt to your new year’s resolutions.


Financial resolutions for NRIs that will make your life better.


  1. Invest in health insurance


Health insurance is an essential part of NRI financial planning. Getting adequate health insurance for you and your family is probably the most important financial decision that you will make. Health insurance costs very little, and it is a safety net that takes care of you and your family in times of need. 


Be careful about the plans you choose; consider your family’s health requirements. 


  1. Get a contingency fund.


After health insurance comes to a contingency fund, but what is a contingency fund? A contingency fund is your money in cash or highly liquid forms, kept aside for any unforeseen financial situations. This should make it to the list of your new year’s resolutions. 


A contingency fund looks after you in a financial crisis. Ideally, a contingency fund should be at least two times your monthly income. You can go as high as you want.




  1. Pay off debt


Loans have become a part of almost every man’s life. What we do not understand is that loans can disrupt your finances. As an NRI, you also have to think about financial planning in India for your future or for if you plan to retire in India. 


While loans provide you access to quick funds, repaying them can take a toll. Some loans, like car loans, even cost heavy interest. It is best to pay them off as soon as possible to avoid heavy interests.


  1. Budgeting


Budgeting should be one of the essential things that you do at the beginning of each month. Budgeting helps you understand the amount of money you have and enables you to analyze your expenses and plan your financial investments. 


E.g., You make ₹50,000 a month, your cost of living (rent, bills, grocery, commute, etc.) is ₹15,000 a month, your wants (shopping, eating out, movies, vacations) cost you ₹10,000 a month, you are left with ₹25,000 that you can invest or set aside to use during times are hard. 


The right way to budgeting is by looking at your expenses like rent, groceries, etc., and set a limit on how much you can spend on a particular thing. You also need to ensure that you save at least 20% of your income. You also need to set money aside for your leisure spendings like vacations. 


  1. Periodically revive your investment portfolio.


The market fluctuates all the time! Let’s be honest, 2020 hasn’t been the best for investments. Your dynamic needs and the equally dynamic market make it necessary for periodical reviewing of your investment portfolio. Regularly churn your portfolio to minimize risks and maximize profit. 


The year 2021 is here, and you have an entire year to stick to your financial resolutions make sound financial decisions. Despite the difficult times, face any situation as an opportunity and create solutions. SBM bank aims to assist you in realizing your financial resolutions.

CTA: Get in touch with SBM’s banking professional today!

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