6 Financial Planning Tips to Act on Before the End of 2020
According to the Economic Times, the Indian economy would contract a staggering 10.9% by the end of 2020.
To make 2021 a year of recovery, you can make some smart moves in 2021.
Here are 7 financial planning tips to act on before 2020 comes to an end. By doing so, you can turn the tables to your advantage and make 2021 one of the best years of your life!
- Invest in Real Estate
Real estate prices are at an all-time low. This would be an ideal time to invest in this space because they are bound to increase in value over time.
Since the economy will likely grow at a faster rate once normalcy is restored, the real estate prices will likely shoot up more than ever.
- Start a Side Hustle
The year 2020 has opened up numerous opportunities for new businesses and gigs for individuals.
You can use this disruption to your advantage by identifying potential openings to start new businesses or provide your services as a freelancer or a solopreneur.
If you want to grow more, then getting certifications like that of ACCA is wise decision. It is not an easy endeavour, but you will certainly reap its benefits after being certified in the finance industry.
- Cut Down on Vehicle Insurance
With a decrease in automobile sales, vehicle insurance companies have seen a loss of revenue and are offering lower premiums to client to keep generating revenue.
Therefore, the wise thing to do would be to negotiate with your insurance provider for lower premiums. This will compound over time and save you a fortune.
- Buy Shares of Booming Companies
Many companies have risen from the ashes at the expense of others this year.
Entertainment, social media, telecommunications and video streaming companies have seen a significant boom. People who invested their money in these companies are reaping tremendous profits.
However, the growth rate of these companies is expected to slow down as time progresses. Hence, you should identify such companies that could potentially benefit from the present scenario and invest in them.
One way to acquire such decision-making skills is by studying and getting ACCA certified as it gives you knowledge on accounts and finance in addition to developing your strategic thinking skills and professional values.
- Clear Your Debts
If you do not have a lot of money to invest, then the smart move before entering into 2021 is clearing any debts or loans.
You should try to clear your debts this year itself to alleviate financial stress. Due to the current situation, you might even be eligible for a lower interest when you negotiate. However, that also depends on your loan agreement.
- Make a Career Shift into Finance
If you have always dreamt about working in the financial sector, then there is no time unlike this to do so.
In fact, a course like ACCA is recognised globally and can turn you into one of the many successful Analysts, Bankers, etc.
Conclusion
Economies have been tumbling all over the globe from the beginning of 2020. Such dynamism in the country’s economy calls for an immediate plan of action at both institutional as well as individual levels.