Financial Spring Cleaning! Why do I Need it?

Just as much as you would pay attention to your drawers and closets for spring cleaning, it is important that you look into where your finances stand.

Organize Yourself for a Better View

As tax season comes close, you can’t just spend the last month scrambling and leave your documents in disarray. You should make a habit of using a show box where you toss in all your receipts that you have for the year, and reserve a drawer for the documents that you will need when you prepare your taxes. Organizing everything and making sure that you have all the necessary items that you will require in April is a great way to put yourself at ease, and also be on time for filing taxes.

Update the Budget

Think about how the budget plan that you followed for the last year worked for you. This time around you need to update it; a lot can happen in a year. If you got promoted and got a raise, you need an entirely new plan on how to spend and save. If you took a new loan, you might have to use your savings, and stick to a new savings regimen too.

Check your Credit Score

Credit scores can scare anyone. It is important that you know where you stand. You might find that you are doing a great job and for that you might feel confident applying for the new loan. Or, you might find that you are going downhill with your credit score, and that should be a signal that you curb credit card spending pronto.

Round off Everything

When you review your finances, make sure that you make things easier for yourself by rounding off things and removing decimals that make you mad. If this is the time of the year that you have to transfer money to your savings account, make sure you do it in increments of $500. If your credit card bill ends in decimals, make sure that you reserve money for the next whole number. This way you won’t be confused of how much you should budget.

Shred Documents You Do Not Need

Having an uncluttered and clean workspace means that you organize every one of your financial documents, tax information, and receipts. This is the time that you make two piles, the documents that you need, and the outdated ones that are only taking space and should remind you that you need to update for new ones. Get rid of the ones you don’t need.

Clear Off That Big Debt

In case you have been caught up, and are only now reviewing your finances, see which outstanding debts you can pay and have not already and make the payments. It is possible that you forgot that credit shared to your card for a certain vacation expense. Leaving it be is only going to ruin your credit score.…

How to maximize your returns from SIP or Systematic Investment Plans?

Fund houses in the USA will allow making investment on certain dates of the month. If you are holding multiple SIPs, it would be better not to make payment for them in a single day. You should try and stagger the payment all through the month. This way, you can enjoy liquidity in your savings as the money is not drained out completely. You also tend to negate the effect of adverse movement of market. If you have been considering SIP investment, it is important to know certain investment facts. This will maximize the returns. The component of general finance, SIP, gives tremendous opportunity to make money. Let us check out the tips.

It is true that monthly payment has to be made but you must set up yearly investment plan. In fact, there is no need to stick to the fixed amount which has to be paid every month. You must try to ensure that SIP amount increases with your income in proportion. To keep pace with inflation and your changing lifestyles, adopt step-up approach in systematic investment plan. The surplus amount can be directed to the existing funds rather than on new ones.

Your withdrawal and transfer plan must be completely systematic. It is true that one needs to have in the bank sufficient amount for monthly SIP transfers but it is not necessary to have that in lump sum. You will not enjoy high returns by having big amount in the bank. It is recommended you put lump sum money in your liquid fund and offer instructions for transferring fixed amounts. Liquid fund will fetch higher returns and thus it is advisable you ask for the transfer of fixed sum to your chosen equity scheme. When you reach financial goal, choose SWP for withdrawing your money at regular intervals.


Try and invest for the entire market cycle and do not terminate. There are many individuals who make the mistake of starting SIP for mutual funds and then terminating it as soon as the market declines.


This should be avoided at any cost since this defeats the purpose of SIP investment altogether. When you exit from the market, you forgo the opportunity of buying more mutual fund units at lower cost.


If you stay all through the market cycle, you can average out your purchase cost over the period of time.

It is crucial to link your SIP investment to the financial goals. Link your investment to any of the specific goals. To avoid investing in a haphazard manner, invest with some aim in the mind. Make a list of goals and fix some time frame for their realization.
SIP must be undertaken over a long term horizon. The systematic investment option lets you create a lot of wealth if you are patient.

The amount you invest is fixed and what changes here is just the asset value. Here you need not invest the amount in lump sum.

To invest in a disciplined manner or instill discipline in your investment, you must consider SIP.…