Four money tasks you should do in the new financial year 2022-23

With the beginning of the new financial year, 2022-23, there are certain financial tasks that we must do in order to keep ourselves economically independent.

This also keeps us stress-free for the rest of the year. So, here are four such unavoidable tasks you should do.

Review your savings rate

We usually do not pay attention to the saving rate which is one of the most critical drivers of wealth creation.

The thumb rule is to have a minimum savings rate equivalent to your age.

For instance, if you are 38 years old, you should save a minimum of 38 percent of your income. The higher, the better.

Review your financial goals

One should review his/her goals at least quarterly. If there are any changes in the priority, the goals need to be reprioritized accordingly.

For instance, buying a house may become a higher priority than buying a car.

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Review your asset allocation

As we just entered the new financial year, you should review your asset allocation and prioritize it based on your risk profile.

In recent years, allocation to equity has seen a surge. However, it's essential to rebalance the portfolio and have a mix of equity, debt, gold, and real estate as per your risk profile.

Review your emergency fund

Financial experts advise that an emergency fund size should cover at least six months of your expense and ideally, it should be of 12 months.

So, you should review your emergency fund in the new financial year (2022-23).

When you review it, you may realize that your expenses may have gone up or down due to purchasing a new car or due to the closure of a loan.

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