Filing for AY 2024-25 is coming soon
Filing for AY 2024-25 is coming soon
Keep calm and sign up for early access to our super filing platform

4 Scenarios That Call For a Revision in Your Financial Plan

Updated on: Jan 13th, 2022

|

4 min read

social iconssocial iconssocial iconssocial icons

Some developments in the markets, changes in your financial requirements and investment profile call for reviewing your financial plan. You may have to make changes in your financial plan for your benefit in such instances. We have covered the following in this article:

You got a pay hike

Most employers provide their employees with a hike in their salaries every year. The appraisal process is conducted mostly in March in India, and the employees will be getting their revised salary from the following month, which is April, the first month of the new financial year. It is crucial to increase your investment whenever you get a pay raise. 

You have to redraw your finances to accommodate the increased budget towards investments after your pay revision. Remember, the more you invest, the faster you will achieve your financial goals. When you have got the opportunity to invest more, it would be wise to grab it. 

You have availed of a loan

Challenging situations call for desperate moves. If you availed of a loan, then the primary focus should shift towards repaying it at the earliest. The longer you take to repay, the more you pay as interest towards the loan. Therefore, you may have to curtail your budget towards investments as you will need more money to cover the equated monthly instalments (EMIs) and living expenses. 

Major life event

A major life event such as getting married or having children will call for a severe revision of your financial plan. In such cases, the responsibility on your shoulders increases. You may have to avail of a term life insurance policy, include the new family member under the existing health insurance policy or even purchase a new one. Naturally, you will have to pay higher premiums. 

Financial crisis

A financial crisis resulting from adverse developments such as job loss or hospitalisation of self or a family member will leave you with financial difficulties. In such cases, you likely have to pause or stop your investments from raising funds to cover the given contingency. It is for this reason that financial planners insist individuals on building an emergency fund. 

Conclusion

Having an impeccable financial plan is essential in the modern world. However, you may not follow the plan at times due to various reasons, some of which are beyond your control. You have to be smart in handling your finances whenever there is a change in your requirements. 

inline CTA
Invest in Direct Mutual Funds
Save taxes upto Rs 46,800, 0% commission
CONTENTS

Clear offers taxation & financial solutions to individuals, businesses, organizations & chartered accountants in India. Clear serves 1.5+ Million happy customers, 20000+ CAs & tax experts & 10000+ businesses across India.

Efiling Income Tax Returns(ITR) is made easy with Clear platform. Just upload your form 16, claim your deductions and get your acknowledgment number online. You can efile income tax return on your income from salary, house property, capital gains, business & profession and income from other sources. Further you can also file TDS returns, generate Form-16, use our Tax Calculator software, claim HRA, check refund status and generate rent receipts for Income Tax Filing.

CAs, experts and businesses can get GST ready with Clear GST software & certification course. Our GST Software helps CAs, tax experts & business to manage returns & invoices in an easy manner. Our Goods & Services Tax course includes tutorial videos, guides and expert assistance to help you in mastering Goods and Services Tax. Clear can also help you in getting your business registered for Goods & Services Tax Law.

Save taxes with Clear by investing in tax saving mutual funds (ELSS) online. Our experts suggest the best funds and you can get high returns by investing directly or through SIP. Download Black by ClearTax App to file returns from your mobile phone.

Cleartax is a product by Defmacro Software Pvt. Ltd.

Company PolicyTerms of use

ISO

ISO 27001

Data Center

SSL

SSL Certified Site

128-bit encryption