5 Things to stay away from before budget 2017!
Every year when budget is around the only talk of the town is about the expectations, opposition’s negative impressions, economist’s speculations and media noising aloud!
There is a lot of room given at this time for if’s, buts’, may be, and so on. We need to focus on our personal budget than just depending on the country’s budget reforms. During this period, these are few steps which once should avoid when it comes to one’s personal finance.
- Budget definition: We need to first understand what exactly budget means! Budget is just an yearly exercise to let us know where exactly the tax collected by us last year was spent and on the expected present years tax collection what would be the country’s next year development goals. There might be an indirect co relation to our investment, but the budget changes have got nothing to do with our personal financial goals. Altering one’s investment portfolio in the hope of what may be announced is not an advisable solution.
For example your daughter’s education is a goal for year 2030, so how can one be depended on 2017 budget for it!
Your goals are completely independent and it is related personally to you, so the budget reforms are not a matter of concern for you to plan your personal finances.
- Keep your mind open: There will be 100’s of them claiming about a particular sectors position going strong once the budget is announced. No one has ever been successful in timing the market and post budget bets being one of them. The claims are likely to have been embedded in your minds by vested interests looking for a profitable way out – obviously at your cost. Budget announcement is one of the events when markets are very volatile. Here if carry a belief that you can time the market is just a bubble, which has to burst now or later!
- Be deaf to Media Noises: You surf any news channel or turn your eyes to any print media, they are filled with different opinions on different sectors, some might be positive some might be negative. Your personal finance decisions cannot be based on these noises. It has to be your financial goals discussed with your financial planner guiding you in right direction. People who are assuming the probable outcome of this budget and people who believing these noises both are actually clueless.
- Adhere to your financial plan: It is often observed that in the budget, amidst lot of other things government also proposes investments in various sectors that are long term plans. Some of which might take several years to complete. Succeeding budgets do not deviate from the build up of such investments. Your personal financial goals and planning done ought to stay firm irrespective of the budget. Don’t wait for the tax reforms to be announced in this budget for planning your taxation either. As, any changes announced would be levied for next financial year not the current one. Panicking at the last moment and taking wrong decisions is one of the common mistakes done by people. If there are any investments to be done or planned by you, don’t wait as the right time is now!
- Do your own research: Don’t jab over the broker’s picks! Letting your personal financial goals be a prey of these short term tricks of making profits on these budget specified equity stock tips can be a biggest mistake. It is often heard that brokers do have their typical 5-10 speculated stock picks prior to the budget announcement. It is absolutely not necessary all might work in your favour. So taking such a risky decision on the cost of your personal financial goals would not be advisable.
The more the craze built up prior to and post the budget, the more should be the reason for you to be alert.