Saturday, 9 July 2022

Yoga for your financial health

Yoga is good for your health. But what if we told you that there are a few yoga asanas that you can practice to better your financial health. That is right, you heard us right. Here are eight asanas that can be used as effective remedies for all your money ailments.

 

1. Asset Allocation-Asana

An asset allocation strategy that factors in age, goals, horizon, and risk appetite will lend the right balance to your investment plan. Meticulously following the strategy and rebalancing at regular intervals to ensure the mix is not altered will help prevent losses, book profits, and keep you on track to achieve your goals.

 

2. SIP-asana

With markets close to yearly lows, investing small sums systematically and adding lump sum if you have additional money is what you should do. Sticking to goal-oriented SIPs in will yield benefits over the long term. This systematic approach will help you remain calm during current volatile phases.

 

3. Diversification-Namaskar

A well-rounded portfolio will help in achieving all your long- and short-term financial goals. When you put your eggs in more than one basket, you spread risks and cushion the adverse performance of one asset class or a few instruments.

 

4. Shed the flabhaati

Diversification is good, but too much of something is never good. Having a big, fat portfolio of 15-20 mutual funds will not help. In all probability, several of the schemes will hold similar stocks, which means that they will not add any value. Avoiding investment overload will help you ward off distributors looking to churn your portfolio and hawk new fund offers.

 

 5. Contra-asana

Often, retail investors make the mistake of entering when markets are high and exiting in panic when they start tanking. Do not stop SIPs when markets dip or hoard equities when they head up. Investing systematically as per your plans, long-term goals and risk appetite will yield better results.

 

6. Tax-asana

While filing returns, follow the rules meticulously and complete the process ahead of the deadline to avoid errors. Seek professional help if needed. Filing income tax returns is an unavoidable activity, which is also complex in nature. Completing it well in time will reduce the hassles and scope for errors.

 

7. Budget-asana

Devise a monthly budget, prioritise needs over wants and ensure savings. Set aside 50% of your post-tax monthly income towards basic needs, 30% towards savings and wants can account for 20%. Adhering to a well-devised budget can rein in the tendency to overspend on discretionary items and keep the focus on important goals.

 

8. Relax-asana

Don't stray from your financial plan, take risky short-cuts, or bend rules. Prioritize your retirement over goals like children's higher education and marriage


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