With the recent demonetisation followed by the cash crunch mishap, Indians are still trying hard to get a grip over the shifting face of national economy.

The previous year witnessed a lot of economic changes that took the world by the storm – beginning with Brexit, the 2016 Presidential elections, the changing face of the IT industry in India, the Union Budget of 2017 and of course, the aforementioned Demonetisation.

A new political and market climate paves way for a wave of economic change.

Such economic changes, as mentioned before, bring to our attention, the need to safeguard our own finances.

Most of us had cash lying around or worse, no cash in hand, when the demonetisation movement took place over night.

These incidents teach us to be vigilant about our finances.

The best way to be vigilant, is to know how to protect our finances from depleting rapidly.

Let’s look at 5 strategies that can weather any storms that might come your way this financial year :-

1. Don’t keep too much cash in hand

If there is anything the demonetisation movement taught us, it is to not hold on to too much cash.


Over the decade, economists have stated that cash has not been the best performing asset.

Not only is cash affected when markets suddenly crash, there are safer assets to invest in this year.

2. A Diversified Portfolio can Protect Your Finances Against Market Volatility

We are fresh out of a demonetisation movement.

Market volatility can happen anytime – and all the investors have their eyes on any potential cause for a market swing.

As it is impossible to predict market volatility, the intelligent thing to do would be to protect your investments against this uncertainty.

We may or may not be due for a market correction, however, make sure you are prepared to deal with the best and worst of market situations.

Have a diversified portfolio.

Never invest your money in just one stock or one asset.

Never plan by following what others around you are up to.

Make sure you protect your portfolio against market bubbles and sudden volatility.

Invest in sectors across the market – never go for the hot favourites when it comes to stocks.

3. Plan for Rising Interest Rates

Though the interest rates are currently on the lower side, always plan for a rising interest rate.

You never know when the government might increase the rates to prevent inflation.

When faced with an economic difficulty, the government might suddenly bring down the interest rates to encourage better economic activity as well.

Make sure, your investment strategy covers both situations.

While a hike could play in your favour, a sudden fall does not necessarily have to dampen your figures.

Understand what each change could mean for your finances – plan accordingly.

4. Credit Limits and Cards


Make sure you pay down your credit card balance to avoid an added pressure on your finances.

5a. Housing Loans

It is every man’s dream – and nightmare!

Housing loans weigh down on your finances more than you’d ever know.

Keep in mind that long-term loans not only give you time but also eat their way into your savings as each year the interest rates see a sharp spike.

Take a loan that you know you can surely afford. No matter how long the term associated with the loan is (20 / 30 years!), calculate the interest rates when you plan your finances ahead.

5b. Optimize your Taxes


This not only gives you time to plan your finances for the upcoming financial year, but also helps you make last minute changes if required.

Take into account the tuition or educational expenses, vehicular loans, housing loans, house tax, water tax, etc into account while you plan ahead for the upcoming financial year.


We are entering a new political as well as economic era where constant change has now become inevitable.

The only solution to this uncertainty is to be ever-ready.

Be in complete charge of your finances.

Remember that you have the power – the upper hand to make any altercations necessary.

With a strategic approach, you can protect your finances no matter what economic spanner gets thrown your way in the coming months.

So gear up and pen down an investment plan that takes charge of your future.

Read more at : www.stockmarketsignals.com/how-to-invest/