Although making resolutions to improve your financial situation is a good thing to do at any time of year, it is better if you do it at the beginning of a new financial year. However, regardless of when you begin, the basics remain the same. Here are the top ten keys to getting ahead financially.

1. Get paid what you're worth and spend less than you earn

It sounds simple, but many people struggle with this rule of thumb. Make sure you know what your job is worth, by evaluating your skills, productivity, job tasks, contribution to the company, and the going rate, both inside and outside the company, for what you do. Being underpaid even a thousand rupees a year can have a significant cumulative effect over the course of your working life.

On the other hand, no matter how much or how little you're paid, you'll never get ahead if you spend more than you earn. It's easier to spend less than to earn more and  thrifty efforts in a number of areas can result in big savings.

2. Stick to a budget

Staying within your budget means forced savings. How can you set spending and saving goals if you don't know where your money is going?  An individual with a budget in place has more control over finances; he is in a better position to handle his cash flow to pay immediate dues and also make provisions for other goals. From your income, if you first save money, then spend on non discretionary necessities and finally indulge in discretionary expenses. You will have no trouble meeting your financial needs even with small sums. This practice, if developed early, can make you wealthy.

3. Pay off credit card debt

Credit card debt is the number one obstacle to getting ahead financially. You can save some additional cash every month just by paying your bills, particularly credit card dues, on time. Reducing credit card debt will add to your monthly expenses, but will eventually give you more money to work with each month.

4. Contribute to a retirement plan

When it comes to retirement planning, it is never too early to start; the earlier you start and remain invested, your savings will have more time and potential to grow. Any delay in retirement planning can have a major impact on your retirement corpus. One of the best ways to grow your retirement savings is to make a plan for regular contributions towards a retirement plan. For instance, retirement specific life insurance plans let you plan in a Safe, Secure and Self Completing manner. They also bring in the much required discipline.

5. Idle savings is the devils workshop

Do not let your income remain idle in savings accounts. As a matter of fact, money stacked away in savings bank account only depletes over a period of time since interest amounts provided by banks never seem to match up with inflation rates. Additionally, interest on savings bank amounts are also taxable.

6. Reduce lag time

There may be times when you are between investment cycles. Between maturity of one instrument and re-investment into another try to reduce if not eliminate time gap. Do your own research on investment instruments. Do not blindly rely on intermediaries.

7. Plan for emergencies / Set up a contingency fund

A contingency fund is a pool of money usually invested in liquid investments from where money can be quickly converted into cash. Keeping some money in reserve for financial emergencies is a sound practice. The general rule for emergency savings is to have enough funds to repay today's bills plus living expenses for 3 to 6 months.

8. Review your insurance coverage

Buying a term policy makes immense sense to protect your dependents and your income in the case of untimely death or disability. However, purchasing life insurance is not just a 'fill it, shut it, forget it' lesson. It requires a periodic review, preferably once a year like most other long term financial instruments.

9. Update your will

If you have dependents, you need to register a will no matter how little or how much you own.  It is also important to update the will since it ensures that your possessions will be properly divided among your loved ones.

10. Keep good records

If you don't keep good records, you're probably not claiming all permissible income tax deductions and credits. Set up a system now and use it through the year. It's much easier than scrambling to find everything when it is time to pay taxes and missing items that may have saved you money.

(Contributed by V Vishwanand, senior director and chief operating officer, Max Life insurance)