As the New Year sets in, most of us engage in the tradition of setting New Year Resolutions. The most popular resolutions tend to be related to getting healthier, getting financially sound, learning a new skill or hobby. It is also right time to forget and to make good the things that have gone wrong in the past year. Getting financially sound as a resolution sounds ideal for those who take their wealth and financial well-being seriously. This article primarily concentrates on bringing in prosperity this year, looking at New Year resolutions from the financial angle. Here are a few Financial Resolutions put together for you to ensure achieving financial success:
- I Will Start Investing As Per My Financial Plan: Begin your year by getting a proper financial plan prepared by an efficient Financial Planner. This is the most basic thing that you need to do in order to assess your financial situation today. It also means identifying financial goals of your life. If you were a husband in Jan 18 and are now also a father in Jan 2019, you need to cater to added funds needed by the family – in terms of education, health, holidays, marriage etc., in keeping with having to achieve newer targets as life unfolds. The advantage of having a financial plan is that it shows you possible ways of reaching your goals. This will help you become more conscious, alert and responsible for saving towards your goals rather than worrying at the last moment.
- I Will Take Comprehensive And Adequate Insurance: Insurance is never for investment. The earlier you realise this fact, the lesser will you end up buying bogus policies sold by bankers and insurance agents. Insurance is for protection – it is a method of transferring your risk to the insurance company in case of unfortunate events. Comprehensive means that all major risks you are exposed to i.e. Death, Disease, Disability and Disaster are covered. We call it “Sampurna Suraksha” when we prepare a financial plan for our clients.
- I Will Create Assets And Reduce Debt: This is a resolution where you commit to improve your behaviour and attitude towards money and finances. Carrying debt is one of the worst burdens of life. Adhere strictly to the following:
- Maintain a safe emergency fund of at least 6 months of your expenses in a liquid fund.
- Never rollover credit card dues, and pay up Personal Loans ASAP.
- Control your urge to spend, and save and invest money without delay.
- Get all your financial records /documents/statements in place.
- I Will Embrace Technology For Managing My Finances: It is high time that as an investor you too adopt and embrace technology in areas related to investments. No longer should you be filling up application forms and travelling to submit forms. These days virtually every possible investment is done online through a Demat account. If you are yet to open a demat account please ask your advisor to do so.
- I Will Convert All My Physical Shares In To Demat: SEBI has extended the deadline 1st April 2019 for physical transfer of shares. In our Parsi community we have many senior citizens who still hold physical share certificates with joint names of people who have expired. This might be your last chance to get things right!
New Year Resolutions are easy to make and very difficult to keep. Over time, we realise that the discipline we learn and the character we build from setting and achieving any goal or resolution can be more valuable than the achievement of our goals or desires. Hence, it is important that we begin the New Year in the right earnest and with the right things in mind. Here’s wishing our readers a Very Happy and Prosperous New Year!