New Year is not about changing dates but direction. It’s not about changing the calendar but commitment. It’s not about changing actions but attitude.
New Year Resolutions are great way to make positive changes to your financial life. Though resolutions can be hard to keep but giving yourself easily attainable goals is a great path to success. Resolve to put your finances in order by picking simple money moves.
- Buy an Insurance before Investment:
Life is all about uncertainty. Think of the moment when you are not around to take care of your family. Buy a term insurance to ensure that your family stays just as happy as they are even when you’re not there. Have a back-up plan before you plan for your future.
- Stop wasting money just to save taxes
Tax saving is undoubtedly a perk for everyone which no one wants to miss out. Buy products that suits best to your tax planning and financial planning needs. Don’t buy something which you don’t need. Avoid last minute rush to save taxes and think before you buy
- Start planning for my retirement:
With rapid consumerism, life style inflation has already made big inroads in the lives of young India. Income levels have gone up but also average age. With the kind of work pressure we have now-a-days coupled with frequent changes in technology, we will be retiring sooner than we think and force to live longer than we probably want. Who will take care of our golden years? Plan for the golden years ahead and choose the life you want to live
- Time is your best friend
We often chase “returns” of a product to make more money and tend to switch products. But that’s the wrong way of investing. Look at people around you and you will find all those who have sustainable wealth are those who have a given lot of time to their investments. Past performance is no guarantee to future success. Hence give time to your investments and returns will follow you automatically.
- Keep investments simple to succeed
Investing doesn’t needs to be nor should it be complicated. The simpler you keep your investments the more likely it grows without any surprises. So buy those things which you will happy to hold not only for 10 days or 10 months but for 10 years. As Warren Buffet also said “There are no bonus points for complicated investments”
- Save for the rainy day
In life, unexpected is always expected. Financial emergencies can come in the form of a job loss; medical expenses or something you haven’t dreamt of. This is where you need an emergency fund. The best way to get started is liquid funds. Make it automatic via SIP in liquid funds. Maintain a cash reserve large enough to cover 6-8 months worth of household expenses.
At the end we would like to say that “it is our choice we make and not chance we get which makes huge difference in our lives.”
Let’s make better choices in life rather than waiting for chances which will make difference.