To complete the resolutions that I made in 2008, 2009, 2010, 2011, …2023…….because there is no
point in making new resolutions if you have not lived up to the previous resolutions, right?
Still for those who have not made any resolutions…..here…
Here is a list of very useful financial resolutions to make:
I will write down my financial goals. I will make sure that they are smart, specific, measurable, actionable, reachable and time bound. Like “I will buy a car costing R39L in 2028 (model x, color y…) with my own money which will come from redeeming the investments in Xyz fund)
I will convert a big portion of my savings into investments.
I will live a simple, frugal life by choice – but choose my dream career. You need guts to do it. If you do not, get vicarious pleasure by watching Rs 3 idiots’ again and again. When you choose your dream career you enjoy what you are doing –by choice.
I will start saving/investing for my retirement. Saving for retirement is an old game. Now you need to invest for old age. Remember you will need equity if your retirement from job age is 55 and retirement from the world is 95. 5. I will have regular conversations about money, saving and investing with my spouse, kids and parents – all people for whom I feel financially responsible.
I will not deal in direct equity with my current level of knowledge of equities. I will keep learning and buy one or 2 shares a year after doing proper research. If I reach a stage when my direct equity portfolio is doing better than the Index, I may start investing in direct equity in a big way.
I will increase my financial knowledge – inter-alia by visiting good websites, reading books, etc.
I will maintain my income and expenditure details diligently and keep reviewing them.
I will maintain proper records of my assets and liabilities, understand the risk of each asset class, and do proper asset allocation.
I will protect all those people dependent on me. Will review my term insurance, medical insurance and retirement and make sure it is up to date and adequate, and the nominees are current.
Most important: Properly stick to all the resolutions!