Have you ever made a New Year resolution and failed to keep it? Don't worry, you've got company: just 8% - that's right, EIGHT percent! - of people stick to their resolutions for the entire year.
Spending less and earning more typically winds up somewhere on these lists of common resolutions, but should be higher! On that note here is a list of 4 financial resolutions we think you ought to keep and follow (we certainly try our best to!):
1.Avoid Bit-Cons!:
There will be many such stories and manias that you'll encounter in your investing lifetime. Don't fall for these cons or stories. Keep your financial goals in mind, your discipline intact and stay invested. If you want to have a little fun and participate in the Bitcoin mania, fine - there, very well may be a place for it someday - but don't talk yourself into believing you're making an "investment" of any sort. At least be emotionally prepared to lose 90% of your value before it ever rebounds. Investors tend to cling to the latest examples and have a bad habit of forgetting history. Just remember: after the dotcom bubble crashed, it took 15 years for the Nasdaq to recoup its former heights. Use that as a guiding example if you want to put money into Bitcoin at these levels.
2.Save Tax:
A no-brainer right? Why should we pay more tax when we can invest and ensure that we actually use more the money we earn! The surprising fact is that most people tend to ignore the tax planning aspect (TDS hai na) or leave it till the last minute (29th March usually) to invest in tax saving instruments.
As an investor you can invest in Tax Savings funds or ELSS (Equity Linked Savings Scheme) and avail of a deduction of Rs. 1,50,000 under Section 80C. While this doesn't reduce the tax you pay, it does reduce the amount on which your tax is finally calculated. Don't worry, we fully agree that paying tax is a patriotic duty, but there's nothing at all wrong with investing in securities, promoted by the Government itself, which will help us save tax.
3.Plan for Short Term Exigencies :
Be it repairing severe damage to your car, handling an emergency medical expense, or a variety of unforeseen circumstances, most of those who live 'cut-to-cut' with their salaries and expenses are often stumped as to what they should do when the unforeseen expense hits. Often we have friends and family members in dire need of money and when they ask us for help, we have to stretch ourselves financially to do so (again something which wasn't really planned). God forbid those expenses are medical - with the medical line becoming more a business than a profession, any good hospital in the country will charge a massive amount for tests and treatments.
4.Plan for the Long Term:
This tends to be one of the easiest resolutions to break. Many of us invariably tend to procrastinate what doesn't affect us immediately. "Plan for retirement, pah, that's 30 years away!" or "Sonu is just 10, why should I plan for foreign education or marriage from now?" That there are many immediate expenses that need to be resolved first, and long term goals can therefore take care of themselves later, seems to be the mentality that most of us tend to harbour.
That's what we need to resolve to change. Retirement planning ideally should start from one's first salary cheque and continue to the last. A fund for the child's education or marriage needs to be created in year 1. That way, when we do reach that goal there are zero worries on the financial front. We can therefore look towards the future with confidence, as we have the foresight and have planned for that huge expense. Remember: you're thinking 10+ years down the line. It only takes minimal effort now to pay massive dividends in that long a period.
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For investments, contact:
Samarth Holdings
Address: Office 201, 2nd Floor,
Trade Net Building,
Viman Nagar
Pune.
Mobile: +91-9561733111, 8805111007
Email: samarthholdings@aol.com
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