The Beginning of a new year is also the time for new resolutions. With another 52 brand new week comes the excitement of overhauling your financial life. Another great opportunity to think and plan your finances. 12 financial resolutions for the new year 2017. A chance to make you move closer to your financial goals.
As the year closes, you may feel the need to close certain financial issues which didn't work out. You may like to review those financial goals which now look realistic! Hence, you may like to find out the particular agenda to work. To make them as your new year resolutions.
You may be looking for specific points which can help you make your new year resolutions better aligned with your overall goals. Would you like to know a step by step guide for you to make your personalized new year resolutions? If you are looking for such relevant points for 2017 to be put on your personal agenda, this blog is for you.
- SMARTER GOALS: Move from SMART to SMARTER goals. Goals, which are very personal, may change over your lifetime.Let me give you a very brief idea about SMARTER GOAL setting process.
- Below is an old school of thought: S: specific M: measurable A: Achievable R: Realistic T: Time Bound
- Here, is a new school of thought:
- S: Specific, Simple
- M: Measurable, Meaningful, Motivating, Maintainable
- A: Achievable, all areas of life and As of Now
- R: Realistic, Right, Responsible
- T: Time Bound, Towards
- E: Ecology (in NLP, we call it- related to consequences of actions)
- R: Resources (in NLP, it refers to Money, Time, people, confidence, experience, determination, ability)
- So create SMARTER GOALS, not smart goals Redefine your goals. Reevaluate. Adjust the amounts. Re-align.
- Think about the relevance and priority of each of your financial goals.
- If they are still important and critical to be pursued in 2017, continue.
- Be Clear in numbers as to what amount that you wish to have as a goal in 2017.
- Contingency Fund: As inflation increases your monthly liabilities, check and balance your emergency fund. To keep provision for accidents, dental needs, ill-health, or just some cash crunch. Take course corrections now. As per your industry or job profile or your profession, keep 3 to 6 months monthly expenses in your savings and liquid funds.
- LOANS: Review your outstanding liabilities, Reassess and check. Check out if there are options to pre-close some of your loans. Do balance transfers if there is a remarkable amount on your credit card. Make plans to reduce your overall liabilities and use 2017 to reduce all your loans to the minimum.
- SIP: Systematic-Investment-Plan: Make plans to invest a fixed amount per month. Starting January 2017, initiate the process of a new SIP of Rs. 5,000/- towards one goal or whatever amount is feasible (it can be as low as Rs. 500/- per month). Creating this kind of resolution may bring in a discipline to save and an excitement of having done something new on new year's eve. Consult your financial planner to align this new SIP with one of your goals and get the auto debit done through your savings account.
- Tracking Sheet: Given to my clients who start financial planning, this tracking sheet has been found to be an excellent way to track income and expenses. Starting with January 2017 till December 2017, start writing out your monthly expenses every month. Include your annual spending in the month where it has to be paid. This will give you confidence as well as satisfaction to see a tracking of your expenses, thus giving you ideas, perhaps to control some unnecessary expenses, thus saving you some money also.(the-advantage-expenditures-tracking-report-for-2017) and thethe-advantage-investments-tracking-report-for-2017, or just email me).
- Taxes: The month of January leaves you with three months to save and invest any of still possible Income Tax Saving like investments under 80 C, 80 D, etc. Then, align that saving for a goal with your financial planner and don't just save last minute to show on your income tax returns.
- Healthy Habits: Create your wish list for starting healthy habits that would help you in your financial goals this year. Taking cognizance of the fact that you want to have a good saving habit, is itself a starting point. Starting one such act and following it religiously for the next 21 days makes it a habit. Start using plastic money and increase your ease of operating digital transactions.
- Bad Habits: Recognizing your bad habit which you wish to eliminate in 2017, is itself a starting point! Online shopping for things which you don't need and instead investing that amount (not spent on shopping online) online, is also a motivator. I have given this app to all my clients which let them save instantly. Just with one simple click on this app, helped them invest say Rs. 500/- in their liquid mutual fund, also gave them the same kind of excitement that they got in online shopping. Alongside, when they got my weekly investment portfolio summary, they could see that Rs. 500/- invested and already linked to their goal, brought joy and happiness, which was more than the satisfaction of having spent online on an item which they thus avoided.
- Save More: Increase your yearly saving by 10%. This % could be just the same % that you expect to get as annual raise. In India, giving this 10% raise to your annual saving also beats the inflation of let's say 6 %.
- Update Your Will: WILL is the most important document that your spouse or your children would need if anything happens to you. Update whatever you have bought this year in terms of real estate, investments, insurance and also any new loan. These need to be updated to link them appropriately. Consult your financial planner for all such necessary financial updates in your WILL.
- Charity: While you may have got all your 2016 wishes, keep some provisions for giving out a portion of your earnings to the needy. Not just donations, but helping out someone who may not be so fortunate as you are. It can be in money terms or even with your precious time to help someone come out of difficult times.
- Teach your Kids about Financial Responsibility: Should anything happen to you, then are your parents, or your children aware of your health insurance policies? Can they decide what's to be done? Are they aware of your financials and how would they start your hospitalization admission process? Have you made them aware of such eventualities wherein they would have to take decisions? You may have a great bank balance account, but what use, if it can't be put to the right use? Make your children aware of all such eventualities and what they have to in the case of such emergencies?
Action Plan: Enough of thoughts and grand plans above! I guess, it's now time to start making an action plan. Create an action plan for each month. the-new-year-resolutions-by-taresh Share with me. Ask me, how to make it better.
12 agenda point for the next 12 months of 2017. Are they good enough to keep you excited about your money and financial well-being for the next 12 months? At least, start one point per month.
All the best for implementing these 12 financial resolutions for the new year 2017
Happy New Year-2017
What are your new year resolutions for 2017?
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