New Year Financial Resolution
However, our good intentions notwithstanding, almost half of us were concerned that the continuing uncertainty around the economy, GDP growth rate, fiscal deficit, inflation rate, demonetization, GST impact and the ongoing threat of lower interest rates could deter our good resolutions. In addition, as we all know from experience, New Year resolutions are not easy to implement. How are you doing with your New Year resolution?
While we may not be able to help you stick to your gym routine, we can help you with Financial New Year Resolution.
These money moves can improve your finances and make you richer this year. Here are a few things to keep in mind:
- Make a plan! It is very easy to stray when you haven’t set specific goals for yourself. We can show you how to get your plan in order. Make a ‘Comprehensive Financial Plan’ (60-70 Pages Written Financial Plan) for you and your family and enjoy the power of comprehensive financial plan.
Comprehensive Financial Planning involves the detailed review and analysis of all facets of your financial situation including cash flow analysis, retirement planning, risk management, investment management, tax management and estate planning. It is only through comprehensive analysis that your true financial condition can be determined and the proper plan can be recommended.
Any financial advisor or planner providing recommendations without addressing all of these aspects for you or your business will most likely result in unsuitable recommendations.
- Make a SMART move:
~ Specific : Specific goals are those which are specific in nature. For example: Abhisek requires 1,00,000 at the age of 35. This is an example of a specific goal. “I want to be rich when I retire.” is a dream, not a specific goal.
~ Measurable: Measurable goals are those which can be easily measured . knowing exactly what your goals are will help you create a plan designed to achieve them. For example, the goal of “accumulating Rs. 500,000 in an investment fund within three years” is a clear guide to planning than the goal of “putting money into an investment fund.
Establish concrete criteria for measuring progress toward the attainment of each goal you set.
~ Attainable: When you identify goals that are most important to you, you begin to figure out ways you can make them come true. Goals must be attainable.
~ Realistic: the financial goal must be realistic. In order for a goal to be achievable, it must be within the realm of reason. To accumulate Rs. 10 million by age 60, if one currently age 58, and has no saving may be achievable by winning a lottery, however; but this is unrealistic. Conversely, for a 25 year old to accumulate Rs. 10 million by age 60 through saving and investment is probably both attainable and realistic.
~ Time Bound: All goals should be time bound. A goal should be grounded within a time frame. With no time frame tied to it there’s no sense of urgency. In order to track progress towards the goal’s completion and to provide feedback, corrections should be made in the action plan
- Determine risk. The proper level of risk is different for every investor. We can help make sure you are not taking on more risk than you are willing to take. If you are concerned that the market has become too exuberant, pay particular attention to risk.
- Consolidate. Are your investment accounts scattered? Combining old or ineffective accounts can maximize your return and make tracking your investments much easier.
- Know what it is costing you. Beware of hidden fees and costs that can impact your investments. We make sure you are aware of all costs and fees to ensure you know exactly where and how your investment dollars are being spent.
Every good New Year resolution needs a support system. Long term financial success does not happen by accident nor will it happen on its own. It requires customized financial planning and frequent review that only comes from the services of a competent and unconflicted advisory.
A best friend to keep you honest at the gym. A house mate to give you the eye when you head to the fridge. And a ‘Certified Financial Planner’ to guide you to the most informed investment decisions and prepare a ‘Comprehensive Financial Plan’ for you and your family.
Contact us so today so we can help you put your New Year’s resolutions back on track.
[blockquote style=”1″]“Tomorrow, is the first blank page of a 365 page book. Write a good one.” ~ Brad Paisley[/blockquote]
I am a CERTIFIED FINANCIAL PLANNERCM. For the moment, I have shared my experience growing up with you because it had a tremendous impact on how I do what I do.
If you have a question about your own financial situation please connect with me. I’d be delighted to try to be of service.
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