This new year lets not make resolutions, lets Create habits…rather than taking it up as a one time task inculcate it in our Lifestyle. List of few resolutions /changes to make Financial Life better:
Now or Never:
Take a stand…Either you do it now or Never….Be it aligning your Finances, making a household budget, planning for your child’s future , buying an insurance policy and starting with Systematic investment plan.
“The best time to do it was yesterday and the next best time is today.”
Delaying financial decisions have a delayed cost attached to it.
Learn to Move on:
Do not cling to any old bad financial decision taken.
“A rotten vegetable will never become fresh by keeping in refrigerator.” The best thing is to leave it behind, learn the lesson so as the same is not repeated in future and move on.
Make it a habit to do your own due diligence before entering into any financial contract…however there are Regulators all over who are regulating the industry but still the onus lies on us to buy Right so that we can Sit Tight.
Choose wisely Needs OR wants:
Personal Disposable incomes have increased in the last decade. Before any impulse purchase, try and do a needs or wants analysis, make sure to ask few questions like:
Do I require this product immediately?
Is good discount only parameter of buying this product?
Do I have enough space to keep it? (may sound funny, but Most of the times goods are bought without realising that there is no space in our house, eventually it is being gifted or not used)
Will I be able to repay my credit card amount if I get it swiped for this product or is it beyond my affordability?
Such questions will help you save from end up buying unnecessary..recent one was GOSF (Great Online Shopping Festival) which resulted in unnecessary indulgence.
File/Document all Financial papers:
This task has been on our mind for ages; take up as a resolution and Just Do it. Just consider the time and pain it takes to locate documents, once and for all it should be clearly punched in files with names written on them. An excel sheet with all the investment details is a good idea , however the same should also be maintained in physical form.
Also, Things will be better for our loved ones if we are not there and they have to claim our investments , insurance etc.
Write a will:
I was in a meeting and I suggested to a client who is 45 years of age to write a will and also told him how I have framed my own will…he looked shocked and said what is the hurry….My Reply “No, its never too early to write a will.”
Yes, Future is highly uncertain and dying intestate will mean distribution of your assets without your wish ; there is equal possibility of disputes among our own children over assets. It is better to write a will today to avoid such situations.
Also, lot of people think it is mandatory to get a Will registered to be valid and this thing only delays decision of making a will..However an unregistered hand written will is also valid, it can have 2 witnesses.
Wishing everyone a happy and prosperous new year.
The article was also published in Times of India http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=Fin-Resolutions-That-Can-Change-Your-Life-30122014007005
Gurleen Kaur is a Financial Consultant and devotes her time to her company www.hareepatti.com. She has done her Bachelors in Finance and Investment Analysis(BFIA) from College of Business Studies(CBS, Delhi) and MBA from IMT, Ghaziabad. Currently she is also pursuing her studies in order to become a Certified Financial Planner.
She can be Contacted at gurleen@hareepatti.greatestdesignever.com