Ten days of 2016 have already passed, and it’s time to review the progress that one has made in following his/her financial resolutions. For many, these ten days must have been enough to dump the resolutions and go back to what they were doing in 2015.
For those who find it difficult to fulfill their resolutions particularly related to finances, here are some suggestions they can use to remain on track.
Everything progresses with time, and so are the financial requirements. Had things remained the same then there would not be any cost inflation or pressure to save more. A new year reminds that an individual should take steps to remain financially sound and does not fall behind due to carelessness.
Keep moderate expectations:
Losing 100 Kgs in a year or becoming a millionaire in a single year are unrealistic goals. Eyeing such goals cannot be just worthless but discouraging. Hence, it's always recommended to keep moderate expectations. For instance, stepping up the current SIP amount by Rs. 1,000 or Rs 2,000 is a realistic goal.
Implementing resolutions into actions should follow patience. One cannot get fanatic about seeing results within days or instant gratification. A disciplined and controlled approach can only help achieve results.
Saving for a car cannot come before getting an adequate life insurance. One has to draw a line between needs and desires. To simplify the task, one must rank each of their goals in order of their priority while placing basic goals on the top.
Diversification is the key:
Again financial resolutions, discipline or patience will work only if an investor has done justice to his/her portfolio. For example, by solely investing in debt-oriented funds, an investor cannot achieve a higher performance over a portfolio. The composition of the portfolio should align with an investor’s risk profile and appropriately distribute across the asset classes. Only then will it complete the whole process of successfully implementing financial resolutions.