New Year Resolutions - 2013

 Introduction

One more year has passed  into history . At the end of every year and beginning of the new year, we all strive and resolve to do things which we feel are integral and important. As the new year begins, lets resolve once again and make a promise to ourselves , our children , our families and more importantly our dreams and aspirations.

Get ,Set, Go

Let’s start with  the basics.

1.    I pledge to save 15% ( if not 20%) of my net salary every month – Pay yourself first.

2.    I will invest the savings into products  I understand

3.    I will make a budget of my expenses and review the same every month on the – 5^th of the month  or the Ist Sunday of the month ( By setting dates, you are being disciplined and also taking responsibility )

Once the basics which is the fulcrum on which the wealth creation is set, we can go forward to securing it , which will be :

4. I will take care of my heath and will allocate minimum 30 minutes in a day  in this activity , no matter what.
5. I will take care my risk adequately in the following manner:
1. Life Insurance – I will revisit my life insurance , ( which you should relook as ‘life style maintainece  cost’) , and will use Term Plans to get myself, as a chief earning member of the family adequately covered, if not covered.
2. Health Insurance – Calamities does not come with advance notice . I will revisit my health insurance and understand the ‘ wordings ’ of the policy issued . Also to augment my overall life style needs will augment the company provided health insurance with  an additional personal health insurance cover
3. Other Insurance – If you are a self employed professional, will revisit the Personal Accident Cover. Also , will revisit the home insurance policy, if any.
6. I will look at investment products  and insurance products separately. Insurance is risk management and investment is wealth creation .

Now that you have set the basics and secured it, lets pledge on the operations part of the resolution

7. I will set aside 30 minutes , every month , say on the 5^th of the month or Ist Sunday of the month and review my bank statements , to check if any unknown transactions are not reflected .
8. I will check my investment portfolio ( remember , not a review only check ) to know the status of the investments and its current value.

Now that you have the house in order and set the house rules, another aspect  which is found missing is to be done and which is very important – Inform and share with your family member ( it could be your  spouse , your brother, your children, anyone whom you trust with), the details of all investments , assets, liabilities, so that even when you are not around, things move seamlessly.

Well planned is well began . And well executed is the reward for all the planning.

Wishing you all a great year ahead and Happy Investing