One thing which almost everyone does in the last week of December is to pledge a NEW YEAR RESOLUTION
And then by the end of January, 90% of this goes up in smoke!
After all, changing habits is not easy it needs constant reminders and hence this non-follow-up of resolutions and subsequent BACK TO SQUARE ONE!
Hence it's prudent to have an EVERGREEN WEALTHY RESOLUTION than just a NEW YEAR RESOLUTION
We have seen laymen getting into Resolution Pledging mode with huge excitement promising themselves they WILL stick to it.
But how many do?
Less than 10%
Are you in that rare 10%?
If you are not...it’s better, you get into the mode and scale up yourself.
It's indeed super difficult to CARRY through a new habit after a few days as so many tempting things keep popping up.
Give it a TWIST
Instead of having a Resolution only for the New Year why not have a Resolution for a NEW WEALTHY YOU!!
Yes. Just change the track. Get into a habit of sticking to a resolution that you can easily stick to throughout life and then see your life move from average to good to better to BEST LIFE
Here we go on the WEALTH RESOLUTIONS that you have to stick to throughout your life so that you #DontRetireRich but the #WealthOfWisdom that this article shares.. will elevate you to RETIRE WEALTHY
What’s shared is SIMPLE AND VERY EASY TO FOLLOW
Something which is so easy that you will feel that I think I am already doing it.
But...you are not!
Maximum miss out
1. PLAN EARLY FOR BIG SPENDS
Identify the big-ticket spending and plan to save towards the same.
Yes... many do plan for Big-Ticket spending like Marriage, Owning House, etc
To simplify your life even further, plan early for even the ANNUAL Big Spending like the
School Fees in April-May
Festival Spending in October-November
This will help you plan your cash flows and avoid selling your good investments and God forbid...getting into loans
2. AVOID EMIs LIKE A PLAGUE (rather like Covid!)
The Buy-Now-Pay-Later is a scheme that is the BIGGEST hurdle in you moving up the WEALTH scale.
Avoid the EMI like a Plague (rather like Covid)!
Use CASH always...this will straightaway keep you out of getting into an EMI trap.
Unless it’s a Home Loan EMI, you have no right to get into an EMI and get yourself trapped and shave off your wealth.
EMIs reduce your cash savings and consequently your money which was supposed to create Wealth for you and your family is now going to service debt and thus postponing your Wealthy Retirement Life.
SIP thrills. Do REVERSE EMI by investing in SIP
Invest in Equity
Mutual funds via SIP (EMI in Reverse) and buy that Luxury Product with YOUR OWN
The satisfaction will be unparalleled
(Read this useful blog
DO REVERSE EMI TO BUY YOUR MERCEDES!
3. GET COVERED BY EMERGENCY FUNDS AND INSURANCE
Earlier I had to take huge pains to explain the benefit of the Emergency Funds. The Covid experience has now made even the layman understand the importance of the Emergency Fund.
If you don’t
have an Emergency Fund, SET IT UP NOW!!!
Be prepared for Emergencies: Medical contingencies, job loss, and salary cuts are some emergencies that you must be prepared for.
Sadly, the layman continues to ignore the Insurance part (especially the Term Insurance part).
Term Insurance is a MUST, especially for a Bread Winner. Term Insurance offers HIGHEST Life Cover at a Low Premium protecting your family from a financial crisis in your absence.
4. Get an AMG
An AMG (Advisor/Mentor/Guide) will help you scale up the Wealth Ladder faster, quicker, and relatively stress-free.
The "I have Google" approach has ruined the finances of so many people and I have seen even the so-called highly literate Tech Guys making blunders by investing in selecting funds and then losing HUGE.
The Internet won't give you personalized suggestions. To build long-term wealth, always follow your AMG…Advisor-Mentor-Guide
Having to choose amongst 1000s of funds based on asset class, market cap, investment style, etc, is indeed a herculean task
Selection needs to be based on your risk profile, investment horizon, asset allocation, and various factors as each fund serves a different purpose in a portfolio.
In such a scenario, advice from an AMG (Advisor/Mentor/Guide) is a must
Don’t become a #PAISA WISE RUPEE FOOLISH
“Focus on these small wins so you can make gradual progress,” Charles Duhigg, author of “The Power of Habit” and a former New York Times writer, said. “If you’re building a habit, you’re planning for the next decade, not the next couple of months.”
“No one's ever achieved financial fitness with a January resolution that's abandoned by February”
The resolutions shared here are not for a year...it’s a VEDA VAKYA (GITA FOR INVESTMENTS) for LIFE LONG
The ideas shared here are Meaningful, Measurable, and DOABLE.
"No matter how hard the past, you can always begin again."