Make financial resolutions for a secure future

Every year we make so many resolutions, which usually range from very personal – will lose weight, will travel more, will work hard etc. to grandiose ones such as will buy a house, will get married and so forth.
All these resolutions are aimed at bringing greater joy and satisfaction. And to achieve satisfaction, financial well-being is essential. And financial well-being can never be achieved without proper planning. So, to assist you, I have put together some must make financial resolutions. These are extremely simple steps but very important as they pave the ground stone to build your financial security on.

Resolution 1: I will not wait for a large corpus to accumulate before I start planning
In real life, unexpected wind falls are extremely rare and most of us rely on our regular incomes. Therefore, I would advise you to stop waiting to accumulate a large corpus because frankly, that might never happen. Start small via fixed deposits, systematic investment plans, regular pay life insurance plans. Another advice would be to focus on the time in market rather than trying to time the market.

Resolution2: I will maintain a personal income and expense account
Many times, it is not as if we are ignorant of the fact that we need to plan our finances. But, there is a lack of understanding of financial goals or we cannot decide the ideal portion of our income which should be kept aside to meet those goals. The simplest and the best solution: You must have a personal income. This would help you review your needs and income every quarter, give you a clear idea about the amount that can be invested out of your income. I would advise everyone to invest some amount of money for sure that best suit your identified needs rather than letting it sit idle. You can do so via recurring deposits, NSE certificates to begin with and slowly and steadily start investing in life insurance, MF's to build a portfolio.

Resolution 3: I will assess my long-term ability to pay before taking a readily available loan
I understand that the pressures of the modern and urban world that we live in are huge and each of us is constantly trying to improve our monetary status because let's face it – it is all about presentation today.
Credit cards and easy loan option has made life really easy and we can tend to believe that we can afford everything that we aspire for – big cars, holiday abroad, fancy weddings, you name it. But can we really? The ability to pay is not always the ability to afford.
I would sincerely advice you to avoid the falling in to the vicious circles of loans and credit cards revolving credit. Instead, assess your needs versus your aspirations and plan your monthly to quarterly budgets accordingly.
Use loans in an asset that is essential and ensures ease in life or will give returns in future rather than something which just has snob value. The life and health insurance for you and family, education corpus for children, retirement corpus for you etc. are far more important than a momentary splurge on a luxury car which might make you happy now but would lead to long-term misery later. So, first secure the future needs and dreams of your family and then of course go ahead and enjoy the life.

Resolution 4: I will assess my risk taking ability before investing in a financial instrument 
Once you have an estimate of how much savings you will need, it's time to think about the type of financial instrument that best fits your needs. Usually there is no one instrument that can meet all your requirements. You can choose an instrument depending upon the risk profile and how much time you have to attain the financial goal you are planning for – If you have a mammoth capacity for taking investment risks and your financial horizon is over 10 years, you may choose market-linked instruments with an equity bias.
For the risk averse, debt instruments make the most sense. You may also choose a balanced fund to invest in. Also please do not invest in short-term financial instruments for your long-term needs and vis-a-vis.

Resolution 5: I will save with an aim towards financial protection
To reiterate again, mere saving is not an equivalent to financial protection. Money is like manure, it needs to be spread for fruitful growth. Buy a health or life insurance to secure yourself and your family and always keep a sum apart for life's emergencies.

Resolution 6: I will start planning for retirement
Youth always feels invincible. We are earning well, living great, and feeling good…retirement is
something for the old to worry about; there is always plenty of time. But, this is a misconception and for the coming year, you should at least start thinking about planning for retirement. When we are young the responsibilities are less and we can save a lot more at this point of time. Also, the cost of living increase every year and the later you begin the less you save and this is the recipe for a disastrous old age. You really do not want to spend your last breath on the mercy of somebody else do you?

Start early and retire rich!
To conclude, some wise person once said that "a big part of financial freedom is having your heart and mind free from worry about the what-ifs of life." These resolutions can make this happen.
Wish you all a very happy and financially healthy future!