HEALTHY FINANCIAL RESOLUTIONS FOR EARNERS
1. I will pay my dues on time
· Credit card issuers, home loan lenders, telecom companies and insurance firms send SMS alerts whenever a payment is due.
· Make it a point not to miss any payment by giving auto-pay instructions wherever possible.
2. I will not waste money on upgrading to new gizmos
· Ask yourself if you really need to upgrade.
· You could be derailing other crucial financial goals with such unnecessary purchases.
3. I will not take on too much debt
· Don’t fall into a debt trap unknowingly.
· If over 45% of your income is going into paying loan instalments, it is cause for concern.
· The danger mark is even lower at 25% for non-mortgaged loans.
4. I will not stagnate in a bad job
· Explore options in the job market if you are not happy with your current assignment.
· Sign up with networking sites and brush up your resume.
· Upgrade your skills to be able to move to a more satisfying profile.
5. I will buy a term plan for my life insurance
· Forget costly Ulips and traditional plans or their tax benefits.
· Just buy an online term plan for at least 5-6 times your annual income.
· It is never too late to financially secure your dependents by covering your earning age.
6. I will not invest in a financial product I don’t understand
· Investing without understanding a product is like gambling.
· Promise yourself you won’t do it.
7. I will not be lured by high return schemes
· Don’t get lured by scamsters offering fantastic opportunities to make money.
· Remember, slow and steady wins the race.
· Otherwise, the best way to double your money is to fold it and keep it in your pocket.
8. I will sign up with a portfolio tracker
· Aggregate all your investments at one place by signing up with a portfolio tracker.
· Some charge money, others are free.
9. I will review my portfolio
· A yearly review of your portfolio is important to know how various investments are doing.
· Rebalance if you need to, and trash the laggards.
10. I will go through these resolutions every month
· To ensure that you stick to your resolve, go through these resolutions every month.
· Take corrective action if you have digressed from the plan.