Well, it’s that time of the year again! When you start things with a clean slate, and resolve to make a new beginning. A lot of us make resolutions for the upcoming year. Most of them are forgotten in the first week, and by the time January is over, we are back on the old track. This year is going to be different, do I hear you saying that? Well, I believe you!
Most of us make resolutions about our personal life or our professional life. But surprisingly, we always seem to forget a very important aspect – our personal finances. This year, make some resolutions about how you will manage your finances differently, and of course, smartly. I will gently set you up on your way by sharing my new year resolutions with you.
So, for the year 2010, I resolve that I will -
Pay off my Credit Card Debts-
I will pay off all my outstanding amount on my credit card(s). I will not revolve any credit on my cards from now on. I will try to consolidate all my credit card outstanding in a single card, and settle it fully. In 2010, I will use my credit card as less as is humanly possible.
I will purchase a life insurance policy for me, a vehicle insurance policy for my car/bike and a health insurance policy (yet to decide the exact policy).
Make a Personal Budget-
Another important item, that I keep putting off every time. Not because making a personal budget is tough, but because my laziness overtakes me. So, no more laziness,I will make a personal budget every month in 2010.
Live within Income-
I think that if I am able to follow Steps 1 and 3 correctly, this will come naturally. But living within means does not mean that I will not live well. It just means that my expenses will be less than what I take home every month.
Regular investment is the key to long term financial success. Regular investment over a long term gives the phenomenon of compounding a chance to show its magic. Again, I will invest regularly, even if it means an amount as small as Rs 1000 every month.
Keep My Ears Closed-
The market is full of a lot of noise, most of which is rumor and hearsay. If I keep listening to everything and everybody, I will lose my focus very quickly, and get distracted. Therefore, I will keep my years firmly shut and not make the common investment mistakes.
Keep My Eyes Open-
On the other hand, I will keep my eyes wide open. This will help me identify good and meaningful investment opportunities. It will also help me to monitor which way my investments are going.
Learn Something New-
Personal finance is a wide wide world, and I have still to learn a lot. I will learn and master at least one new aspect during 2010. You can also deceide to learn something about an unknown financial topic. Go ahead, learn more about mutual funds.
Plan my Finances-
Last, but not the least, I will start my financial planning in right earnest.
So, this was a list of the personal finance resolutions that I hope to fulfill during 2010. Have you made any resolutions to put your personal finances in order? If no, then the time is NOW! And if you want to share your resolutions with the other readers, you are most welcome.
Wish you a Happy and Prosperous New Year, 2010!