1. Get Financial Protection
The first resolution is about getting adequate financial protection on all fronts. Ask yourself the following questions:
- Do you have adequate life insurance to take care of your dependents in case of any unfortunate event?
- Have you bought adequate health insurance to protect yourself and family from ever increasing medical costs?
- Are you adequately covered for disability, an area generally ignored by most people?
- Do you have a Critical Illness Cover?
- Have you protected your assets – house, office, car, valuables etc.?
The answer to many of these questions would be a ‘No’ and that should be taken as a wake-up call. So, get financial protection one by one in the above mentioned areas.
2. Make Savings a Priority
This year move from ‘Residual Savings Approach’ to ‘Prioritized Savings Approach’. The more you will save and invest, sooner you will achieve financial prosperity. So, instead of beginning with spending every month and then saving & investing whatever is left, make savings a priority now. This resolution will not be possible without formulating and adhering to a budget. If you spend everything you earn, you will never be wealthy. Spending less than you earn is the only way to achieve long-term financial security and budgeting helps you in doing so.
3. Say ‘Good-bye’ to Agents
Lastly, it’s high time to move from ‘agents-based FREE advice’ to ‘consultant-based FEE advice’. Remember, there are no free lunches in life and you have always been paying for financial advice even through agents. The only difference was that it was indirect payment to them so far paid in the form of commission and other charges. You were paying and still not getting the best advice. Isn’t it a good idea to hire a Certified Financial Planner by paying fee directly and get unbiased advice that suits only your interest?
Conclusion
The above resolutions will act as a guide to help get you where you want to go financially. However, making New Year resolutions is easy, following them is not. Research says that only 12 percent of people stick to their resolutions as it requires sincerity and discipline. Most people make their resolutions pointless as they stick to them for about a month and then go back to their old habits. Hope you will be among the 12 percent sincere people and add value to your financial life in 2013.
