Creating your New Year “Financial” Resolution

Recent data revealed that January is the busiest month of the year in Gym’s across the globe. Well, we all know this is due to their newly aspired ‘New Year Resolutions. The ‘New Year — New Me’ mentality proves to be a ‘Money Bagger’ for Gym owners. But as Feb & March approaches, nearly 60% of the members who enrolled eventually quit because they feel that something is easier said than done. Everyone is looking for quick results, be it transformation of their body or their investment portfolio! Little do they realize that ‘Resolution’ means ‘Commitment’. Commitment to do what others are afraid to do.

This year, Let’s take a new resolution… A New Year “Financial” Resolution!

So, what exactly is this Financial Resolution all about?

Well, it is a commitment to upgrade yourself to be in a better financial position than you were last year by making better financial decisions, spending logically (most of our spends are emotional & impulse based), Invest responsibly, set life goals & be disciplined about your goals.

Now you would wonder why to take a financial resolution. We are already tracking & managing our finances & things have been going pretty good till now, so what will change by taking this resolution?

Well, the answer is ‘Everything’! Let’s see what changes your financial resolution can bring in your life.

1. Improved Financial Awareness: You’ll develop a clearer understanding of your income, expenses, and where your money goes. This awareness can help you identify areas where you can cut back or make smarter financial decisions. you can implement better budgeting practices.

2. Debt Reduction: A financial resolution can focus on paying off high-interest debt like credit card balances or student loans. Reducing debt can bring greater financial freedom and less stress, improving your credit score and overall financial stability

3. Increased Savings & Investments: Whether it’s building an emergency fund, saving for retirement, or investing for future growth, a resolution to prioritize savings can lead to greater financial security and wealth-building over time. Saving consistently, investing wisely, and avoiding poor financial choices contribute to a secure future.

4. Clear Financial Goals: Setting clear, achievable financial goals gives you direction and purpose. Whether it’s buying a house, going on a vacation, or saving for a child’s education, having specific financial goals can keep you motivated and focused.

5. Improved Credit Health: If your resolution includes improving your credit score, making timely payments, reducing credit utilization, and avoiding unnecessary debt, it can lead to a stronger credit history. This opens up better opportunities for loans, lower interest rates, and financial products.

6. Stronger Relationships: Money is often a source of tension in relationships. By setting and achieving financial resolutions together, couples can reduce conflicts related to money, align on shared financial goals, and build a stronger partnership.

To summarize the above, setting & sticking to a financial resolution can drastically improve both your everyday life & long-term future, bringing better stability, financial freedom & life changing opportunities.

You must be wondering how to set a financial resolution as it all sounds so complicated? Well, I have optimized the process in simple words for you.

The 5 C’s!!

Commitment, Clarity, Consistency, Courage & Conquer.

1. Start with a commitment to understanding & accepting your current financial situation & making notes & jot down points where you can improve your finances. In short, take a Financial Health check-up.

2. Next, have clarity about your goals, aspirations, cash flows, assets & liabilities. Then assign each investment to specific goals. This will assist you in drawing a roadmap to manage your finances & achieve your goals effortlessly

3. Once you are clear about goals & investments & they are aligned, be consistent & disciplined with your plan. Do not wander or deviate from the set plan unless absolutely required

4. Being consistent isn’t easy but you need to be courageous enough to stay invested even during adverse situations like market volatility, economic instability or other uncontrolled events.

5. As you have achieved the above 4 c’s, you will conquer any financial turmoil like a pro.

To Conclude, A financial resolution is like a marathon race, you don’t have to sprint run to the end but slowly & consistently move forward because the key is not just the destination but the journey itself which will take you towards your goals.

The best way is to consult a Finance Professional before embarking on this journey as he would assist you in managing your emotions & impulses which is the key to achieving financial freedom.

Let’s take a Financial resolution this New year!

“I will be more responsible with money by tracking all my spending & not giving into emotions or impulses before taking a decision to spend. I would also make smart investment choices & take calculated risks with my investment by consulting an expert finance professional. Finally this new year, I will improve my credit score & net worth by being disciplined with my cash-flows.”