The Right Start for 2016

After almost 20 days in 2016, I know most of you will already be haunting under guilt shadow of breaking most of the resolutions that you made for 2016. We take decisions in moments of spurts (like New Year) and wishfully think that lives would improve. But the old habits die hard and then we start breaking these resolutions as the reason fades. And, that is the reason resolutions fall flat at the end of the year. It’s better to make and follow rules and not decisions where the echo to break it sounds constantly in the second ear.

However no studies have been done but my gut feeling says people are most guilty of breaking the resolutions related to – Health and Personal Finance.

Health part I leave to professionals and pray someone helps me too):

But in personal finance, I can help for sure. And to start with let’s put things straight – We will have no resolutions. The first month has still 10 days and let’s make most of these.  In the coming days before the year sets in fully, following things need to be taken care of, checked and planned. These are:

(The list is for all so well done!!! From my side, if you have already satisfied any or all of the below pointers)

1. My Goals Review: Not most but some goals may change or an alteration be needed for certain goals under fulfilment. You may addition (or demise) in family and the goals related to that person may require change. These need to be accounted and proper change must be discussed with your financial planner. Even modifications like change in vacation destination or car model need to be communicated. Year start is just the time to set the goals right.
2. My Investment Options Evaluation: Although your financial planner must have done asset allocation and review as per schedule but you as a person have evolved during a year constantly in touch of the world and knowing new things. Is there any investment option or a venture you want to try, this is the time to communicate your financial planner.
3. My Credit Worthiness Check: Each year we do small mistakes like bowing to calls to apply a new credit card, applying for consumer loans to avail benefits of a sale season or delaying some monthly payment. This is the time to evaluate what has been done wrong in past and making a mental note not to repeat these in new year to come. Credit worthiness is what makes you eligible for respect in eyes of people you deal your finances with. Protect this virtue with care.
4. My Contingency Coverage Review: Have I made some use of my contingency fund? Or claimed any of my insurance policy? It’s the time to replenish the line of protection that you have used last year. Discuss with your financial planner, what needs to be done in case of insurance lapse or use of partial coverage.
5. My Records Updating: This is the time to recheck if all your records are complete and all details are proper. All nominations are recorded and necessary changes have been made in will if required. If case of change in address, marital status, minor attaining majority or death in family member the changes in details have been made to necessary authorities.
6. My New Rules related to Budget & Savings: The rules related to budget and savings are not exact science as people tend to learn and develop new ways when they start practicing. So if you wish to make changes to these, the New Year is perfect time start these. So in case you are planning to increase your savings by 10% or planning to increase savings by changing your cable plan or any other thing, just get started in January itself instead of procrastinating it.
7. My Planning for Family & Society: It’s my personal experience that, successes in earning money or business has no real happiness if it is not shared with family and friends. Everyone needs time to relax, meditate for a while and laugh & play like a kid. These gateways need planning in advance. It’s time to put a calendar for 2016 in front and plan those escapes with the family. Plan the events that will benefit society like planting trees in your city or participating in city events. A bit of planning makes entire year a fun year.

As I said no resolutions are required if you are following basic rules of financial planning. Just an overhaul and a tightening a screw here and there will make a great year ahead.

Share your views in the comments section and your itinerary for the year 2016.