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New Year resolutions for your hard-earned money

IndianMoney.com Research Team | Posted On Wednesday, January 20,2016, 06:22 PM

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New Year resolutions for your hard-earned money

 

 

It is the start of the New Year 2016. Will this be an auspicious year for you? Will this be the year when you finally grow rich? Perhaps….but you need to do something different this year, which you have not done in the past. Time to remember this famous saying “If you want something you have never had, you must be willing to do something you have never done." Do you have it in you to make the change?

SEE ALSO: How To Select Best Life Insurance Plan According To Income?

No more following the herd

You go to the mall to buy yourself a pair of cargo shorts. Do you pick the shorts you see everybody buying? No, you pick the brand of cargo shorts you prefer. You go out to dinner with your friends. Do you eat what everybody is eating? No, you pick up the menu and order the food items you like. You definitely are not a herd follower. So why should you be the follower of a herd, when you make your financial investments?

You pick up a pair of cargo shorts or choose food items from the menu, based on your likes and preferences. You do your research and pick up a smart phone, based on your judgment. Why should investments be any different? You must invest based on your risk tolerance (ability and willing to bear risk). If you are a conservative investor, you must invest only in fixed income instruments. Your money is safe (less risky), but you have to compromise on returns. You take less risk for less returns. If you are willing to take a higher risk, you can invest in equity. You get higher returns for a higher risk. Each investor has a different risk profile and invests in financial instruments, comfortable to him. How can you follow the herd?

SEE ALSO:Best Term Insurance Plans In India 

Be a disciplined investor

You have decided to invest in an equity mutual fund. You have started your investment in the equity mutual fund, through an SIP (Systematic Investment Plan). You have to invest money regularly, say at the start of each month, in the SIP of the equity mutual fund. You must be disciplined in your investment and invest regularly, in the SIP of the equity mutual fund. The same holds true for a recurring deposit. You must be disciplined and make your investment at the start of the month, in the recurring deposit.

SEE ALSO: Top 5 Best Term Insurance Plans in India 2018

 Go back to school

 Just as it is never too late to go back to school, it is never too late to learn. You need to keep yourself updated, on financial matters and investments. Subscribe to financial newsletters, magazines and eBooks. If you want to earn, then you must first learn. Learn how to invest, just like you would do in school. If you are a beginner in finance (know nothing about investments), start from the basics. What is investment? Why invest? What is life insurance? What is a fixed deposit and so on…

So make these resolutions and be rich in the New Year.

 

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