6 Financial Resolutions You Have Been Procrastinating Every Year

6 Financial Resolutions You Have Been Procrastinating Every Year

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Every year in the month of December we promise ourselves to adapt one good habit in the upcoming year. And every year those promises fall short in just a couple of weeks. Be it joining the gym, or travelling more, or being responsible and buying term insurance plans; we end up doing nothing. Most of us just keep on procrastinating and give ourselves the excuse of ‘let’s-live-in-the-moment.’
This habit of procrastination is not good, especially when it comes to financial matters. You can never know what tomorrow has in store for you, so it is wise to plan things ahead and get your life sorted financially. Following are six such financial resolutions which you have been procrastinating for a long time, but it’s about time you adapt and follow these religiously:

1. Bulking Up (The Saving Account)

Saving money has always been an issue with most of us. And the pretty iPhone Xs or the drool-worthy Play Station 4 never really let us make that happen. After promising ourselves that we won’t make any unnecessary purchases, we end up purchasing something expensive which we don’t really need. And with that one purchase, our budget planning goes into the drain.

But this time, make sure that you stick to the plan. Save first, purchase later. Make a habit of depositing a substantial sum of your money into an account which you won’t touch. And take care of your expenses only from the remaining amount. That savings account will also be quite helpful in emergencies.

2. Making Good Purchases (Term Insurance) And Avoiding Bad Ones

There are good purchases, and there are bad purchases. That expensive watch worth Rs. 50,000 you got on your birthday comes under bad purchase. Term insurance that you have been postponing buying, whose annual premium would probably be 1/5th of the cost of that watch, comes under good purchase.

Term insurance is a safety net to your family if, God forbids, something happens to you. It will provide your family with a fixed sum as a cover, and it will take care of their financial situation in those difficult times. Be wise, make good purchases (first). So, compare term insurance plans online, look for benefits offered by reputed insurers like Future Generali, comprehend if the plan suits your needs and budget and finally zero in on the best term plan for yourself and your loved ones.

3. Curbing the Enthusiasm (Of Spending)

Make a monthly budget where at least 60% of your income goes to a savings account, in investments plans, and in any such activity where you’ll be either saving or growing your money. Take care of your expenses in the remaining 40% bracket. If possible, put the monthly EMI, if any, in this bracket. Spending less and saving more should be your mantra. Follow this and see a change in your bank account within six months.

4. Playing the Financial Poker (Investing Money)

With age, should come maturity. The maturity to understand that only a savings account isn’t sufficient to grow your assets. You need to invest money to make money. Your investment can be as per your expertise or as per your financial advisor. You may invest in property, stocks, ULIPs or start a mutual funds SIP; any field which you are aware of.

Earning money isn’t that difficult, growing money is. That’s the difference between the rich and the poor. They both know how to earn, but only the rich think about the growing part. Change your life by changing your thinking. Start investing.

5. Getting Rid of The Money (You Owe)

Debts are never good for your financial, social, and mental health. It creates a significant damage to your income thanks to the interest. If you have taken it from a friend, it’s never good for your social status, and it would never let you breathe in peace. Constantly you’ll be thinking of the money you owe.

It’s about time you take care of your depth. Start with larger sum and higher loan as they’re the ones that need to be dealt with ASAP. Then gradually start taking care of other loans one by one. You would have to prepare a strict budget, and your first priority should be paying the EMI as soon as you get your salary.

6. Planning of Quitting and Living Happily (Retirement Plans)

We always think that it’s too early to make retirement plans and we have the whole life ahead of us. But it’s not true. If you haven’t started the retirement planning in your early ‘30s, you’re already late.
Dealing with retirement is not easy, financially speaking. With zero income (or minimal if you’re a pensioner) it’s not easy to run a family. At that time your retirement fund comes handy. It not only helps you with day to day expenses but also take care of unseen expenses. Provided you have sufficient sum in it. If you have been procrastinating saving up for retirement as well, now is a good time to start if you want your retirement to be peaceful and away from financial worries.
It’s true that life is short. But it’s not that short that you would be spending money on anything and everything. Follow the aforementioned resolutions to have a safer, better, and happier future.

Happy Living!