New Year 2018 is coming and we all are busy making different plans for our future. Among these plans, there are some financial plans to improve our health, social and family life. We have to make some financial resolutions to achieve these goals in New Year 2018. And by a proper financial planning, we can fulfill these plans to live a worry-free life. Here are the 5 financial resolutions to take a step closer to your goals.
We pay every month Income Tax, Bank Loan,
EMIs, Children school fees, medical bills, house rent and even more. But when we draw our monthly budget list, we see that we didn't save or pay for our own selves. Unless one learns to pay himself, money will just come and go without actually entering your pocket. So make it the first priority to pay yourself, which will be your first financial objective.
Wisely invest your money:
In today's world, this is a fact that Savers are the Losers. They save paper money but its value keeps depreciating due to more money printing and inflation. Hence you should invest in assets like
equities,
commodities, real estate and much more. These assets value over a period of time keeps increasing due
to
inflation.
Take insurance protection:
Investment and insurance are two different things. Investment is when you want to grow your wealth and insurance provide you protection from uncertainties. The insurance policy cover assets like house, car against accident and natural hazard and medical expenses. So protect your family and other major assets with proper insurance.
Do proper asset allocation:
The main basis of the
investment is Asset Allocation. The 90% portfolio variability is due to asset allocation and other 10% from investment selection and financial market. When equities rate fall down due to
financial market, gold is the only commodity which balances our overall portfolio performance. Hence, Asset allocation would be your automatic portfolio insurance.
Make proper Retirement Plan:
If you want to enjoy the same lifestyle which you are currently living even after your retirement. You have future plans for your family and children's education then start planning for it today. Be realistic and make an estimate of your needs.
