The New Year is a great time to reset the life for a new start. It is these first couple of weeks of the year when people commit with determination to all sorts of goals, from staying healthy to learning new skills to losing weight to financial planning. Some of these resolutions come true while many others become part of the to-do list next year.
While the days leading up to New Year’s Eve are often spent reflecting on the year gone by, the following days are the perfect time to create a solid plan and make some sensible decisions that will impact one’s long-term physical, emotional and financial well-being. One can start by consulting a dietician, opting a healthy lifestyle, exercising and reviewing last year financial scorecard to get finances in order for the upcoming year.
Ms. Anjali Malhotra, Chief Customer, Marketing, Digital and IT Officer, Aviva Life Insurance recommends 10 new year goals to enhance the quality of life: –
Follow a healthy lifestyle
In today’s fast-paced, work-obsessed world, lifestyle diseases have become a norm. Therefore, the first priority in the New Year should be to craft and follow a healthy lifestyle. Regular exercise is vital for a happy mind and a healthy body. Start with a brisk walk or join a workout group to adopt a healthy lifestyle. The right balance between work and leisure helps in stress management, which, in the 21st century has taken a superior position in determining one’s health. One should look for a comprehensive health insurance plan for critical illnesses to secure one’s loved ones from financial insecurity.
Eating healthy food is a common goal for all. In today’s sedentary lifestyle, it is important to be conscious of one’s body requirements. Consumption of fluids, water, fibrous fruits, leafy vegetables are important factors to achieve a healthy living. Eating healthy not only improves energy levels, but also improves hair, skin, and nails. One should avoid crash dieting as it can negatively affect the entire health.
Make a list of your personal goals
While making new year resolutions, one should always review the assets and liabilities and define personal goals. Over time, it is easy to accumulate lots of savings accounts and credit cards but to take advantage of these savings one should think about the goals and needs. Take stock of exactly where one would spend and save for instance saving for a new home or car or spending on child’s education or a dream holiday.
Be mindful of your spending
One thing which everyone needs to do is establish a plan for managing finances. By preparing a budget for the coming year to be in better position to understand where the money is being spend and where to stick to savings. Budgeting is the most important thing to be financially successful and by being frugal in the spending it will help free up money for more important goals.
Save and invest
Investing helps in growing the saved money at a quicker rate. But the first step before investing should be saving. There are lots of ways to start investing. For a professional advice, seek a regulated financial adviser or open a separate savings account, invest in stock market or invest in an insurance plan that returns double the premium on maturity.
Create an extra income
One should find a way to start making more money or alternatively, invent a plan to cut down on current costs instead of spending all of it. The extra income generated can be used to pay off any debts, shorten the length of loan, save a little more towards retirement or will simply boost monthly finances.
Secure your family’s future with right insurance products
Life insurance is the first fundamental block of good financial planning. Miseries often knock on the door when least expected. One can’t overlook the importance of securing the future of one’s loved ones. Assess the amount that family would require and be prepared for uncertain events in life with the right insurance products. A term insurance plan is extremely affordable yet provides comprehensive security to the insured and his family. One should also consider investing in child insurance plans to fulfill the child’s dream and for their secured future.
Be debt- free
Getting out of debt is another key step to taking control of finances. The key is to make a list of all debts, increase in EMIs, pay bills on time, clear all outstanding debts to have more freedom to do the things that one wants to. Being debt-free also gives greater job flexibility and more peace of mind.
Build an emergency fund
An essential component of a solid plan is an emergency fund to cover financial shortfall on unexpected rainy days. Start with a smaller emergency fund depending upon the current income, number of earning members family and the assets. Consider setting up automatic transfers from paychecks to a savings account but the emergency funds should be large enough to fuel monthly expenses for at least six months and should be liquid.
Start saving for your retirement
Saving for retirement is one of the most important aspects of a financial journey. Invest in retirement plans like public provided fund, annuity plans, National Pension Scheme or Insurance Policies that guarantee return on the maturity of the policy. It helps in growing the investments by earning interest on interest. With the increase in salary, contribute more to retirement plan so that you can retire rich.
Money saved is money earned and it plays a great role to ensure peace of mind in one’s life. For a happier and more secure tomorrow, make your new year resolutions well in time and execute the plans and most importantly, don’t neglect making a good financial plan for yourself