Money management should be holistic. How we save or invest is important, but our health and time management is more important.
Personal Finance Resolutions for 2022
- I will not be in a hurry to invest or save money – not before I protect my family with adequate life insurance, health insurance and an emergency fund.
- I will reduce or preferably stop eating all forms of sugar (white, brown, jiggery, honey etc.). Sugar is an addictive slow poison and can destroy your health.
- I will eat fewer carbs. The SEBI multicap approach would work great for a diet. From 70-80% carbs, why not reduce to 25%?
- I will stop or at least reduce eating out – too much sugar; too much salt; what is good on your tongue is often terrible for your body.
- Rain or shine I will exercise for one hour a day. I will also double this time to think about my life and to process diverse thoughts. Don’t touch that mobile or headphones!
- I will recognise the importance of inflation and stop obsessing about ‘regular income’ or pension.
- I will list my financial goals first, plan a strategy and then worry about investments.
- I will recognise the returns I need for my financial goals and invest accordingly. I will not madly chase after returns.
- I will ensure all my tax planning is perfectly aligned with my goals. I do not care whether it is April or November; my tax planning depends only on my goals, for which I invest all through the year.
- I will not search for a ‘good pension plan’ or a ‘good child plan’. I recognize that a good plan is the only one I make based on a diversified portfolio.
- I will not worry about my mutual fund holdings each time the market slumps. The secret to building wealth with equity is patience and consistent investing regardless of market conditions.
- I will not stop my investments because the market is at an all-time -high or wait for a dip.
- I will learn to analyze investments beyond returns in a goal-based manner…
- Once my basic fortifications (insurance, emergency fund) and savings and investments are in place, I will only look at my portfolio once a year for a review. I will also “graduate” from reading/viewing personal finance content, particularly.
Happy investing in 2022!
