Have you taken New Year’s resolutions on January 1?
Hopefully you would have taken New Year’s resolution. Now it is almost a month into the new year and by now are you still following. If you are following kudos to you and please continue to do so.
Most of you might lose sight in a week or month or the resolution dies in a few months. Hence I am writing this log after a month, so that you can achieve things in life.
3 tips to follow in 2020 ;
If you want to make this new year 2020 as yours, you can follow this simple 3 tips. You can work on any of the below areas to make it work for you,
There can be many areas you want to work and improve. Take one common area to work on. I want to work on my health.
Below is the 3 step to make it work in this year,
1) Take an action
2) Believe in an advisor
3) Evaluate or monitor constantly
If i want to improve my health, i need to be cautious and careful on what i eat, when i sleep etc. I can start working on these things. Over a period of time once I bring in discipline, I can go for an advisor.
A dietician or nutritionist can advise on the right food based on my body type. I can start following the tips for maximum benefits. Then comes the evaluation or monitoring part. As you are changing your food habit it needs to be monitored. You need to give up your old habits to form new habits.
Hence the third step becomes the most important one. Now the new habits are formed. You need to just keep monitoring the results by bringing effectiveness.
3 tips to follow in new year 2020 for higher returns ;
The most important part of everyone’s life is Money and investments. Most of you want to do something in that part but you keep postponing. Only way you get rid of money woes in your life is by taking an action.
“You can never have more money to start investing,
You need to find a way to make an investment “
Most of you might resonance with the above sentence. I had a friend who have been postponing his investment decision for the last one year. He eagerly asks regarding stock market and finally ends up the conversation with investment in the next 3 months.
As mentioned in the area of health, the first step is going to be an Action.
Take an Action :
First and foremost step is to realise the income and expense in your life.
Are you earning more than your expenses ?
If not, this is the first red flag in your personal financial life. You need to break down the expenses you are doing week on week. Even on a daily basis, to identify all the small expenses which become huge at the end of the month.
Generally you need to save at least 25-30% of the income. Savings is again for investing needs.
The easier way is to pay or save for yourself first. Then look at paying the bills.
Why Financial Advisor ?
Just like a Doctor, he helps you in improving the financial situation. Diagnose can be done by purely understanding your risk taking capacity and capabilities. Each one is different and hence investment solution is also going to be different.
Based on his evaluation if you are an aggressive investor then you can look at investing in equities.
Equity investment doesn’t have to be huge. One simple way is to invest on a monthly basis. This is similar to Systematic Investment planning. Apply the same logic in direct equities.
In some of the savings linked demat accounts, they provide this option. Customers need to provide the stock they want to subscribe and just add it in this loop. Till that time period is over, the system automatically buys those stocks in small quantities.
Evaluating or Monitoring constantly :
The next big challenge in direct equities is the monitoring process. As the stock tends to change very quickly, you should be able to monitor the news all around the clock. Any one news can deter the returns and you should be vigilant enough to sell off when needed.
Follow the above 3 step process whenever you want to change the way you do certain things and your life is not going to be the same.