New Year Resolutions
Christmas is over and we are now looking forward to the New Year. And for each New Year, we are asked – What is(are) your New Year resolution(s)?
I am one of those people who start off the year with a list of resolutions … and then, to my dismay, did not do anything about it when I check it on December 31st! Yup, that has always been how effective my New Year resolutions are to me.
However, looking at how 2008 has been and how the financial turmoil can wreck havoc even to the most seasoned investors, I am thinking that perhaps it is time to set some resolutions for my finances … and make sure I stick to it. The trick is to make sure I have a shorter list and to publicly annouce it – come December 31st, I shall review it together with you!
Resolution #1 – Save before spend. Easier said than done. Been doing this for a while now, but still, sometimes I will pay my bills before I save. And after paying off the bills, the balance may not be sufficient for spending, and the saving bit is “postponed” till next month. Not ideal, so must change this in my January’s pay!
Resolution #2 – Track spending … diligently.Ok, this is where I slipped too. 2009 must see me do this to the dot. I know it creates stress to some people, but I am a little of a control freak. I am more stressed not knowing where I spend my money compared to what I spent it on.
Resolution #3 – Budget, budget, budget. This was planned for 2008 and the page I have allocated to this in my diary is only half written. *Grin* Must do this for 2009 seeing that the financial markets and the economic situation is not looking too rosy at the moment. Budget plays an important role to one’s financial standing. I know I have said it many times … so, I am going to make sure I do it this time.
Resolution #4 – Add an insurance policy. This is seeing that I will be adding a new member to the family. So, this is going to be a very important item, both for me as well as the kid. We can never get enough protection but it is also equally important to know what to buy and from which insurer.
Resolution #5 – Amend my will. Being prepared is always important, especially when you have dependants. With the changes to the family structure, I will be changing my will too. Estate planning is an important part of managing your finances and this part of it should always be reviewed and updated.
Resolution #6 – Live well. No matter how we plan and how we save, we must also take time (and resources) to live well. Wealth is no use without health. And to be complete, we must have health and joy. So, while we plan for the new year we should also take some time out to plan for how we can maximise our dollars doing things which will benefit us and the family, both mentally and spiritually. Finances for this purpose should be part of our budget and classified as “Family spend for happiness”.
So there, 6 resolutions surrounding my finances. Hopefully, this year, I will be more diligent and carry these through.
So, what are YOUR resolutions for the New Year?
