Millions of people make new resolutions to start their lives on a new journey every year. Did you know that the number of gym membership subscriptions go up around the beginning of the year? That’s right. But how many are actually able to follow through these resolutions is another question. No matter what you are looking to achieve, there is a very simple recipe to making your resolutions stick with you, making your dreams and action plans become a reality.
The past year taught us some important lessons on personal finance. As a result, people are busy making and undertaking new financial resolutions. Have you decided on yours? If not, then don’t let this chance to start fresh simply pass you by. Once you have made a resolve to accomplish something new in your financial life, then what are you waiting for? Time to set it into action, with these four techniques, that will go a long way to making your resolution stick with you through the coming year, and into the future.
Firstly, be specific to yourself
Taking up a resolution to do something new can be daunting. This is truer if your resolutions are set on big dreams. For instance, some people are taking a resolve to buy a home faster, and to reduce their fixed monthly expenses much earlier than before. Others are prioritizing to reduce their dependence on public transport, and saving for a car in the next one or two years. Yet others are looking for a stable, secondary stream of income. Building big things as these takes time, and an action plan to make it happen over time. Be specific about what you want – what is your budget and your needs from a new vehicle? How will you arrange this much money in one year?
Answer these questions before working towards achieving your financial resolutions, so that you know exactly what you are working towards at every point in time.
From resolution to a plan
Taking up financial resolutions is one thing but to achieve them you need to work towards them. However, as we noted earlier, making big things happen takes time and a map to follow over this span of time. That’s why, you must turn your financial resolution into a plan that you can follow. In order to make this happen, you might have to talk to other people, or do some research on the internet.
For example, if you want to save for a new car in the next two years, work out the financials – how much money do you need to make a down-payment, and how much are you willing to take up as debt? How can you leverage the power of investing to grow your savings for a new car to the maximum, while making sure that you do not lose your money in the process? Work out the actuals, and turn a big achievement into a series of smaller actions. This brings us to the next point.
Leverage the power of habit
Habit helps you work towards your goals in the world of savings and investments. You can accomplish big things either by taking a big leap in one go, or by taking smaller, more reasonable steps everyday. For example, it might be difficult to come up with a sizable sum to buy a car in one go. But setting up a 2-year savings plan into action, you can make a habit of saving 15 thousand rupees a month, or 500 every day, towards a new car. Invest this money with instruments that give you good returns, by opening a demat account, and your action can be achieved in smaller and simpler steps. Understand the power of habit, and give your financial journey a fresh start this year!
Dream, plan, action!
Once you have broken down your goal into smaller, actionable steps after understanding the power of habit, all that is left for you is to make the first step, and repeat the process continuously. That first step has the power to make or break your game plan. This is exactly why new beginnings are difficult and challenging – know that the first step you take is in a positive direction towards your goal.
For example, consider someone who is looking to build a secondary stream of income with their existing savings from the stock market. While such stories are not really stories, making this come true requires not only discipline, but also the right first step. This new year, give your financial life a new start, with Angel Broking – open a free demat account, and start giving your financial resolutions a new shape, by leveraging the power of growth with equity markets.
Angel Broking has also issued a new report outlining our top picks in the stock market for the coming year – a gift for starting the year with a #smartsauda, that will lay the foundation of long-term prosperity, and help you achieve your financial goals by making money work smarter for you. That is what we are best at, and we would like to invite you on this new journey at the onset of 2021. Here is wishing you a happy new year!