It was indeed a boring day at work and I was just glancing through some reading materials when I came across this rather heart warming article by an economist in the business section of today's daily . I guess I may just heed on her pretty realistic advice . Not To Make Any New Year resolution :) what do you think eh ?
WHEN I think of something I'm surely going to break, nothing screams louder than a New Year's resolution. These resolutions are empty promises that I make to myself — that I'm going to significantly alter my behaviour at the stroke of midnight on New Year's Eve, based on sheer willpower. Eat less. Exercise more. Spend more time with the kids. Spend more time with the parents. Save more. Shop less. Learn to cook.
Learn to dance. Get a better job. Maybe even try the lottery in the hope of winning (where did that one come from?) . But , seriously, we all know the drill . We all want to drastically change our lives so we are where we really want to be. And I am sure this is all for a very good reason . Then, why do so many of us cringe or scoff at making resolutions ? Most of us think it's a useless exercise. And it probably is, because we do it with so little thought , planning MY NEW YEAR'S RESOLUTION ? NOT TO MAKE ONE ! and preparation to support the quantum leaps that are called for.
Surprise, surprise! Our resolutions fall through and while the intention was good, we feel bad we fell short and resolve never to have another New Year resolution.
In my book, financial plans rank a close second to New Year's resolutions as things that never quite happen. The same root cause pops up again — grand plans that rival achieving world peace. Financial planning. Budgeting. Investing . All that jazz sounds so overwhelming. Why bother? But wait. Before writing off financial planning altogether, here's a thought. Most financial plans tend to focus on endpoints. They might sound like this. I want to retire with a nest egg of RM10 million. I want
to own five properties. And so forth. This isn't wrong but you also need to make resolutions and plan the next steps too. Resolutions must focus on the first steps to attaining the ultimate goal. When the first or next step is identified , it then becomes purely a matter of putting one foot ahead of the other . I am talking about real small to do's.
Clear 75% of your credit card debt by, say, March and don't incur more debt. Ask the bank to reduce your credit limit if you have to. Use the credit card only twice a month.
Remind yourself by sticking a post it on the card. Go to your bank and place a standing instruction to save 10% of your salary. Then, see if you can notch it up after six months.
Never invested before and looking for that perfect investment that's going to make you truck loads of money ? Doesn't exist. Don't kid yourself. You're not Warren Buffett .
Just give yourself a deadline to pick a fund or stock and invest a modest sum in it.
Always losing when you invest ? Resolve to cut your losses when you're down 10%.
So, while we're used to hearing the whole spiel about building a budget and planning for retirement , perhaps we should do well to start thinking small. Who cares if it's not going to change your life exponentially ? The more important thing is ensuring that you sustain these small changes and keep building on them. Hopefully , your resolutions ( financial or New Year) won't be a one month wonder ! ^_^
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