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5 smart resolutions for the New Year

New Year comes and goes and so does the resolutions. For 2018, try to stick to the plan and complete them one by one

1. Save more, spend less (and pay bills on time)
A no-brainer really, but easy to say and tough to do. Check your past spends and work out how much you want to save each month. Allocate part of your income automatically so you're not tempted to use the money elsewhere. This could be in an auto-sweep fixed deposit, a SIP in a mutual fund or a transfer to another bank account. Use a money management app to track your spends, create a budget and get reminders to make your bill payments on time.
2. Clear high-interest debt
Do you have several credit cards that are maxed out to the available credit limit, and are you paying only the minimum due each month? If so, you are headed for financial disaster. If you have multiple credit cards, give them up and keep a maximum of two, with the highest credit limit. Avoid any fresh spends on your cards till dues are cleared. List all your debts, from highest to lowest, and clear them in that order.
3. Health is wealth – insure it
Being healthy and fit is the best gift to yourself and your family and dependents. Cut down on wasteful spending and eating/drinking, make actual use of that gym membership, get a complete health check-up done and make it a yearly habit.
Set aside money each month for an emergency fund worth 6-8 months of living expenses to see you and family through any medical emergency. Regardless of whether you are single or have a family, get a life and health insurance policy so that you/your next of kin don't suffer financially if something happens to you.
4. Documentation and nomination
Sounds boring, but it is a good idea to ensure your spouse/family is aware of your finances – not just investments and insurance, but also debts. Likewise, while opening a bank/demat/mutual fund account, not many pay attention to adding a nominee – or in case of a life insurance policy, updating beneficiary from parents to spouse. Documentation can be further split into financial/debt, health/life and legal (if applicable). Ensure it is easily accessible to next of kin in case something happens to you, so they are spared the running around and unnecessary paperwork.
5. Remember to have fun
Working 9 to 6 daily, five (or six) days a week can take a toll of your health and personal life. Make a conscious effort to set aside time for your family and friends. Plan mini-breaks every quarter and a full-fledged vacation once a year.
Do something that makes you happy, take up a new hobby, travel somewhere you've never been before – all these will
help you refocus and realign your goals and priorities.ians

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