EXECUTIVE SUMMARY: Good financial habits are always required to achieve financial goals in life. Whether you are new to investment or expert in this field, without discipline one cannot think of achieving success in financial life. In this article we have discussed few financial habits like setting up realistic goals, reviewing portfolio, buying adequate life and health cover, etc. which one can adopt from the beginning of 2016 and witness a change in financial life.
1. Will set up realistic goals and start goal based investments:
Consider a casual traveller who has been travelling along the country without any point of destination. If one asks this traveller as to where he wants to go he would be reluctant to answer that question. There would definitely be a resistance in the clarity. Hence realistic goals are those
points of destination which automatically gives one a roadmap to reach them. Therefore, successful investors are always aware of where they are going. Investors, who lack clarity in articulating goals, tend to dabble in various investment options and then hope that they will find something that works. However, once realistic goals are set it becomes easy to choose investment options and act upon it. The only idea of planning them down is to create a resource pool and put in one’s hard earned savings into the right kind of investment options.
2. I will buy/increase health cover
In current times of high medical inflation rates, falling to hold adequate health insurance cover may prove to be major financial disaster. This could lead to poor health care of an individual as one may not be able to afford the high medical bills. Normally it is said that when health insurance is not needed, it is better to buy it that time. However, in reality people buy health cover when they fall into some serious medical trouble. So if one is still single then he/she should look at buying individual policy or If one has got married or if a child is born recently, then it is better to get a family cover which may be a little more expensive than one’s own health cover, but collectively it can be cost-efficient. Increasing ones health cover can also be looked upon in the New Year.
3. I will buy term insurance or Review Term Insurance Requirement:
It’s a type of life insurance which provides coverage for a certain period of time. If the insured dies over the policy tenure, death benefit is paid out to the nominee and no pay out is made if the insured survives the tenure. Term plans are more affordable than other options because an individual can get higher cover for the lower amount of premium. Hence, buying term insurance becomes a good protector of one’s family or a dependent spouse during the death of the earning member. They would not be drastically affected by the financial crisis that may happen due to stoppage of income. So calculate your requirement and buy one which suits you. Also, if you already have one and if there is an increase in your requirement then lookout for the increment in the cover.
Good financial habits are always required to achieve financial goals in life. Whether you are new to investment or expert in this field, without discipline one cannot think of achieving success in financial life.
These are some of the financial habits that once adopted; goals become easy, financial distress tends to vanish and one can achieve what one wants. It becomes easy when it is started; however the initiative is the only question. So what are the habits you following?