Tuesday, December 18, 2012

New Year Resolutions

I was reading the interview with CEO of a well known stock brokerage firm. This firm is in business from 1980s. I was wondering how much money these people, staff and management of these kind of companies, would have made out of share market. In 1980s people were not much aware of the stock market. I wish I invested some money in the equity market in the initial years of my career. But, I was fully unaware of these things on those days. But these people are lucky, they have been working in equity business from 1980s.

But I was surprised when this CEO told the interviewer that he is not in the habit of investing in equity market. He even started purchasing mutual funds from last year only. I thought it is like some old small restaurant owners. They cook for the community, but never have food from their own shops. Their lunch was brought from their home. Is it like that? This CEO advises all people to invest in shares, but never invests by himself.

But this news relieved me. I am not only person, who is not practicing what he preaches. Yes, I am not practicing many things I write in this blog. Shocked? But, I started thinking about money just two years ago, and I promise you in next two years, my finance will be better managed. I am on my way.

Then what I need to improve? I think about it, as the new year is around the corner. Yes, it is time for new year resolutions. Usually, I don't believe in new year resolutions. If I find some thing is bad, I will stop it immediately. Similarly, if I find some thing is good, I will start immediately. I will not wait for a new year to stop or start new things.

Still, I think what I can improve in the new year, financially. These will be my new year resolutions. Not in any particular order.
  • I will setup enough emergency fund, just in case any thing goes unexpected.
  • I will get enough insurance coverage.
  • I will get enough medical insurance for me and my family.
  • I will stop using my credit card.
  • I will start tax planning from the start of the year.
  • I will reduce my monthly expenses, so that expenses are well below earnings.
  • I will start goal based investments. Now I have only one goal for my investments, get rich.
  • I will diversify my portfolio by including some of the areas, where I do not invest. 
  • Work hard, improve my competency at work, and do some apple polishing to my manager.
Enough? You can pick up any from these for your own new year resolutions.  New year is, of course, a great time for a new start.

Happy New Year!

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