Good Money Habits
It's the right time for a financial plan. Most plans are made in extreme excitement — when you get a pay rise, or after reading a self-help book. Here are some tips that will help you stay the course all year round.
*Take baby steps.
The other day a colleague said, "I have decided to wake up at 6:30 am, starting tomorrow." But she usually woke up at 8:30 am. Two hours earlier is a difficult task. After a few days I asked her how she was progressing. Her disappointed smile said it all. If she had considered pushing the clock by 5 minutes every 10 days, she'd reach her 6:30 am goal in eight months. Get the idea? Now simply replace time with savings.
*Tell apart a plan and a habit.
We made plans with a conscious mind, and habits are formed so that eventually they are dealt with by our subconscious mind; and they stick. So don't be in a rush to invest (投资) your money. Go with a systematic investment plan (SIP) of a mutual fund or start a recurring deposit (RD). As human beings, we want to progress.
*Get your family's support.
If your daughter knows that she can only eat out one weekend a month because you are putting money away for a European trip in 2018, she will be much more cooperative and feel she is a part of the decision.
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Link your investment to a particular financial goal; your commitment to it will be stronger. A client decided to open an RD, but she seemed directionless about the investment. Once we suggested that she link it to her daughter's education fund, she immediately increased the amount she was investing. When you name your investment, the goal takes on a greater meaning.
A. Give your goal a meaning.
B. But soon the charm dies down, and so does the enthusiasm.
C. It's a good idea to involve your family in your financial plan.
D. Look at them as a promise to yourself, a promise that needs to be honored.
E. I suggested that she set her alarm for 5 minutes before her regular time.
F. If you know this well in advance, you are less likely to buy an expensive mobile phone on an urge.
G. Once a habit is formed, we want to move ahead and will most probably increase the investment amount without any encouragement.
