Jan 1st is just another day, but we tend to think of it as a time for new beginnings. If you are looking to do a better job managing money, here are 17 personal financial resolutions and resources to consider for the new year.
In his 2013 Ted Talk, former Google search quality chief Matt Cutts talked about the power of trying something new for 30 days. He says if you try something new for 30 days or stop doing something for 30 days, it becomes a habit, and we are likely to stick to it. So the goal will any new year resolution should be to see it through at least Feb. Hopefully, it will become second nature then.
Money management should be holistic. How we save or invest is important, but our health and time management is more important.
Personal Finance Resolutions for 2022
- I will not be in a hurry to invest or save money – not before I protect my family with adequate life insurance, health insurance and an emergency fund. See: As a complete beginner, how do I get started with money management?
- I will reduce preferably stop eating all forms of sugar (white, brown, jaggery, honey etc.). Sugar is an addictive slow poison and can destroy your health. Sugar: The Bitter Truth
- I will eat fewer carbs. The SEBI multicap approach would work great for a diet. From 70-80% carbs, why not reduce to 25%?
- I will stop or at least reduce eating out – too much sugar; too much salt; What is good on your tongue is often terrible for your body. See: Warning, you could be the next diabetic! Simple steps to prevent, manage and even reverse diabetes.
- Ps. I have been on a low carb, no sugar diet for 4+ years and a low salt diet for about a year. I eat only veggies for lunch and dinner with milk and nuts for breakfast and afternoon snacks. I have also got ridden of caffeine over the last few months. The next step is to stop dairy. The benefits are multiple (weight loss without relapse; better fitness, cholesterol control, sugar control, reduced anxiety etc)
- Rain or shine I will exercise for one hour a day. I will also double this time to think about my life and to process diverse thoughts. Don’t touch that mobile or headphones! Also see: The art of doing nothing
- When I read a piece of information on investing, I will ask “who has written it?” and “what’s in it for them?” (conflict of interest). Better still, I will not consume personal finance information unless I have a need for it. See: The Information Diet: How Less Information Can Make us More Informed
- I will recognise the importance of inflation and stop obsessing about ‘regular income’ or pension. See: Inflation has reduced Rs. one lakh to just Rs. 6000 in 40 years!
- I will list my financial goals first, plan a strategy and then worry about investments. Get started here: Basics of portfolio construction: A guide for beginners
- I will recognise the returns I need for my financial goals and invest accordingly. I will not madly chase after returns.
- Trading will not make you rich unless you have a lot of money and time to invest. Young earners are better off trying to increase their income. You need money to make money!
- I will ensure all my tax planning is perfectly aligned with my goals. I do not care whether it is April or November; my tax planning depends only on my goals, for which I invest all through the year.
- I will not search for a ‘good pension plan’ or a ‘good child plan’. I recognise that a good plan is the only one I make based on a diversified portfolio. See: How to build the ideal retirement portfolio.
- I will not worry about my mutual fund holdings each time the market slumps. The secret to building wealth with equity is patience and consistent investing regardless of market conditions. See: Don’t make these mistakes while investing in mutual funds!
- I will not stop my investments because the market is at an all-time -high or wait for a dip. See: Why SIP or lump sum investing need not be stopped when markets hit all-time highs! And Myth Busted: Investing during market dips will result in more returns
- I will learn to analyse investments beyond returns in a goal-based manner. See: How to Conduct a Personal Financial Audit and Portfolio Audit 2021: How my goal-based investments fared this year.
- I will not be swayed by posts/comments/news that predicts market movements, suggests stocks, gold, real estate, bonds, anything. My investment plan is already in place, and I will stick to it.
- I will either be a true DIY investor – research information and take decisions myself or consult a SEBI registered fee-only financial advisor.
- Once my basic fortifications (insurance, emergency fund) and savings and investments are in place, I will only look at my portfolio once a year for a review. I will also “graduate” from reading/viewing personal finance content, particularly freefincal.com.
Happy investing in 2022!
🔥Enjoy massive discounts on our courses, robo-advisory tool and exclusive investor circle! 🔥& join our community of 7000+ users!
Use our Robo-advisory Tool for a start-to-finish financial plan! ⇐ More than 2,500 investors and advisors use this!
Track your mutual funds and stock investments with this Google Sheet!
We also publish monthly equity mutual funds, debt and hybrid mutual funds, index funds and ETF screeners and momentum, low-volatility stock screeners.
- Do you have a comment about the above article? Reach out to us on Twitter: @freefincal or @pattufreefincal
- Have a question? Subscribe to our newsletter using the form below.
- Hit 'reply' to any email from us! We do not offer personalized investment advice. We can write a detailed article without mentioning your name if you have a generic question.
Join 32,000+ readers and get free money management solutions delivered to your inbox! Subscribe to get posts via email! (Link takes you to our email sign-up form)
About The Author
Dr M. Pattabiraman(PhD) is the founder, managing editor and primary author of freefincal. He is an associate professor at the Indian Institute of Technology, Madras. He has over ten years of experience publishing news analysis, research and financial product development. Connect with him via Twitter(X), Linkedin, or YouTube. Pattabiraman has co-authored three print books: (1) You can be rich too with goal-based investing (CNBC TV18) for DIY investors. (2) Gamechanger for young earners. (3) Chinchu Gets a Superpower! for kids. He has also written seven other free e-books on various money management topics. He is a patron and co-founder of “Fee-only India,” an organisation promoting unbiased, commission-free investment advice.Our flagship course! Learn to manage your portfolio like a pro to achieve your goals regardless of market conditions! ⇐ More than 3,000 investors and advisors are part of our exclusive community! Get clarity on how to plan for your goals and achieve the necessary corpus no matter the market condition is!! Watch the first lecture for free! One-time payment! No recurring fees! Life-long access to videos! Reduce fear, uncertainty and doubt while investing! Learn how to plan for your goals before and after retirement with confidence.
Our new course! Increase your income by getting people to pay for your skills! ⇐ More than 700 salaried employees, entrepreneurs and financial advisors are part of our exclusive community! Learn how to get people to pay for your skills! Whether you are a professional or small business owner who wants more clients via online visibility or a salaried person wanting a side income or passive income, we will show you how to achieve this by showcasing your skills and building a community that trusts and pays you! (watch 1st lecture for free). One-time payment! No recurring fees! Life-long access to videos!
Our new book for kids: “Chinchu Gets a Superpower!” is now available!
Must-read book even for adults! This is something that every parent should teach their kids right from their young age. The importance of money management and decision making based on their wants and needs. Very nicely written in simple terms. - Arun.Buy the book: Chinchu gets a superpower for your child!
How to profit from content writing: Our new ebook is for those interested in getting side income via content writing. It is available at a 50% discount for Rs. 500 only!
Do you want to check if the market is overvalued or undervalued? Use our market valuation tool (it will work with any index!), or get the Tactical Buy/Sell timing tool!
We publish monthly mutual fund screeners and momentum, low-volatility stock screeners.
About freefincal & its content policy. Freefincal is a News Media Organization dedicated to providing original analysis, reports, reviews and insights on mutual funds, stocks, investing, retirement and personal finance developments. We do so without conflict of interest and bias. Follow us on Google News. Freefincal serves more than three million readers a year (5 million page views) with articles based only on factual information and detailed analysis by its authors. All statements made will be verified with credible and knowledgeable sources before publication. Freefincal does not publish paid articles, promotions, PR, satire or opinions without data. All opinions will be inferences backed by verifiable, reproducible evidence/data. Contact information: letters {at} freefincal {dot} com (sponsored posts or paid collaborations will not be entertained)
Connect with us on social media
- Twitter @freefincal
- Subscribe to our YouTube Videos
- Posts feed via Feedburner.
Our publications
You Can Be Rich Too with Goal-Based Investing
Published by CNBC TV18, this book is meant to help you ask the right questions and seek the correct answers, and since it comes with nine online calculators, you can also create custom solutions for your lifestyle! Get it now.Gamechanger: Forget Startups, Join Corporate & Still Live the Rich Life You Want
This book is meant for young earners to get their basics right from day one! It will also help you travel to exotic places at a low cost! Get it or gift it to a young earner.Your Ultimate Guide to Travel
This is an in-depth dive into vacation planning, finding cheap flights, budget accommodation, what to do when travelling, and how travelling slowly is better financially and psychologically, with links to the web pages and hand-holding at every step. Get the pdf for Rs 300 (instant download)