Imbibe, Implement, Ignore: Suggested New Year Resolutions for Investors

Published: January 2, 2018 at 9:57 am

Last Updated on

Here is a list of suggested New Year Resolutions for Investors based on three principles: imbibe the basis, implement it as soon as possible and ignore the noise. To me, personal finance is nothing more than common sense.  And common sense is nothing but mathematics expressed in a spoken language. Before I started the blog, I knew nothing about investor behaviour and aspects of behavioural finance.  It was irrelevant to me. Now I find myself learning about the different ways in which people handle their finances and how different ‘attitude towards money’ can be.

Please find below some of my findings listed in the form of New Year Resolutions for Investors

  1. I will list my financial goals first, plan a strategy and then worry about investments
  2. I will recognise the returns I need for my financial goals and invest accordingly.  I will not madly chase after returns.
  3. 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, and I, invest for my goals all through the year.
  4. I will not search for a ‘good pension plan’ or a ‘good child plan’, for I recognise they do not exist.
  5. I will not worry about my mutual fund holdings each time the market slumps.
  6. I will learn to analyse investments on my own …. using tools available at freefincal 😉
  7. I will not be swayed by posts/comments/news that predicts market movements, suggests stocks, gold, real estate, bonds, anything. I don’t give a rat’s fart.
  8. I will not ask for an opinion about an investment option and wait for someone to agree with me!
  9. I will not hold a lump sum in my SB account and wait for the next set of bonds or the next big investment opportunity.
  10. I will recognise that I can die anytime (even before I finish reading this post! Perhaps because of it!) and take a term insurance policy and write a will
  11. I will recognise that there are a million diseases that can make me sick anytime. If I rely only on my company health benefits and wait until I retire to get my own policy, I may not be able to get one.  So, off I go to get one for all my dependents right now!
  12. I will recognise the importance of inflation and stop obsessing about ‘regular income’.
  13. The Information Diet: How Less Information Can Make us More Informed: I resolve to streamline my personal financial life as quickly as possible so that I don’t have to read blogs, follow FB groups on money, watch TV shows, etc. anymore.
  14. I will understand what conflict of interest means and recognise how deep-rooted this is in the financial services. This will help me with resolution no. 13.
  15. In any case, I resolve to stop reading the one written by a pretentious idiot named ‘pattu’.

To me, that is the best way to becoming financial literate:

  • Imbibe the basis, asap
  • Implement the basis, asap
  • Ignore the noise, asap

I do hope you agree with this list. Would you like to add (or subtract) to this list?

Freefincal in 2018: What to expect and what would you like to see?

New Year Resolutions for Investors: eating healthy
Pic credit: Marco Verch
  1. This year, I would like to write more about health and living – if possible once a week. Would like to dedicate Friday to off-beat topics including health.
  2. I have some personal writing goals, a bit too early to disclose them. Let us hope for the best.
  3. Web-based calculators have been on my mind for a long time. In addition to the three freefincal android apps, would like to maybe learn some python and implement at least simple tools.

Regular freefincal readers would have seen how the content here has gradually evolved. There are two boundaries to push further: A: create simple content that many will appreciate and understand; B: Create unique content for the truly DIY investor

I need your help with both. Do let me know what content you would like to see in 2018. Questions that you have always had, questions that Google did not help with. The more unique the content, the more it would help me and others. Before you comment, please use the search bar and check if it has already been covered before.

Note: Posts like “review of XYZ product” bore me. They get a lot of traffic, but it is irresponsible blogging and I would prefer to do as little of that as possible.

Back from a holiday? The last week was pretty busy here. You may have missed these posts:

Ten years after the 2008 crash: the 1st market milestone of 2018

Join our 1500+ Facebook Group on Portfolio Management! Losing sleep over the market crash? Don't! You can now reduce fear, doubt and uncertainty while investing for your financial goals! Sign up for our lectures on goal-based portfolio management and join our exclusive Facebook Community. The 1st lecture is free! Did you miss out on the lockdown discount? You can still avail it! Follow instructions in the above link!

How to buy a personal accident insurance policy

Use Mutual Fund Star Ratings to understand how much you lose via commission

Why we all need a corpus for medical expenses and how to build it

Google spreadsheet portfolio tracker for stocks and mutual funds

Stats Trivia for 2017

Last year more 267 posts were published (considerably lower than 2016). I would like to decrease this further in 2018 – less is truly more.

More than 10 lakh people visited the site viewed the 1000+ posts here 2 million times. Thank you for your support.

Do share if you found this useful
Join our 1500+ Facebook Group on Portfolio Management! Losing sleep over the market crash? Don't! You can now reduce fear, doubt and uncertainty while investing for your financial goals! Sign up for our lectures on goal-based portfolio management and join our exclusive Facebook Community. The 1st lecture is free! Did you miss out on the lockdown discount? You can still avail it! Follow instructions in the above link!

Want to check if the market is overvalued or undervalued? Use our market valuation tool (will work with any index!)

About the Author

Pattabiraman editor freefincalM. Pattabiraman(PhD) is the founder, managing editor and primary author of freefincal. He is an associate professor at the Indian Institute of Technology, Madras. since Aug 2006. Connect with him via Twitter or Linkedin Pattabiraman has co-authored two print-books, You can be rich too with goal-based investing (CNBC TV18) and Gamechanger and seven other free e-books on various topics of money management. He is a patron and co-founder of “Fee-only India” an organisation to promote unbiased, commission-free investment advice.
He conducts free money management sessions for corporates and associations on the basis of money management. Previous engagements include World Bank, RBI, BHEL, Asian Paints, Cognizant, Madras Atomic Power Station, Honeywell, Tamil Nadu Investors Association. For speaking engagements write to pattu [at] freefincal [dot] com

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8 Comments

  1. Hi Pattu Sir, do you have a post or any other external link on how to practically go about writing/updating one’s will?

  2. Yes, great resolutions dear Pattu, except last one!! One needs to continue to read what Pattu writes even on non financial things to do things right!! Looking forward to your resolution on writing on non financial topics once a week, that’s great when nowadays we hear only on Bulls and bulls from market.!!

  3. Pattu,

    A very Happy and healthy new year to you and your family. Hope you are able to meet all your goals this year.
    Thank you for this wonderful service called freefincal. We the readers are truly blessed.

Comments are closed.