2011 MAY NOT AS REWARDING FINANCIALLY AS LAST YEAR

The new year has brought lots of hope for everybody. Yet it most market specialists predicted a dormant year for the investor.Should middle class invest or not? It is a big question and we must address the issue with lot of foresight. According to me none should invest this year if they are investing only for two to three years. in case they ar prepared to keep the money aside for at least five years it would be good year to carry out investment programme through systematic investment plan. Although making resolutions to improve your financial situation is a good thing to do at any time of year, many people find it easier at the beginning of a new year. Regardless of when you begin, the basics remain the same. So, let us resolve during the first week of the year that we need to plan for personal financial goal to secure a great future! Though the year 2009 provided very good return on investment and 2010 provided somewhat good return beaware the current year may not as rewarding. Yet we should not stop saving and investment and plan for better tomorrow. The new year has brought lots of hope for everybody. Yet it most market specialists predicted a dormant year for the investor.Should middle class invest or not? It is a big question and we must address the issue with lot of foresight. According to me none should invest this year if they are investing only for two to three years. in case they ar prepared to keep the money aside for at least five years it would be good year to carry out investment programme through systematic investment plan



Make sure you know what your job is worth in the market place. No matter how much or how little you earn, you'll never get ahead if you spend more than you earn. Often it's easier to spend less than it is to earn more, and a little cost-cutting effort in a number of areas can result in big savings. It doesn't always have to involve making big sacrifices. Have you ever thought of how you want to be financially placed in the coming year and not repeat your mistakes? Would you like to be free from debt and still fulfill your goals and dreams? This New Year, resolve to be financially planned and independent, to avoid making the same mistakes you made last year.

According to me, the most important resolve should be to plan for a budget. You need to know how much you are earning and where your Money is going. Unless you budget you would not know where money is going. How can you set spending and saving unless you budget? The most important resolve needs to be to stick to the budget. Keep it in mind not to spend more than you earn in a month. Even do not take a loan to build your house f you have to struggle to pay the Equated Monthly Installment. Spending does not mean only monthly expenses for the family. It includes saving for your retirement, building your own house, own and children’s marriage expenses, education of your children, insurance for security of the family, occasional holiday break, medical care for parents and occasional charity for peace of mind.



The second most important resolve for the year should be to clean the debt. The Credit card debt is the number one obstacle to getting ahead financially. Those little pieces of plastic are so easy to use, and it's so easy to forget that it's real money we're dealing with when we whip them out to pay for a purchase, large or small. Despite our good resolves to pay the balance off quickly, the reality is that we often don't, and end up paying far more for things than we would have paid if we had used cash. Pay the full amount immediately and do not pay in instilments. It is hugely expensive.

If you are a self employed , doctor, advocate or artist, think of a retirement plan. If your are an employee like journalist, private sector employee and have no retirement plan subscribe to NPS or Retirement of Insurance company or Mutual funds. If you're already contributing, try to increase your contribution from 10% to 20%. If your employer doesn't offer a retirement plan, consider NPS, pension plus of L:IC or Templeton pension plan. These are great product.

You've heard it before: Pay yourself first! Before you think of your children’s higher education think of yourself. If you wait until you've met all your other financial obligations before seeing what's left over for saving, chances are you'll never have a healthy savings account or investments. Resolve to set aside a minimum of 5% to 10% of your salary for savings BEFORE you start paying your bills. Better yet, have money automatically deducted from your paycheck and deposited into a separate account. Resolve to invest in tax saving instruments first like PPF, life insurance, NSC and pension funds to maximize your earnings.

If you have a family to support life insurance is a must. If you have none do it this year .To economize your expenses take a term insurance combined with pension plan That would be cost effective now. All self employed persons including traders, contractors and doctors must have Health insurance plan, during the year. Do not ignore illness may strike without notice.

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Have you written a will? The 90% people of Northeast India don't have a will. If you have dependents, no matter how little or how much you own, you need a will. If your situation isn't too complicated you can even do your own with software like WillMaker from Nolo Press. Protect your loved ones. Write a will. Think of your spouse first even before considering children.

Make financial planning a priority and understand the importance of the same. This will be the first step that will pave the way for you to achieve goals that you and your partner plan to fulfil. Not every want is a need. Distinguish between the two and accordingly plan your finances. A need is a necessity; something that you cannot do without, everything else is a desire or want. If you set out to fulfill every want you have, you will find yourself in a dilemma, as you then won't be able to satisfy the goals and dreams that will make you happy.
Involve your family and children in financial planning. Teach your children the importance of money and planning, as this will lead to greater financial responsibility for them in the future. Discuss and debate your financial goals with your spouse for the coming year as this will help ma king a cohesive plan that will help attaining family goals. Consult a financial planner to begin the process with the entire family.

Be frugal when it comes to spending. You don't always have to buy expensive things all the time. Usually, there is an alternative. Avoid the debt trap. Often, we take loans to finance that big dream house or car without considering the impact of the loan on regular finances. If the burden of the loan becomes too large, you cannot enjoy your life at all, since you will be using your money to only pay off debts/loans.

The path to your financial freedom lies in your hands. So, this New Year, create your own freedom; from the daily hassles of planning your money and watch yourself fulfill your dreams and desires! Remember, failing to plan is planning to fail.

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