New Year's Financial Resolutions to Make 2023 your Richest Year

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It's daunting to think that 2022 is coming to an end because it's that time of the year once again when people reflect on the year that has passed and make resolutions for the upcoming year. Depending on our life goals, many of us decide to live healthier lives, improve our routines, try reading, play a sport, etc.

However, not many people are inclined to make financial resolutions and ensure a financially secure future for themselves and their future generations. In the future, inflation or economic uncertainties might just be a barrier and we may not be able to attain our financial aims and goals. Thus, it becomes vital to assess your financial objectives and act accordingly. Your long-term life goals should be considered while developing your financial strategy. Better investment decisions are made by informed investors.

You must consider incorporating some investing resolutions into your plan as we all get ready for the new year and consider making some financial resolutions.

So, as we head towards 2023, let us have a look at the top few Financial Resolutions that everyone must consider:

Resolution 1: Do not let your money sit idle

When your money is stored in cash, its value is eroding with time. Also, inflationary pressures are on an all-time rise. So, if you do not put your money to work for you or invest it in instruments that give low returns, you may not be able to create a corpus of wealth.

So, start looking for alternatives that work in your favour instead of letting your money be kept in cash or your bank accounts.

Resolution 2: Start Investing

Investors no longer accept meagre profits; those times are long gone. Today, investors are equipped with a wide range of investment options like bonds, commodities, mutual funds, ETFs, equities etc. and if you have not begun investing, the right time to start is now.

There are many reasons why there is an increased interest in the stock market. This is mainly because long-term wealth creation is possible with the potential for higher yields.

Investing may not be the simplest task to do in terms of savings, regularly investing and frequently monitoring your portfolio but the returns from stock markets can be lucrative. Also, it is important to keep in mind the risks associated with investing. For example- market volatility, global economic conditions and other factors affecting the market (which in turn affect your investments)

Thus, one must always keep in mind the potential rewards and must consider investing in the stock market.

If you want to begin investing, open a Demat account today.

Resolution 3: Take Advantage of the Falling Market

Merely investing in the stock market is not important. Investing wisely is crucial to create wealth. For this, it is important to keep in mind that stock markets are unpredictable, thus it is crucial to profit from falling stocks.

The simplest approach to make money through the stock market is to purchase an asset at a discount and then subsequently sell it for a premium amount.

However, it is important to be cautious and not follow the herd mentality or hearsay opinions. Also, try to invest when the valuations are in favour of the investors so that you can maximise the returns from your investments.

If you are unable to keep track of your portfolio or note the fluctuations in the stock market, it is advised to take investment advisory services from a reputed service provider.

Resolution 4: Ensure Diversification

One of the most important factors that matter in investing wisely is to diversify your portfolio. We often tend to forget diversification and end up putting all our eggs in one basket.

Diversification means investing your money in different options so that you can mitigate the risks associated with any single financial instrument. Diversification will largely depend on your financial goals, capital and your risk appetite as an investor.

Resolution 5: Monitor your Portfolio Regularly

It is crucial to use the appropriate benchmarks to assess the performance of your portfolio at least twice a year. While monitoring, keep in mind that your long-term success is more important than your portfolio's short-term performance.

This will also help you perform a regular check about whether your investments are aligned with your financial goals or not and accordingly, you can make the requisite changes in your portfolio.

Resolution 6: Invest based on your Goals

Another important factor that you must consider this new year is to segregate your goals based on time horizon- short-term, medium-term and long-term. This will depend on the type of goal that you wish to attain.

For example- If your goal is to purchase real estate within a period of five years, you must consider it as a medium-term goal and decide to invest your hard-earned money accordingly. You must make a calculation of your investment amount (each year or at regular intervals) and assess how much sum will you have at the end of your fifth year.

If you feel that your time horizon is less and the goal amount is higher, you must make changes to your portfolio accordingly.

To conclude…

We are sure that if you make efforts, you will surely be able to keep up with your financial resolutions and create a financially secure future for yourself and your family.  As a basic step, you must consider investing in an appropriate health insurance to ensure the security of your family at all times. Next, you should also invest your money to beat inflationary pressures and create wealth from your investments.

Be careful and do not set unrealistic expectations from your investments. You must always remember that patience is key and accomplishing your financial goals will take time. Thus, preparing a checklist of your financial goals and timely investments as per your requirement is ideal.

mastertrust helps its clients to make the most of the exciting investment opportunities in the Indian market. Connect with us for stock market investments, investments in mutual funds, and other asset classes, and ensure a healthy wealth creation journey.

Let us discuss your financial goals and create a wealthy 2023 by smart investing!