Dear Patrons,
The world witnessed quite a roller-coaster ride in the last couple of years with the pandemic followed by the Ukraine War, which led to inflationary pressures mainly due to supply chain disruptions, excessive liquidity, and the associated crises, impacting people’s lives in more ways than one, including crashing down of their financial health.
These crises highlighted a few critical aspects of personal finance, which now need an urgent eye. While the right asset allocation was forgotten by the investors, thanks to the volatile financial market, the right review of the financial health has now become the need of the hour.
The learning from 2021-22 has made it critical for the investors to not link their financial health to short-long term goals, and instead make them long-term priorities. As we enter 2023, it is critical to strive for good financial health keeping in mind some learnings from the year that’s gone by:
1. Chase your goals, not returns
While we love to focus on the returns – how soon and how much – what we don’t realise is that the returns are directly linked to our goals. To be able to get clarity on the returns, we need to be first clear on our goals which can be long-term, medium, or short-term, which ultimately determines the choice of the product we invest in. Therefore, it is absolutely essential for us to be clear about our goals before making any decisions.
2. Discipline in financial behaviour
Once we get clarity on our goals, we must become disciplined in our decisions. Erratic withdrawal, erratic investment, and instant gratification or quick returns are all ingredients of disaster, and must be avoided under all circumstances. A disciplined approach to our financial journey is the best way to maintain a good financial health.
3. Budget your expenses
It is also important to predict the expenses so they can be budgeted right from the word go. Factor-in all the coverages that protect not only your life but also your finances right from the beginning. Once you prioritise and budget your expenses, the journey becomes smooth.
4. Risks are lucrative, and fatal too
Remember, there are no shortcuts to success, nor are there any shortcuts to becoming rich overnight. Risky terrains lure, but can be fatal too! The right approach to good financial health is to avoid risks as much as possible. After all, patience always pays!
5. Right coverage through the right plans
From the numerous term and health plans offered by various insurance companies, be wise enough to decide the right-fit plan for yourself that meets all life’s exigencies. It’s important to know the most adequately covered plans so as you don’t eat away your capital in any dire situation. Expand your knowledge and have a holistic view of the plan before taking the final plunge.
In 2023, we'll be engaging with you through our Newsletters and Social Media handles to remind you that a disciplined approach is the key to success, especially when it comes to maintaining good financial health. For more insights into various aspects of personal finance, subscribe and follow our social media handles - Facebook, Instagram and LinkedIn.
Wishing you, and all your loved ones, a happy, prosperous and a healthy 2023.
Regards,
Sandeep Nanda,
Managing Director,
Security Investments