2018 is almost here and we already have a plethora of plans and
resolutions that we wish to accomplish. Considering that the New Year is the
most motivating time to start with some new decisions which can change our life
for the better, one excellent way to do it is by making some solid resolutions which
can help us to be healthy and wealthy the two most important part of life. We
can learn the good habits for healthy life and use them for a financial wealthy
life as well. Let’s chalked down the
good habits for a healthy life and how can we learn from them to also have a
wealthy life.
1.
Get up early in the Morning: Start Investing Early in Life
One very significant benefit of waking up early is reduced
stress level. When we rise early, it eliminates the need to rush in
the morning. We can then start your day on an optimistic note and such
positivity often stays with you throughout the day. Early risers
often go to bed early.
Similarly starting the investments early allows us to develop disciplined spending
habits by focusing on budget and cutting expenses when needed. It gives
more time to grow our investments and we get the amazing benefits due to power
of compounding. Let’s understand it by an example: Ram starts saving Rs. 5000/-
monthly at the age of 25 will get approx. 2.76 crs. At the age of 60. While
Shyam who starts saving Rs. 5000/- at the age of 35 will get only 94 lakhs when
he reached 60.
2. Have Balanced Diet: Diversify the
Assets
A well-balanced diet provides important vitamins, minerals, and nutrients to
keep the body and mind strong and healthy. Eating well can also help ward off numerous diseases and
health complications, as well as help maintain a healthy body weight,
provide energy, allow better sleep, and improve brain function.
Similarly we should diversify our capital across different investments
to reduce your overall investment risk. This strategy is designed to
help reduce the volatility of investment portfolio over time. For
example a single scheme of mutual fund invests in 20-30 stocks and provides the needed diversification
in a single investment.
3. Exercise Regularly: Invest
Regularly
Regular exercise helps us to Control Your Weight, reduce
the Risk of Cardiovascular Disease and Type 2 Diabetes and Metabolic Syndrome. It also helps in reducing certain type of Reduce
Cancers as well as it Strengthen our Bones and Muscles. Exercise also improves our
Mental Health and Mood.
Trying to pick the top or bottom of markets is notoriously difficult, by
making regular investments we can avoid timing the market. Regular investing
helps to ensure that we don’t miss out on the best gains. Regular investments also
helps to reduce the impact of periods of short-term volatility and gives our
money the time it needs to grow, as markets will generally increase over the
long term.
4. Drink enough Water: Have enough
Liquidity
One of the best things we should do after waking up in the morning is to drink at
least 500 ml of water. Water fires up our metabolism, hydrates and
helps our body to flush out toxins. It gives our brain fuel, Improves Skin Complexion, Boosts Immune System and
may even make us eat less.
Similarly we should have sufficient liquid assets. Liquid Assets are low-risk
investment which can be converted to cash quickly and easily with little or no
penalty. Examples of liquid assets are Treasury bills, savings accounts and
money-market/liquid mutual funds. Flexibility and accessibility are just two of
the ways liquid assets can help you stay ahead in the financial game. Liquidity
is important. In case of emergency It is a safety net for us and our family.
5. Have Enough Sleep: Have enough Risk
Cover
Adequate sleep is a key part of a healthy lifestyle, and can benefit our heart,
weight, mind, and more. Sleep makes us feel better, but its importance goes way
beyond just boosting mood or banishing under-eye circles. Sleep plays an
important role in our physical health. For example, sleep is involved in healing and repair of our heart and
blood vessels. Ongoing sleep deficiency is linked to an increased risk of heart disease,
kidney disease, high blood pressure, diabetes, and stroke.
We should always have proper risk cover to face the uncertainties of
life like health issues, loss of income, fire or theft at home etc. We should
take proper Health insurance, life cover and also insure our valuable assets
from the risks. By having proper risk cover we can have a much tension free
life without bothering much for the uncertainties of life and can take also
take some calculated risks in life.
6. Don’t diagnose yourself: Take
Professional Help for analysing
In this day and age of limited time with doctors coupled with ample
opportunity to google anything, the temptation for people to reach their own
conclusions about their illness is strong. When we self-diagnose, we are
essentially assuming that we know the subtleties that diagnosis constitutes.
This can be very dangerous, as people who assume that they can surmise what is
going on with themselves may miss the nuances of diagnosis. Another
danger of self-diagnosis is that we may think that there is more wrong with us
than there actually is. Then there is the fact that we can know and see
ourselves, but sometimes, we need a mirror to see ourselves more clearly. The
doctor is that mirror. To be fit and healthy we should always take
Doctor’s guidance to know the exact problem and the right solution to cure it.
Similarly a Financial advisor examines an individual’s financial
situation and health. He may pinpoint weak points that need strengthening. For
example, the advisor may alert you about wasteful expenditure. He may identify
investments that are not giving optimal returns. With the help of the advisor, we
can chart out our financial goals–even the improbable and ambitious ones. The
advisor can then help you create a plan to achieve these targets. He may
suggest that you split your goals into short-term, medium-term, and long-term
goals. This allows for better financial management. The advisor can recommend
products to help you reach your goals faster. In this, the advisor would assess
the risk profile, personality, and financial responsibilities. He would also
explain the product features and suggest how to make the investments.
Managing your personal finances is not rocket science. People have been
doing it for years with success. But it is all a matter of trial and
experience. Choosing the right financial advisor is crucial to the success of
any financial plan.
7. Periodic Reports & Regular
visits to Doctor: Periodic review & regular interaction with advisor
Our health is our greatest treasure. Taking care of our health is utmost
important. But in our daily life, we keep on looking for excuses to not visit
our doctor. Be it for saving money or for other reasons like ‘I am too young
and healthy to go to a doc’, ‘I don’t have time today; may be next week, I’ll
get an appointment…”, we keep on ignoring our health. We ignore the fact that
performing regular health check –ups from young age can actually reduce the
risk of occurrence of several health issues in future.
Similarly we should have regular interaction with our financial advisor.
Given the ever changing economic landscape, it is prudent to keep in touch with
your financial advisor at least once in six months. This communication can take
the form of a telephone call, an e-mail, text or meeting to discuss our current
financial situation and any changes in our goals and needs. It is also
important to have a face-to-face meeting at least once a year, or upon the
event of any major significant changes in our or family’s life such as birth,
marriage, divorce, death, inheritance, sale of house, purchase of house, change
of job, loss of job, illness, pending retirement, or reaching Medicare age etc.
Topics of discussion could include subjects such as tax situation, financial
evaluation and estate planning, structure of portfolio, total assets, current
and future growth or earnings, non-market related assets such as a private
company or real estate.
7. Have qualified family Doctor: Have
qualified & Certified Financial Planner
We should have a good doctor who is learned, honest, kind,
humble, enthusiastic, optimistic, and efficient. He or she inspires total
confidence in patients and develop a good relationship that by itself
constitutes good treatment for any kind of ailment and the best starting point
for confronting all causes of pain and suffering.
Similarly we should have a good and well qualified Financial
Advisor who understand our requirements and also qualified to advise to client’s
best interest in mind and can help in sorting out the income, expenses, needs,
wants and financial ambitions as required for a person and his family.
If we follow these basic principles in life we may stay
healthy & wealthy and live life peacefully.
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