Setting Goals for 2024

Every new year we plan to set goals, however, within a few weeks we just go off track and in a couple of months we even forget the goals that were set for the year.

So how should we plan our goals so that we achieve them rather than just as a formality for the new year. Here are a few tips to make your goals achievable.

The key of achieving the goals is 4S: SPECIFIC, SCHEDULED, SYSTEMATIC and SHARE

Let's understand them in more detail:

1. Specific: Set a definite number of figures for your goal.

2. Scheduled: Set a time frame for it to be done, or else you will procrastinate.

3. Systematic: Make a proper plan to achieve it.

4. Share: Share your Specific goals with family and friends that will make you more accountable and they may also support and encourage you to achieve them.

 

Let’s take a few examples to make it clearer:

 

Objective	Normal Goal	Specific Planned Goal
To be Healthy	I will do exercise to become healthy	I will: Run On Monday Weights On Thursday Swim On Saturday Yoga on Sunday
Save More Money	I will reduce my expenses and save more Money	I will: Set auto transfer of 20% of my monthly salary to my investment account
Travel Overseas	I will go on foreign tours during the vacation	I will: Create a budget for foreign trips and make investments in that at least six months ahead
To be more Social	I will meet up with friends more often	I will: Keep Sunday morning free for breakfast with friends

 

Lastly, don't forget to enjoy the process. Goals are meant to enrich your life, not burden it. Celebrate your successes, learn from your challenges, and savor the satisfaction of progress. As you embark on this new year, may your goals be clear, your path be fulfilling, and your journey be filled with growth and joy.

2024 के लिए लक्ष्य

हर नए साल में हम लक्ष्य निर्धारित करने की योजना बनाते हैं, लेकिन कुछ ही हफ्तों में हम पटरी से उतर जाते हैं और कुछ महीनों में हम उन लक्ष्यों को भूल भी जाते हैं जो उस वर्ष के लिए निर्धारित किए गए थे।

तो हमें अपने लक्ष्यों की योजना कैसे बनानी चाहिए ताकि हम उन्हें हासिल कर सकें न कि सिर्फ नए साल की औपचारिकता बनकर रह जाएं। आपके लक्ष्यों को प्राप्त करने योग्य बनाने के लिए यहां कुछ युक्तियां दी गई हैं।

लक्ष्यों को प्राप्त करने की कुंजी 4S है: विशिष्ट, निर्धारित, व्यवस्थित और शेयर

आइए इन्हें और अधिक विस्तार से समझें।

1. विशिष्ट: अपने लक्ष्य के लिए एक निश्चित संख्या निर्धारित करें

2. निर्धारित: इसे पूरा करने के लिए एक समय सीमा निर्धारित करें, अन्यथा आप विलंब करेंगे

3. व्यवस्थित: इसे प्राप्त करने के लिए एक उचित योजना बनाएं

4. साझा करें: अपने विशिष्ट लक्ष्यों को परिवार और दोस्तों के साथ साझा करें जो आपको अधिक जवाबदेह बनाएगा और वे उन्हें प्राप्त करने के लिए आपका समर्थन और प्रोत्साहन भी कर सकते हैं।

 

आइए इसे स्पष्ट करने के लिए कुछ उदाहरण लें:

 

उद्देश्य	सामान्य लक्ष्य	विशिष्ट नियोजित लक्ष्य
स्वस्थ होना	मैं स्वस्थ रहने के लिए व्यायाम करूंगा	मैं करूँगा: सोमवार को टहलना गुरुवार को वजन शनिवार को तैरना रविवार को योग
अधिक पैसे बचाना	मैं अपने खर्चे कम करूंगा और अधिक पैसे बचाऊंगा	मैं करूँगा: मेरे मासिक वेतन का 20% मेरे निवेश खाते में स्वत: स्थानांतरण करूँगा
विदेश यात्रा	मैं विदेश में अपनी छुट्टियों का आनंद उठाऊंगा	मैं करूँगा: विदेश यात्राओं के लिए एक बजट बनाऊंगा और कम से कम छह महीने पहले उसमें निवेश करूंगा
अधिक सामाजिक बनना	मैं दोस्तों से अधिक बार मिलूंगा	मैं करूँगा: रविवार की सुबह दोस्तों के साथ नाश्ते के लिए तय रखूंगा

अंत में, लक्ष्य निर्धारित करने की प्रक्रिया का आनंद लेना न भूलें। लक्ष्य आपके जीवन को समृद्ध बनाने के लिए हैं, उस पर बोझ डालने के लिए नहीं। अपनी सफलताओं का जश्न मनाएं, अपनी चुनौतियों से सीखें और प्रगति की संतुष्टि का आनंद लें। जैसे ही आप इस नए साल की शुरुआत कर रहे हैं, मैं कामना करता हूं कि आपके लक्ष्य स्पष्ट हों, आपका मार्ग पूर्ण हो, और आपकी यात्रा विकास और आनंद से भरी हो।

How to stick to New Year’s Resolutions !!

Last year I have written an article on Resolution for 2018: Be Healthy & Wealthy.  Similarly many of us make resolutions every year, but as the time goes by motivation to stick with those resolutions weakens and after a couple of months we are back to our old life style.

So what should we do to keep them actually working?

Generally we make resolutions in terms of what we shall not do and end up thinking more about it and reinforcing the earlier habitual decision. On the other side we decide to do certain things in a particular way and make it so rigid that slipping up is the final outcome leading to disappointment.

We human’s understand the reward and punishment/ pain easily. We want rewards for our actions and dislikes the pain. Hence if a new actions do not result in pleasure or positive outcomes, we lose the interest.

So how should we make resolutions which are easy to implement and keep us motivated to continue with it? Let us take few example from the world of Personal Finance.

1. Can’t Control your Spending Spree, Let’s Try this!

To Control Spending we make a resolution to limit our use of credit card or EMIs for purchases. But it does not work as we try to restrict the things in our old habit. So let us change this by making a resolution to use Debit card instead of Credit card. This way we are creating new habit where we would be spending money which we already have in our Bank Account and as we spend our bank balance goes down, which means we see the immediate outcome of our expenses and have a limit only up to the money in our bank account. This could be more effective way to control our expenses.

2. Want to Save but don’t left with money at the end of the Month, Try this!

We all know saving is very important so as to have money for future requirements, and most of us want to save but by the end of the month when we check our bank account we find nothing is left to save. So how to change this habit. Let us change this habit by saving on the day we get our salary rather than waiting for last day of the month. Systematic Investment Plans or better known as SIPs are the best way wherein we can decide the date and amount to invest in and the money gets debited directly form the account. We can also target our savings to a specific goals and have a picture on mind that by this money we will get this particular thing, this will further motivate us to save more.

3. Want to upgrade with new things on EMIs, Try this!

We get attracted to new things in the market. New Smart TVs, Mobiles, New Cars and so on. Even though we may have brought it just last year we want to buy new with the new features. Companies market them in such a way that we just get carried away with their new features. Let’s us check whether we are using all the features of our current mobile rather than just running behind to buy a new one. Do we actually need that item with new feature? Here what is more important is to focus on what we already have and are we enjoying/utilising it fully so as to redirect our attention on using things effectively rather than acquiring them. We need to take time and enjoy the things which we already have rather than focussing on what we don’t have by this we may be able to redirect thinking on more positive way.

Saving is a decision where we deny our self the pleasures of spending. The money we save is set aside for an unknown future which can be used to enjoy something in the present. Our human brain cannot trade off the immediate joy for a distant good very easily. Many of us make a virtue of living for the present, to guise our inability to save. Investing is a long term activity that does not show up gains too soon to keep us motivated hence we need to make our savings more attractive and target oriented so that we have the reasons to save and not spend.  

Credit Cards!! Are they Good or Bad & How can we use it smartly!!

One of my friend has taken a credit card long time back. He got a good credit limit and as soon as he got the card he started using it freely: anywhere and everywhere for items which he may not have otherwise bought, without bothering how will he pay the bill which will come next month. When the bill came he realised that he cannot pay the entire amount in one go so he used the rollover (part payment) facility. By the time he actually cleared the full amount he realised that the total amount paid was almost double the amount of actual purchase. Finally he surrendered the credit card by cursing the credit card company.

Are credit card really so bad or dangerous? Well it’s the way we use a product determines the good or bad about it. Any particular thing could be good if used in limited way and can be very dangerous if used without limits/precautions. So how can we use credit cards so that it is good for our financial health and does not create any hazards? We would be discussing about it in this post, let’s understand it in details:

How To Use Your Credit Card Prudently…          

1.                We should know our limit:

All credit cards come with a ceiling limit. If we are a free spender we should choose a card with a low limit and moderately utilise the credit limit, say 30%-40% of our overall limit while keeping our repayment capacity in mind. 

2.               Clear entire dues on or before due date:

Credit card companies provide a free credit period, which means, if we make payments before the payment cycle ends and by the due date, No interest will be charged. However, if we do not make the payments within the due time, we are likely to pay interest which is usually as high as 36%-42% p.a., i.e. 3-3.5% on the outstanding amount due each month. Another important thing is when we don’t clear the dues on time the interest is charged from the date of purchase not from due date so the benefits which we get by the due dates are not available. Further the service tax/GST is also applicable on the interest amount.

3.               Better to avoid using grace period: 

Few credit card companies offer a grace period to settle your dues. Ideally, we shouldn’t wait this long to settle our credit card account. It is better to pay within the free credit period. As availing the grace period may dampen the credit score, and in turn, weaken our eligibility for loan proposals in the future. 

4.               Don’t get carried away by reward points & other benefits :

This is plain business, the credit card company will make money based on how much we use. That’s why they offer credit reward points and various other offers to make us use our credit card as much as possible. That’s a way they earn more revenue. Further in case we don’t make a payment in time, the interest charged turns out to be an additional benefits for them. So, one marketing strategy is to launch attractive reward-point systems that encourage people to spend more on a credit card. We should control impulsive purchases and keep the usage of plastic money under strict control.

5.               Secure the card details:

Now credit card frauds are very common things if we do not take proper precautions while using the cards. We should not store card details, while using the credit card to make online purchases, as they can be misused if the merchant site fails to protect the secrecy of your data. We should always use two-step authentication and don’t allow any ‘fast-forward’ transaction. 

Unless is “https://” on the payment page, don’t enter any payment/personal/card details. By viewing the site information, we can also check if the communication between you and the website is private and protected. Be careful when using at a merchant outlet as well. 

6.               Don’t withdraw cash by the credit card:

If we use credit card, even in an emergency, to withdraw money from an ATM, there is an exorbitant fees charged by credit card companies. We should maintain a contingency reserve, so that we do not require to use credit card to borrow cash. This is very important as it credit card company charges fees in case of cash withdrawal even if we pay by due dates.

Few other points to remember while opting for a credit card

• ·        If we are a spending freak, it is better that we use a debit card instead of a credit card—the first step to rationalise your expenditure pattern.
• ·        Revisit the lifestyle options if our credit card bills are major part of our monthly income. This is a sign that we are overspending.
• ·     We should not use another credit card to settle your old credit card dues called as balanced transfer—this is the beginning of a big debt trap that may haunt over a long time.
• ·    If we are unable to keep our expenses under control, perhaps it is time to take expert’s assistance.

Credit cards can be of great help if we are judicious. If we keep the above things in mind like not making only minimum payments, not paying the bills late and exceeding the credit limit, credit cards can be real handy. 

The lessons we can learn from the rich

The billionaires have specific habits which make them like that, we can learn few things from them to how become a billionaire and remain so.

1.   Smart Rich people live below their means

Most of the super-rich people do not splurge, or spend just to show-off. They choose modest houses, drive ordinary cars, and fly economy class. Warren Buffett still lives in the 5-bedroom house he purchased more than four decades ago for a mere $31,500. Mark Zuckerberg, founder and CEO of Facebook, drives a manual-transmission Volkswagen hatchback.

The learning

               i.        We shouldn’t buy a house on loan if we can't afford the EMI.

              ii.        EMI or rent of the house should not be more than 40%

            iii.        We shouldn’t spend more than 5% of our income on car loans.

            iv.        We shouldn’t stretch our finances to compete with others or just to show off.

2.   Smart Rich People save & invest first, spend later

There is a famous saying by legendry investor Warren Buffet “If you buy things you don't need, you will soon sell things you need,“.

Most smart rich people pay themselves first by saving and investing at least 20% of their income and spending the rest. Even if we are earning less, the disciplined saving habit will ensure a secure future and we won't have to struggle close in later part of our life. We should also make sure that we have an emergency corpus for rainy days.

The learning

               i.        We should automate our investing.

              ii.        We should ensure that our regular investments i.e. SIPs get invested as soon as we get our pay check.

            iii.        We should keep at least six months of monthly expenses for emergencies.

3.   They spend less on clothes, shoes, food

The smart rich people use their money on productive purposes. They don't usually run behind brands for designer clothes, shoes or accessories etc just for the sake of it. They spend on things that will keep them and their progeny rich in the future, not what will make them look rich in the present. This is the reason facebook;s   founder Mark Zuckerberg's in simple t-shirts or filmstar Rajnikanth is dressed in plain dhoti-kurta off screen.

The learning

               i.        We should control our expenses in those assets whose value is likely to go down only. Like clothes, accessories, cars etc.

              ii.        For example we shouldn’t spend more than 3-4% on clothes, 5-7% on vacations, and 10-12% on food.

            iii.        We should invest more in those assets which will increase our wealth, 3 They save & invest first, spend later.

4.   They look for discounts, coupons and ways to cut costs

Most of the smart rich people are smart spenders. They use discounts, sales, coupons, rewards or loyalty points to save money wherever they can. We should not forget small discounts add up to big money over time.

Whether it's US stars like Kristen Bell or Premji, who ensures his employees switch off lights in offices, they know how to cut costs.

The learning

               i.        We can use mobile apps like Paytm etc to pay bills or book tickets since they offer cash backs and discounts.

              ii.        Use discount sites and online price comparison sites to avail of discounts on various kind of purchases.

5.   Smart Rich people use credit cards wisely and limit their cash expenses

Sometimes if we have lot of cash in our pocket we indulge in buying unnecessary things.

Mostly the smart rich people don't carry too much cash. They also prefer to use credit cards wisely. There is debate whether plastic money makes us to spend more? This can be answered that prudent and disciplined use of credit card can be good rather than bad. We should repay the entire dues of the card in full and squeezing all benefits out of these.

The learning

               i.        Use credit cards wisely as this helps to keep better track of expenses.

              ii.        They offer free money in terms of rewards and benefits.

            iii.        It also creates a good credit history which helps to get loans at competitive rates when we actually need

            iv.        Now chip based cards also offer greater security from theft as compared to cash.

6.   They value quality over cost

There is a famous hindi saying “Sasta roye Barbar, Mahnga roye ek baar”.  It Means  a person who buys cheap things have to repent many times while the person who buys costly things have to repent only once. Here the costly thing does not mean costly by price but buy quality.

Smart rich people do not buy stuff because it's cheap, but because it's good quality that will last them longer. For example if we buy a cheaper home appliance, we may end up spending more on maintenance and repairs, or replacing it with a new item in a shorter interval.

The learning

               i.        We should conduct a cost-value comparison before buying a product.

              ii.        We should not buy something very expensive which is not going to be used for long and have very limited life clothes and expensive mobiles etc.

7.   They give back to society

Most of the rich people like Bill Gates, Warrant Buffet, Azim Premji have donated huge sums to charities and pledged their wealth for philanthropic purposes. Even common people also donate to the social wellbeing. However we should keep our net worth in mind while giving back to society and do not be over enthusiastic.

The learning

               i.        Before donating we should ensure our own financial well-being first.

              ii.        We should try to get tax benefits under Section 80G by donating to recognised institutions.

            iii.        This also ensures that money is used for the real benefits of the needy people

To become rich and remain so is also like a habit where we have to consciously make efforts to be careful with regard to our incomes and expenses. If we do it prudently we will remain rich forever.