The Most Authentic Guide on Personal Finance and Investments

Words of Wisdom : "The best way to teach your kids about taxes is by eating 30% of their ice cream." ~ Bill Murray

"New" Year. "Old" Resolutions. The Timeless Money Maxims.

World's greatest and richest investor, Warren Buffett has very rightly observed that "The pace of the earth’s movement around the sun, is not synchronized with the time required for either investment ideas or operating decisions to bear fruit."

In other words, our investment and personal finance decisions SHOULD NOT become hostage to calendars.

Calendars are anyway an artificial division of time. That is why there are so many different calendars... Hindu calendar, Chinese calendar, English calendar, Jewish calendar... and many more.

And, by Mayan Calendar we should have been dead in 2012 itself!

Numerous things in our life (including the life itself) are not dictated by dates. Professional success, marriage, children, health issues, stock market ups and downs, natural calamities, accidents, and even death... can happen on any day and at any time.

Therefore, I guess we have to reflect on our ‘obsession’ with dates.

This is true for our money matters and investments too.

-  Shares prices are volatile. They change every day. So, does it really matter what returns you earned on your equity investment, say "specifically" between Jan 1, 2015 to Dec 31, 2015?

-  Isn't it totally illogical to divide a company's performance into quarterly numbers?

-  Akshaya Tritiya, Dhanteras, Gudi Padwa / Ugadi, etc. are considered as auspicious days to buy gold. Yet, you would have lost money if bought gold on these days in the last few years.

-  In Chennai floods (and many such disasters), lakhs of people across ALL "rashis" and ALL "birth dates" have suffered huge losses.

In other words, let us not be unduly influenced by particular time, date or year.

Therefore, as we celebrate the "conventional" New Year "as per the English Calendar", let us not forget the timeless money principles.

They have, in the past, proven to be a grand success in growing our money exponentially. And, in future too, they would lead us to great wealth and prosperity.

My 'New Year' resolutions for 2016... and 2017... and 2018... and for infinity.

So, here are my 12 New Year 'Evergreen' Resolutions.

One. I will write my Will and complete all nomination formalities within the next 30 days. I don't want my loved ones to suffer in my absence.

Two. I will never buy Moneyback or Endowment insurance policies. Nor will I ever touch the Pension or Annuity plans.

Three. I will not invest directly into stocks. Instead, I will start SIPs (Systematic Investment Plan) in proven equity mutual funds only... and continue them forever (except for minor restructuring or portfolio re-balancing).

Four. I will never sell my investment in equity mutual funds; unless I really need money for some important goals.

Five. I will NOT buy gold jewellery as an investment. At best, I will "accumulate" gold (through Gold Bonds and Gold ETFs) for my children's wedding.

Six. With medical expenses becoming a serious financial threat, I will endeavour to maintain good health and take adequate health insurance cover.

Seven. I will spend "one" hour in a month to learn something new about my personal finances and add to my knowledge base.

Eight. I will never borrow money to splurge on luxuries and frivolous purchases. I will take loans for need-based and useful assets only.

Nine. I will only buy a 'reasonable' sized property, within a 'reasonable' budget, with 'reasonable' EMI payout.

Ten. Every month I will clear the payment due on my credit card, on or before the due date, without fail. I pledge not to carry forward any outstanding balance to future months.

Eleven. I will not be a copycat with my financial decisions and investments.

Twelve. I will not fall into the trap of false promises of super-normal returns. I will not become a victim of any fraudster.

These are my new year resolutions for 2016... and 2017... and 2018... and for infinity.

What about you?

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Ignorance is like a SIGNED BLANK CHEQUE... anyone can MISUSE it.

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