The “Financial” New Year Resolution

We hear loads of news articles just around the calendar New Year highlighting people’s resolutions for the year. These are specially around exercise, smoking, quality time with family and the likes. Do we really care about the one thing that allows us to think about all this ? Money ?

Here, in India, the financial new year starts on the 1st of April every year and ends, obviously, on the 31st of March the following year. Why, you ask ? Just follow one calendar for dates as well as for the finances ? That’s for the government to answer. But that’s not the point of this post.

I want to propose that all of us make a “Financial” resolution for the year, or a Resolution for the financial year.

We assume that money is always around for us and does not need attention. But I believe financial health is as important as physical health.

Towards that, would you have been comfortable with a New Year resolution that asked you to sit down for a few minutes and review the list of things that you have eaten that week ? Just review and do nothing else ? I’m sure you wouldn’t have a problem making the resolution. Following it is something else.

I’m proposing a similar goal for your financial health. To start with, resolve that you will look at the bank statement/ credit card statement/ cash expenses every week and make sure you remember every transaction that you have done. Simple ?

What would this achieve ? It will bring discipline into your setup. If you can do it regularly, it will make you aware of the expenses you are making and also, in your subconscious, remind you of the numbers that are often missed when the transactions are purely electronic.

I’m going to try to not break this resolution, and if possible, do more as the year progresses.

What about you ?