A fat purse and a lean body are the most common New Year resolutions people make every single year.
Yet, these two will appear again in 2019, on many New year resolution lists globally. (On my list as well)
I am not sure about the lean body, but I certainly can share my 2 cents of wisdom on how to build a Fat purse?
4 easy New Year resolutions to boost your finances in 2019
Resolution 1 - to Set a Retirement Date, an exact date like - 31st December 2032
I meet at least 10 new people every week, and I ask all of them this one question "when do you want to retire?
I usually get one of the following answers;
- I am not sure
- The usual retirement age, 55-60
- I haven't thought of retirement yet
- I don't want to retire! ( Yes I do get this response)
In the last 7 years, I have not met even one person, who has decided an exact retirement date.
Forget the date, people have not even decided the year yet!
I wonder if we don't even know when and where we are going to retire, then how can we afford it?
Why should I decide the date in advance?
When you know the retirement date in advance, it will help you;
- Shortlist the potential countries and cities for retirement
- Plan what you will do after retirement?
- Ascertain how much you need to retire and the impact of inflation?
- Plan how to get there; (projecting pre and post Retirement cashflows)
- Determine your retirement hurdle rate. (Arrange a Free Retirement Planning Session with me to help you project your retirement cash flow and determine your hurdle rate)
We are no longer in the industrial age, where the organisations decide how, when, where and for how long we can work?
We are living in the information age, we now have more freedom to do things our way. One organisation or industry can no longer decide our career and our retirement.
So instead of letting things happen, let's take control and shape our retirement journey.
Decide well in 2019
Resolution 2 - Trail your money
It is almost effortless, just record instantly every expense you make on a smartphone app. (Don't give me this excuse-I don't use a smartphone)
You can use any expense tracker app which helps you classify your expenses into various categories and provides a detailed analysis of your expenses. I am using HomeBudget.
Sometimes you may forget to record the expense immediately, which is ok. When I started, I set up a reminder at 9.30 pm every day to remember and record all the expenses of the day.
Do this very diligently for at least three months.
Why Should I track expenses?
If you are not sure where your money goes or why and how you are spending, it is difficult to identify the habits you can change to reduce your expenses.
Keep tracking your expenses for at least three months don't lose focus. Once you have at least three months of expenses tracked, you will be surprised by the insights; they will provide you.
Use these insights to analyse your spending habits, revisit and review your budget. A positive change in your spending habits can keep your budget on track and improve your financial well-being.
Stay Focused, Keep Tracking...
Resolution 3 - Read and action at least one Personal Finance Book and blog in 2019
Warren Buffett reads for at least 5 hours a day and attributes his success to his reading habit, his ability to comprehend financial statements and his attention to detail.
Bill Gates reads 50 books a year, and Mark Zuckerberg reads at least one book every two weeks. I could go on with the list, but I guess you get the idea...
- 8 Steps to Financial Independence - Damodhar Mata - Free Ebook for UAE residents
- Think And Grow Rich - Napoleon Hill
- The Richest Man in Babylon - George S. Clason
- Rich Dad Poor Dad - By Robert Kiyosaki
- The Total Money Makeover: Classic Edition: A Proven Plan for Financial Fitness
- The Behavior Gap: Simple Ways to Stop Doing Dumb Things with Money
- Smart Money Smart Kids: Raising the Next Generation to Win with Money
Likewise, there are many good financial blogs to follow; you can choose one of the following;
- Financial Planning in Dubai - UAE focussed financial blog - Click here to follow
- Mr Money Moustache
- Get Rich Slowly
- Behavior Gap
Take action - Don't just Stop with reading
You can read as much as you want about swimming, you can even watch hundreds of videos on Youtube on how to swim, but until and unless you take action and jump into a pool to start practising the strokes, you will never be able to swim.
Likewise, reading the best book in the world on Wealth accumulation will be of no use, if you fail to take the necessary action.
Read more in 2019
Resolution 4 - Learn a new language or skill
I know this is not a financial goal, but learning a new language or skill in demand will increase your employability and income. In the testing times, we are currently in, it is crucial to upskill and if necessary reinvent our careers.
Six years ago, I started learning how to develop a website, write a blog and then I had to learn SEO and Social media marketing.
Now I am learning how to write a newsletter. This newsletter is my second, and I intend to keep this going...
My goal for 2019 is to learn Arabic. It has been almost 12 years since I came to Dubai, but I still cannot speak Arabic, it is indeed an embarrassment. So this year I will for sure learn to speak in Arabic.
Likewise, you have to identify that one skill which can increase your demand in the job market exponentially! It could be coding, social media, using LinkedIn effectively, Sales, Marketing, a new language or anything which can be of great value to your industry.
Research the latest trends in your industry, identify what skills the industry leaders have, and choose that one skill to add to your arsenal in 2019
Learn more in 2019!
While you may have many other vital goals to pursue in 2019, achieving these 4 goals can not only increase your income, they will also make you a better person overall.
So here is the resolutions list once again;
- Resolve to Set a Retirement Date - Decide well in 2019
- Resolve to trail your money - Stay Focused & Keep Tracking
- Resolve to read and action at least one Personal Finance Book and blog in 2019 - Read more in 2019
- Resolve to learn a new language or skill - Learn more in 2019
If you like what you read just now, don't just keep it for yourself, share it with your friends, family and colleagues. Create a community and encourage each other to achieve your goals in 2019. Click the icons on the left to share on your preferred respective social media account.
Wishing you a Merry Christmas and a Happy and Prosperous New Year.