As another year slips away and we are all set to welcome a new one, it’s time for the age-old tradition of making New Year’s Resolutions. Among the many goals you might set, there’s one resolution that can really make a difference in your year and perhaps your life—creating a holistic personal finance plan!
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Studies have shown that prioritising health and managing wealth are among the top two resolutions when embracing the start of a new year.
After all, a New Year’s resolution is a blank slate, offering a chance to reconsider and redefine our goals, to grow a bit, and perhaps make some positive changes. The ultimate goal is overall well-being.
But the truth is, there can never be complete well-being without a solid financial plan!
This is why setting a personal finance goal should take centre stage in your New Year resolutions for 2024.
Establishing a clear financial goal will foster responsible money management and set the foundation for achieving broader life goals. It will help in achieving a secure and balanced life while impacting various aspects such as stress levels, future planning, and overall peace of mind.
But a goal without a plan is merely a wish.
You should make a solid personal financial plan. A solid financial plan has the power to organise every aspect of your life. It acts like a sturdy boat, guiding you through your journey towards holistic planning.
A solid financial plan helps you handle your money wisely. It’s a structured way to reach your financial goals, managing what you earn, spend, invest, and owe.
The plan helps you realistically prepare for future goals like retirement, your kids’ education, and buying a home. Plus, it keeps your spending and debt in check, making sure you live within your means. Including insurance and an emergency fund minimises risks.
Financial planning isn’t just about discipline; it’s about feeling confident about what lies ahead. Life changes, but a good plan adapts, keeping you ready. A personalised financial plan, tailored to your needs, lets you retire comfortably, leave a legacy, and enjoy financial stability.
“Where do I Begin?” Start With Understanding Your Financial Psychology
No matter how much we tell ourselves we make logical decisions, in the heart of our hearts, we’re all emotional beings. Many of our choices, especially about finance, are driven by our natural emotions, biases, and how our minds work. So basically, Psychology.
Psychology gently lingers behind our financial decisions, quietly shaping how we see and handle different parts of our financial journey.
Feelings like fear and excitement can push us to make quick decisions, while mental biases and social influences softly affect how we decide.
Hence, psychology becomes key to understanding our relationship with money.
Knowing your psychological connection with money is an important step in sorting out your personal finances. It gives you the power to make positive changes by pinpointing any patterns, habits, or beliefs that could be impacting your financial decisions.
“But How Can I Know My Relationship With Money”?
It would have been a complex task, but we have a breakthrough!
To simplify your understanding of your relationship with money, we’ve introduced a Patented psychological assessment called MoneySign®! An assessment designed to simplify the understanding of your financial personality.
MoneySign® is similar to a personality assessment, but instead of revealing general traits, it focuses on your relationship with money.
All you need to do is answer a set of simple but insightful questions about how you handle your finances. Each question has psychological reasoning. The answers you give to your questions determine your financial personality.
To clarify further, the creators of MoneySign® studied animals’ natural instincts and connected them to human traits in dealing with money. For instance, if you are highly ambitious about your money and you are always on the hunt for rewarding opportunities, you might have the financial instincts of a shark, and hence you might be classified as “The Stealthy Shark.”
This approach helps you grasp your financial behaviours on a deeper level.To create this, experts collaborated with experienced psychologists like Dr. Lokesh Gupta Dr. Anita Manglani and Mr. Hardik Singh Ahuja who possess extensive knowledge about human thought processes.
Knowing your MoneySign® can bring about fundamental changes in your approach to money. It can alter how you perceive investments, debts, and retirement planning.
Basics of Preparing a Personal Financial Plan in 2024
The new year offers the perfect chance to review your overall financial situation with fresh eyes.
Know Your Money Mindset:
Use the MoneySign Assessment to understand how you think about money. It helps you make smart choices that match your values.
Figure Out Your Life Stage:
Look at where you are in life – starting a career, raising a family, or planning for retirement. Your financial plan should match your current needs.
Sort Your Wants and Needs:
Separate what you want (extras) from what you need (essentials). This helps you spend wisely and stay financially secure.
Keep an Eye on the Economy:
Stay updated on economic news. Adjust your financial plan based on what’s happening in the wider economy to make better decisions.
In short, a focus on finances gives confidence, stability, and control over life. You dictate terms to money rather than money ruling you.
Being Holistic in 2024
Being holistic in 2024 means understanding that financial planning is much more than just investing. Investing is like one piece of a six-part puzzle. Financial planning extends beyond putting money in stocks or mutual funds.
A Holistic financial wellness plan includes:
- Cash Flow Planning
- Insurance Planning
- Liability Planning
- Investment Planning
- Tax Planning:
- Will & Estate Planning
A Journey Towards Financial Perfection Shouldn’t Be a Lonely One—Start With 1 Finance.
Starting your journey towards financial well-being doesn’t have to be a solo effort.
1 Finance is the home of holistic financial planning. It helps you understand your relationship with money with comprehensive guidance. It offers 100% unbiased advice, as it doesn’t manufacture any products. It has no vested interest in any company that sells financial products; the only vested interest it has is in your ‘peace of mind.’
The idea is to help you reach a state where your finances are so well-managed that your peace of mind remains unharmed.
How 1 Finance can help you reach peace of mind in 2024 and beyond?
1 Finance offers a holistic perspective that covers all aspects of your finances.
When you partner with 1 Finance you are teaming up with our Qualified Financial Advisors, in short, QFAs.
QFAs are our SEBI-Registered Investment Advisors who understand holistic financial planning which includes:
- Investment Planning
- Insurance Planning
- Liability Management
- Taxation Planning
- Emergency Planning
- Cash Flow Planning
- Retirement Planning
- Will and Estate Planning
These QFAs are focused on the best interests of their clients and strive to improve their financial wellness with unbiased advice and a zero-commission guarantee.
This approach is designed to be a transformative step for your financial well-being and, in turn, your overall well-being.
