''Hard work is like a staircase and luck is like a lift. Lift may fail but staircase is sure to take you to the top'' -- unknown

To be fearful when others are greedy, and be greedy when others are fearful -- warren Buffet

I am better investor because I am businessman,better businessman because I am no investor. -- Warren Buffet


A list of ‘must dos’ for the New Year

Resolutions are usually made only to be forgotten later. However, a few simple resolutions may help us manage our financial and social affairs well in the New Year. Here are a few tips to help you along the way. They are not exhaustive, nor are they inflexible

1. Check whether you are adequately insured:

Especially, if you are a professional or are earning your income with the help of your skill. The main source of income of a professional or an artisan is his skill which, alas, cannot be bequeathed.

Before buying insurance, check various products offered by insurance companies and find out which policy suits you best. Take help from a good insurance agent. Remember, you are buying insurance, not making an investment. There is a world of difference between the two. Also, there is no point in insuring small children, as one has more of an emotional interest rather than a financial interest in them.

If you have valuables in your house or office, insure them as well.

Based on your health status and family history, buy adequate medical insurance.

2. Make a budget of your income and expenditure:

Provide for all the installments that you are paying in respect of loans you’ve taken and propose to take during the year. Also, provide for contingencies such as medical emergencies. Make provisions for savings and investment, but do not forget to provide for children’s education, vacation and leisure, which are valuable investments with enormous social benefits. Ensure that your cash outflow does not exceed your income.

3. Be a little adventurous financially:

Think of engaging in new financial activities keeping your risk profile in mind. If you decide so, factor this in your budget by providing for enough contingency funds, so that you have a higher margin of safety.

While being adventurous, do not forget that there is a difference between enthusiasm and overenthusiasm. Dream, do not daydream. If your circumstances permit, engage in a little speculative activity on a recognised bourse, but in no case with borrowed funds.

4. Give a little:

Make some charity, for that is how we redeem our social obligations.
5. Make a will:

Especially, if you are above the age of 50 or are suffering from terminal illness.

6. Meet your statutory obligations:

Pay your income, sales, service and other taxes in time, for there is no escape from two things: taxes and death.

7. Entertain old friends and make new ones:

Friends will probably solve what finance cannot. Spend quality time with your family. Many good wishes for a happy New Year.

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