Making Resolutions for 2007

This hits everyone at this time of the year - resolutions are made, and plans thought out for the new year. But how many of us have the feeling that by mid-Feb (or even earlier) the resolutions are long forgotten and we get back to the way we've been going about life pre-resolution.

Making a money or wealth resolution involves more than just putting down a financial-related statement, eg. "I am gonna save more money this year", or "I am going to start having an investment plan, soon".

Making a long term financial resolution involves a larger amount of planning than that. First of all, without specific targets, involving timeframes and amounts, one is likely to fail. Without specifics, there is also less likelihood of commitment to the resolution. In a way, the resolution is more like a plan.

So, if you're making a wealthbuilding resolution this new year, here are a couple of pointers you might wanna keep in mind.

Create an objective, such as what you want to do with the money you're planning to save or invest. Is the plan early retirement, or saving for a specific need?

Create a timeframe, and be specific. For example, I want to save $20K by the end of 2007.
Then go into the details, how much do you wanna save a month, or a week.

For more details, think and plan what you might wish to do with the money; do you put it entirely into equities, bonds, fixed deposits, or a combination. And in what proportions?

And what next after 2007?

The thing about long term wealth planning of this nature, is that it need not be done at the end of the year. However, at this time of the year when folks tend to make resolutions, it serves as a useful reminder.

Cheers!