Sanjib Saha
31 December 2022
Any New Year resolutions for 2023 yet? A few of our favorites:
1. If you are the CFO of your household, prepare the annual financial statements – the balance sheet, income/expense summary and cash-flow – and share with family.
2. If someone else manages your household finances, help the person to prepare and walk you through the annual household financial statements– the balance sheet, income/expense summary and cash-flow.
3. If you are new to investing, learn the basics of different asset classes – Stocks, Bonds, Cash, Hard/Real Assets and Alternatives – to ponder which ones might be appropriate for you (or not) and why.
4. Reflect on your short and long-term goals to match your assets and future income with your financial liabilities.
5. Find out if your overall investment portfolio is out-of-shape and resolve to get financially fit.
6. Spot and manage the various investment/financial risks that you’re exposed to.
7. If you are an active investor, benchmark your risk-adjusted investment returns against a comparable passive approach.
8. Reduce your investment expenses if they look exorbitant or unnecessary – the fund fees, management fees, taxes, trading costs and so on.
9. Create an automated plan to regularly save and invest for college education of your newborn.
10. Have an estate plan in place, especially if you have minor children or dependents.
11. Find just-in-time moments to share your investment knowledge with someone who might need it. For example, if someone you know is starting out new, explain the time-value of money and the benefits of early start in investments.
12. Get a trusted mentor or coach to help you learn about finance and investments.
We at Dollar Mentor wish you and your family a very Happy and Prosperous New Year 2023