Dec 31, 2010

New Year Resolution for 2011: Change of Strategy


“Why are you drinking?” demanded the little prince.
“So that I may forget,” replied the tippler.
“Forget what?” inquired the little prince, who already felt sorry for him.
“Forget that I am ashamed,” the tippler confessed, hanging his head.
“Ashamed of what?” insisted the little prince, who wanted to help him.
“Ashamed of drinking!”


_Quote from The Little Prince by Antoine de Saint-Exupéry


This is the time of the year when we analyse our achievements and failures and based upon that we resolve to make course corrections, shed some bad habits and adopt some good ones. However, this year I’ve decided not to make any more resolutions till I fulfill the resolutions made last year.

Instead of making new resolutions, why not change the strategy; do some critical thinking and self-reflection. Here’s a list of questions for anybody who is interested in taking charge of life and leading a fulfilled and meaningful life using the money as a tool…let’s start the year 2011 with some soul searching and
asking the following questions:

1. Why am I working? If for money, then how much? Is it to make both ends meet or to become rich? Do I have a figure in mind? Ok, if I get the money I’m looking for, will I stop working?

2. How long do I plan to work? Am I saving or have I saved enough for my retirement? What’s my retirement number?

3. What if I die right now? What will happen to my family? Have I left enough for my family? If yes, then have I made proper arrangement for the distribution of my wealth? If no, do I have adequate life insurance coverage?

4. What will happen if I meet with an accident today and become permanently incapacitated to work?

5. How do I manage my money? Do I budget my spending? Do I save and spend consciously? What is my current savings rate?

6. How and where do I invest my money? Do I go by asset allocation model or adopt an ad-hoc approach? Do I know the relationship between risk and returns? Do I know the difference between life insurance and investment?

7. Do I waste resources be it food, water, electricity, petrol, paper, pencil, soap, clothes or anything else? Am I aware that all my actions have direct and indirect impact on the environment and ultimately going to affect future generations?

8. What is my current self worth and net worth? Where do I stand today spiritually and financially?



And Finally,

9. Where am I going? What exactly do I expect from my life? Am I leading the life I want to? Am I enjoying my life or postponing my happiness to a future date? What if I die within next 24 hours? Is there anything which I have been planning to do for long but didn’t? Other than working, what other interest do I have?


However, a word of caution: you cannot answer all of them in one sitting; answers won’t come easy and they shouldn’t; will require a lot of deep contemplation and also some number crunching.

Finally, here’s the resolution for 2011 in a single sentence:

“To acquire financial and spiritual wisdom”

For those who are really desirous to gain the wisdom, Fisher promises to lend all possible help in this acquisition process.

Happy New Year!


Also see:

1. Surviving in a corporate jungle
2. How to Simplify your life
3. Hidden Flaws of Spending #2

8 comments:

  1. Well put Mr.Fisher! Wish you a happy new year!

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  2. Thought provoking post. Somanadha Sarma

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  3. Hi, Wish you a great year ahead. May we all acquire financial and spiritual wisdom in 2011.

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  4. Wish u a peaceful new year fisher. you always post out of mind thoughts which we know somewhere in mind but never think about it. Keep it up.
    jatin ahuja

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  5. Excellent post and prodding in the new year. Thanks Fisher. You are my best online financial friend. Would await regular updates from you throughout this year.

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  6. Well said . Happy New Year Sir

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  7. Hi Fisher
    Are you really going to fulfill you're 2010 resolutions prior attempting 2011? I would say one of my resolutions for 2011 would be to continue acquiring financial wisdom - from you're blog especially. I guess there'll never be an end to that will there?

    As for spiritual wisdom...what is that? Everybody has his interpretation/perception on it...
    All the best for 2011...
    regards,
    Hari

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  8. Hi Fisher
    Question No. 7 is especially poignant and will unfortunately become more and more relevant as the years go by. The past few decades have seen unprecedented exploitation of this planet, rapid species extinctions & by the end of 2011,we (humans) are likely to be 7 billion strong and increasing at a never before pace.

    regards,

    Hari

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