New Year Resolutions

After a long vacation at vibeindia, I was planning to get back to my article on shares , but as this is the month for resolutions, lets devote this article to new year (financial :-) )resolutions, which will allow all of us to start afresh on our investing.

So, here are a few resolutions we can take :

1. I will enroll for a Pension Plan this Year, which will cost("save") me Rs. 834 per month. ( Take up just a Unit Linked Plan with Zero Insurance Cover. )

2. I will put Rs. 900/- every month on an ELSS which will allow me a Tax Rebate. ( You can wait on this, as on 28th Feb, perhaps FM may change the section 88 )

3. I will open a PPF account and make sure to put Rs. 2000/- per month in it.

4. I will read the annual reports of all the companies whose shares I currently own ( or plan to buy/sell ).

5. I will spend less than 25% of my salary on my Credit Card.

6. I will not take a personal loan at interest higher than my investments returns.

7. I will invest 2% of my annual in-hand salary on Books.


I know SEVEN is a big number to deal with. So lets make it easier for you. Select any 3 out of 7 and follow them - religiously. That will allow you to track your progress better too. These resolutions are not only for better investing but for our better living and yes, creating value for us in the future.

I am keeping it short as, after a vacation its difficult to write and advice :-). So, folks see you next week when we shall venture into STOCKS a bit more.

By the way this is the right time to be in the stock market... no..... not for making a quick buck, but for learning!!!!

Wish you a Happy Investing Year 2005!!!!

- jksherdiwala