Time to reset financial goals
People all over the world are looking forward to welcoming 2022. And now is a great time to assess your financial goals and assess what is working and what is not working so you can have a better life in a busy time.
While making financial resolutions to improve your situation is a good practice at any time of the year, many find it easier to apply best practices at the start of a new year.
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Ala Ahmad, CEO of MetLife Bangladesh, said: “The pandemic has shown us the importance of managing health and financial well-being. Focus on these two priorities will continue to dominate many New Year’s resolutions.
For years to come, he would like to encourage people to think deeply about using financial protection tools like insurance.
While saving creates a great foundation for financial stability, it may not be enough to provide protection against unfortunate life events such as the death of a key income member, serious illness and accidents. By planning ahead with life insurance, one can enjoy the present while preserving the future financially.
Mr Kayser Hamid, Managing Director of Bangladesh Finance, says that if it is personal finance, he would like to initiate a systematic investment plan to maximize return.
“Along with this, I will invest my 30-40% savings in capital market products like mutual funds, initial public offering and fundamental stocks.
It will also invest some of it in a government savings certificate and term deposit receipt at a well-rated financial institution to cover the rate of inflation, which is rising.
Mohammed Monirul Moula, Managing Director of Islami Bank Bangladesh Ltd, says 2022 will have a different scenario than in previous years, so knowing the art of properly managing assets can present people with a smart lifestyle.
People are just recovering from the pandemic. Many of them had difficulty managing family expenses. They therefore need to be a little more calculating in order to manage personal assets and liabilities more intelligently.
They should separate their needs, wants and luxuries and shape their annual plan. Keeping a personal income and expense record can be helpful for smarter use of paycheck or monthly income.
People can set specific savings goals throughout the year. Avoiding debt or high interest loans can save a good deal of hard earned money. The loan must be compatible with the repayment capacity.
Large numbers of people lost their jobs during the Covid-19 pandemic.
“Thus, people can invest their surplus funds in labor-intensive sectors to generate more employment opportunities, maximize welfare and ensure the best use of money,” added Moula.
Hasan Haque, advisor to the LAR Center of Canada, says it’s always important to separate needs from wants in the success of a personal financial plan.
“The pursuit of Covid-19 and the rise of the omicron variant requires us to be very careful in separating the needs from the wants to tackle unexpected problems in 2022.”
A budget will help in this regard. Maybe it’s time for people to use expert personal financial advice on their income and expenses, assets and liabilities, and attitude towards risk, tolerance and capacity.
It is also time to analyze financial and personal information to know the strengths and weaknesses and develop an appropriate course of action.
You need to create a savings habit if you aren’t already into it. Start with as little as possible, but commit to saving regularly.
Better financial well-being begins with aligning spending with long-term values and goals. Make a conscious effort to use the money on the things that really matter and say goodbye to spending willy-nilly and the random discount offers and packages that show up on our doorstep.
We should spend on the things that bring happiness and bring us closer to our goals.
Finally, we should balance it so that the money we spend is what we earn and nothing more. This will prevent us from getting into debt or overspending.