Tuesday, December 30, 2008

Two Common New Year Resolutions: Finance and Fitness

The New Year is almost here, barely a few hours left for the grand celebration to begin. This is the time when people make a number of resolutions. However most of us fail to accomplish them and forget about it as the days pass by.

Now this year most of us are worried about the financial future after the major downfall of the finance market. So everybody might be thinking of improving their own financial condition in the coming year. Together with this, since nowadays people have become much more health conscious, the fitness factor will also be there at the corner of their minds too.

We all probably know that finance and fitness go hand in hand. Many research has also been done to prove the relationship between finance and fitness. A healthy and fit person is bound to be more productive - he will miss lesser days, work hard for longer period and make more money. Similarly, the other way round is very obvious. A financially stressed person will be suffering more from headaches, sleep disorders, ulcers and many more side effects, that would restrain him from performing to his capability.

However some of us are really bad at maintaining a balance with our expenses, we tend to spend much more than what we can afford. Creating a monthly budgeting plan would be a useful strategy in such cases which would as a result reduce some stress and help us to be mentally as well as physically fit. Try to save whatever you can, be it a very negligible part of your income. For example, instead of thinking to save say 30% of the income and fail to accomplish it, just save around say 4,5, or 6 percent. This would turn out to be quite a good amount in future.

By the way, I came across a very innovative and different way of representing financial fitness using mathematical formula. That was something like this:

Spend less + Extra Income - Debt * (Savings & Interest)/Monthly Budget

So, let this be your prime resolution for the coming year.

Happy New Year!

1 comment:

  1. The formula is grt...Besides,its a fact that money is a major factor in deciding a person's health..But most of the people overlook the financial planning part and it must be on the top of the priority list..To stay financially fit must be the top priority to stay healthy and successful..Its a recommended resolution for all.Happy New Year