As we have entered the year 2016, our inner conscience prompts us to ponder upon the reforms that we would like to see in the coming year. For many, this means getting their finances on track once and for all.
As per our analysis, approximately 40% of people look forward to a better financial life and prioritize savings and investments over other things in New Year.
Popular Financial New Year’s Resolutions
Money-related resolutions are common and most of the people have resolutions like “I would start saving for my new home”, “I would double my SIP amount and so on”. But, only a handful of people are able to accomplish this task. Who’s to blame for this? These days, finances have become the heart rather than a part of life.
With financial markets underperforming, the salaried professionals are left with a very few options other than cutting down their expenses to save for their future. It is a bitter truth that curbing your spending habits frames the base for savings and investments.
Let us briefly look at the financial resolutions people take on New Year.
Financial Resolutions by Age
A very interesting fact to look at is, people who are aged about 50-55 are particular about curbing down their expenses which is obvious because they are nearing to their retiring age and they must accustom themselves to a fixed-income lifestyle. While young people in the age bracket of 18-25 are more likely to be interested in savings for targets like a new gadget or a new motorbike, professionals aged around 26- 35 would be more keen to make savings for investment purpose or to acquire immovable assets like a house. Irrespective of their financial objectives.
Financial Resolutions based on region
India is a country with uneven geographical distribution. Hence, the business and employment opportunities vary from region to region. While states in western India like Maharashtra, Gujarat have the lion’s share in trade and commerce, states in eastern India are still in the development phase. The savings rate in the rich states seems to be higher, which could be understandable given higher salary brackets, higher cost of living etc. Therefore, people in the low salary brackets have a limited scope when it comes to take a financial resolution.
Saving Money Continues to Be Top Resolution
So why people make resolutions to save more during New Year? The answer is directly co-related to the economic scenario of the country. Past 3-4 years have not been that good for salaried professionals because of global financial turmoil. They have comprehended that if there is a heyday today, tomorrow they might witness nadir too. This has given rise to savings and the best part is, people are now saving on long term objectives rather than short term goals such as high value gadgets, cars, jewelry or other expensive products.
More and more people have become particular about their savings but it has to be repeated that savings do require a strict discipline that an individual has to follow in order to achieve sound financial health. We know it’s a bit tough in the beginning but gradually it would be instilled in your daily habits. To make things easier for you at the initial stage, you can take help of expense management mobile apps that come at no cost. These apps provide you with statistics of your expenditure pattern that would help you to know the pain areas. One such app is Gullak that has won the heart of millions when it comes to expense management. This money manager app has already about 1 million of downloads and is considered to a relevant tool for individuals who are keen to save more money.