Many people start New Year with a resolution. The resolution typically includes decision to quit smoking, exercising regularly etc. While these resolutions may be individual specific, there is one resolution which would apply to all income earning individuals, irrespective of level of income. This involves resolution related to financial planning and investment discipline. Here is a series of eleven important resolutions that an individual needs to make in the New Year:

1) Save regularly, invest regularly: Whatever be your level of income, ensure that you continue to save some amount every year. Once you create some amount of savings, take steps to invest it in the right instruments of savings

2) Diversify your portfolio: Do not put all the eggs in one basket, goes an old saying. Take steps to ensure that you continue to invest savings into different asset classes like equity, fixed deposit, gold etc.

3) Keep greed aside: Ensure that the greed does not dominate your investment decision. Investment driven by greed may cause huge financial losses.

4) Be driven by investment objectives: Set an investment objective when you make an investment decision. The investment objective can be quantified both in terms of expected return and time horizon. Monitor performance of investment vis-a-vis the investment objective.

5) Maintain Emotional discipline: Along with financial discipline, you must maintain emotional discipline. The markets may go up and down, however you should not get unnecessarily get perturbed by such market movements.

6) Don't follow herd mentality: Always remember,' What is sauce for goose is not sauce for gander'. Hence do not invest your money just because everybody is investing in a particular investment asset.

7) Try to beat inflation: In India inflation is very high and always runs in double digit. Merely by investing in secured investments, you cannot generate high rate of return. Hence look beyond PPF, NSC and bank deposits. It is required that you invest in equity, gold etc. which have capability to beat inflation.

8) Beware of so called financial advisors: India has more financial advisors, than the number of investors. Ensure that you approach a qualified financial advisor not just as agent who is keen on selling you a product that gives him highest commission.

9) Be an aware investor: Nobody can take care of your money in better way than you can. Keep on reading newspapers, magazines to update you. This will help you in becoming a better investor.

10) Spend less than what you earn: It is easier said than done. But you must attempt to do this. Even little bit of saving helps.

11) Do not be influenced by Business Channels: It is fashion to watch business channels and make investment decisions based on that. You should not get influenced by business channels. Use them only for the purpose of investment.

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