Summary: Are there any limiting beliefs and habits that prevent you from prudently realising your financial potential? Anirudh Gupta shares seven practical financial tips to help you lead the most profitable and fulfilling new year.

The new year brings a sense of excitement and determination to achieve our goals. Financial wellbeing is a vital component of leading a fulfilling life. From my experience of interacting with numerous business owners and professionals across the spectrum, here are seven tips to improve your financial health in 2019.

1. Identify your thinking gaps

Many a times the problem is our past conditioning. Most of us have certain influences that impact our decisions, be it family, friends or the society we live in. Notions like, ‘money is the root of all evil’ may lead to blocks in your mind. This doesn’t help attract the resources you need to execute your dreams and fulfill your aspirations.

I suggest a simple exercise.

• Write down your beliefs about money.
• Once you have done that, you will be able to identify your limiting beliefs.
• The next step is to release any limiting beliefs by affirming: I release this belief and welcome abundance in my life.

This creates a foundation for financial success and releases all mental blocks. Remember, your success reflects your fundamental beliefs. With more resources, you can make a greater impact.

2. Think positive

We attract what we think. Many of us have heard the phrase ‘save for a rainy day’. Instead you could condition yourself to ‘save to grow’ or ‘save to splurge’, as rainy-day thinking will attract a rainy day, while a positive thought attracts positive circumstances.

3. Be financially disciplined

It is critical to separate business finances from personal finances as that helps to weather the ups and downs in business and life better. It helps to put on the hat of an investor and evaluate whether the business is doing a good job at generating sufficient and attractive returns and eliminates sentiments that might be causing financial misjudgments. It is critical to save at least 30% of personal income to ensure a worry-free life.

For instance, one of our clients keeps 80% of profits in the business and the rest is removed from the business. This helps him to live a balanced financial life. This ratio changes from business to business.

4. Leverage optimally

It is a VUCA (Volatile, Uncertain, Complex and Ambiguous) world. It is advisable not to take a high financial leverage at a personal level. A business which is great today may not be in good shape 18 months down the line, yet the business will be liable for interest and principal repayment. Therefore, it’s critical for business owners to be careful about the financial leverage (use of borrowed funds through loans). Being prudent is vital not only for survival, but also for success in the longer term.

5. Lend wisely

It is very common in business to lend to other businesses. It may not be a great decision always. One of my clients had lent a good amount to an associate. Despite the associate’s business doing well, the payments were behind time. Even new platforms like P2P (Peer to Peer lending) are risky and on account of delays of payment and lack of thorough regulation, some loss of capital can be experienced.

6. Make use of discount sales for key purchases

For key purchases like refurbishing your home or office, buying a car, travel or any other large expenditure, make use of discount sales and special offers. The cost saved can be at least 15-30%, if planned in a timely manner.

7. Maintain key records

It is critical that all key records are maintained in a proper manner. This ensures that one is in control of things. Key records include tax returns, investment reports, financial records, tracking loans etc.

Financial wellbeing is a journey. Make it a happy one!

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