All of us faced challenges in 2020 for different reasons—some for the work part being affected; some for having more work to do; some for lack of a schedule; and some for growth not taking off as expected.

Well, our reasons may be different, but then we need to look at a new tomorrow and see how to rebuild a future. Before we plan financially, we need to be aware of what constitutes success. When we become aware of this, then the journey becomes more fruitful.

Let us begin to understand key elements for financial success given that we are looking to bounce back.

1. Examine goals daily

As the bestselling author Brian Tracy said, if you see your goals daily it helps to achieve them faster. Even if we look at it once a week we are inclined to think in the right direction. This would help us succeed faster and in better ways than we have imagined. It helps trigger a connect or a set of ideas which are instrumental to grow beyond the comfort zone.

Also read: 5 tips for SMEs to plan a financial strategy

2. Understand wasteful expenditure

The pandemic has made us realise that wasteful expenditure can be eliminated by at least 10 - 20 percent. This can be channelised into investing in yourself and building a strong foundation for the future. This has a multiplier effect, and this is more important as our best investment is ourselves. It can be health or augmenting your skills, as many have felt during the pandemic.

Also read: 6 tips to improve the financial health of your business

3. Commit to compounding

This means being ready to invest for a long-term horizon, ideally for a duration of more than two years. Most of us look at investment in a manner wherein we want to get to our dream lifestyle. When we commit to compounding, we are able to get to our dreams faster as there is a foundation to achieve what we desire. It is the fundamental principle for growth as an investor.

Also read: 6 limiting financial beliefs that prevent SMEs from achieving business success

4. Take decisions basis your future

Most of us take a decision basis the now and here. The wiser ones amongst us look at the future and create a behavioral change if necessary. To share an example, if you are looking to get to your retirement kitty, you need to learn to stay the course. People make a mistake of changing course too often or starting too late. This is critical as many of us are looking at the scenario of changing two careers or businesses in our lifetime.

Also read: Steps SMEs can take for long-term business success

5. Buy only what is necessary

If you avoid that ‘Big Sale’ then you have saved 100 percent of your money. Many people make the mistake of buying more in these days. As a wise man once said “The deal of a lifetime happens every week”. This only implies the need to build up on the here and now and invest time and energy in defining what is useful and what could be useful.

The path to financial fitness is a bit like the triathlon, one runs, swims and walks. Similarly one needs to invest in oneself, save on wasteful expenditure and create a compounding machine. A mix of the three can create all that is worldly.

Also read: Mantras for financial success

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