201601.02
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How to really fulfill your New year resolution

New year resolution  for 2016 analyzed:

According to Westpac survey, the Australian new year resolutionpublic new year resolution for the upcoming year is to save $11,234 for the upcoming year. the reasons to save change from person to person. there are many goals setting programs out there from different authors, from Jim Rohn to bob proctor, but the number one tip that will help you achieve your new year resolution is the question how? how will I do that? you see your subconscious brain will work to think how can I overcome all the obstacles and achieve my goal. but before we will explore some tactics to get your resolution under way, let’s see all the challenges you are facing to get there. 


Your new year resolution challenges:

The first obstacle to overcome is paid wages raise. you see if you want to save more money, you need to have more money in your pocket. the numbers look gloomy. according to ABC figures, the annual wage growth for this year is the lowest recorded in the past 20 years. when taking into consideration the inflation, the annual “real” pay raise is very close to 0%! the average Australian will have to find some other way to come up with extra $11,234 dollars at the end of 2016. 

The second obstacle to overcome is the RBA cash rate. many Australian are hoping for a rate cut in 2016, but the numbers are telling us a different story. many Australian think that the RBA decisions are aimed at their wellbeing. you can’t be so far from the truth. the RBA will only base his decision on the productive sectors wellbeing. the goal of the reserve bank is stability and growth. in order to achieve that they must help the economy grow and at the same time prevent double digit inflation. if the RBA could, he would have managed two different cash rate. one for the private sector and another for the public sector. but the fact that money has no smell, it would have opened a door for arbitrage. the main way you can predict the cash rate is to follow the US to AUD figure. because australia depends on money coming in from export, the lower the Australian dollar the better it is for the economy. why? because creating the supply is in the Australian dollar and getting paid is in US dollars. at last, US cash rate has gone up 0.25%. this is bad news for people waiting for a rate cut, they will have to change their plans. when a central bank raises the cash rate it makes the currency stronger. the stronger the US currency, the less chance the RBA will cut the cash rate. and all indication are on a US cash rate to rise some more in the very near future. 

But the biggest problem regarding the cash rate lies with the new year resolution actions the public took. because there is no way to save money, the next best thing is to put your money in real estate. the problem is, most people rely on mortgages to pay for houses. the fact that this caused a bubble in the market means you needed more money to buy the same quality house. the more money went to real estate, and the amazing debt it created means in reality that the RBA has metaphorically created a “bombing attack” on the private consumption ability. this means that the money you did not have to pay for the overpriced house prices now missing in your pocket when you come to buy the thing that stimulate the economy.

The third obstacle to overcome is upcoming GST hike. a GST hike is bad for the economy. the fact that you will have to take out of your pocket 5% more on everything, means you are going to spend less. it means the economy will slow down. and it means some difficulties to the industries that rely on overspending like retail. there are things you can cut your spending and there are things you can’t. basically, the basic necessities are a must, while things like new clothes can be off your menu. if the GST hike will take place, the chances are you will have to double your efforts to reach your goal.

Your new year resolution strategy:

We have seen all the things that will be your major setbacks regarding the new year resolution achievement. now let’s talk about what you need to do to overcome all this major problems and sit down with a good cold beer of success, writing down your check mark on 2016 new year resolution.    

The first thing you must do is put your new year resolution in writing. if you are just telling people this is my goal, I am sorry to inform you, this is not a goal, this is just a wish. and like the story goes wishes almost never comes true. so you must put your goals in writing and in a place where you can look at it a few times a day. you see the power that lies within this tactic is the fact that something magical happens when you write down your goals, they turn into a hidden demand, that you must get. that alone will push you so ever close as to get them. 

The next thing is you must ask the question How? How will I get my 2016 new year resolution materialize? whenever we ask ourselves the question How something special happens. we start thinking of all the possible ways to solve a problem. we must sit down with a pen and paper and write down all the ideas that come to our mind regarding the way to achieve our goals.  

The next thing is we must understand where our current money goes. if you are managing a company the number one thing you must know is where your income comes from. and where are your expenses goes. when you know these two figures it’s easy to improve upon them. so go on and make yourself a family budget and go through every expense. understand where it goes. think and feel like a big money manager, think that your yearly bonus ($11,234) depends on it. when you will actively do that, you will be able to find hidden treasures. 

Another key is to make a promise that you will get your goal to someone important other than you. you must understand in reality, we are very easy on ourselves. as a result, we tend to quit at the first site of a real challenge. so the trick here is to promise someone else. when you do that you might get all embarrassed if you fail to achieve it. other people tend to put us on the spot. and that’s the key, feeling we owe someone something will make us go rather than quit when the going get’s tough.    

A major tactic is breaking the goal into small goals. instead of saying I will save $11,234 a year. say I will save $1,000 a month. when we break any goal to achievable bites we can swallow, then our brain stops looking for reasons why not.  

Conclusion to the new year resolution decision:

new year resolutionAny goal in life demands discipline to achieve. if you want to make your life rewarding you must delay gratifications. your way to success is easy. just copy the way of life that your parents had. why do you think your parents haven’t got debt and live comfortably? the answer lies with the decisions they made. and here is the big secret. the difference between the rich people and the poor people is straight forward. Poor people take whatever they make and spend it all. whatever left they save for the future (in a way they mortgage the future for a better present). while the rich people save whatever they make, and only spend what’s left. living at or below their financial strength. this allows them to save and enjoy the power of compound interest. but if you always spend, a major error in judgment, there is little future for you.