The new year is fast approaching and, with it, the need to make new year’s resolutions so that we do better or enjoy our lives more in the future. At TRG, we believe in planning ahead and taking action to ensure that we achieve our own and our clients’ financial goals and we encourage all our clients to do the same.
From a simple savings plan to a commitment to learn more about the financial markets, financial new year’s resolutions can change the way you see and manage your money going forward. This, in turn, can have a major impact on the achievement of your life goals, whether that’s more disposable income or leaving a financial legacy for your children. So, this year, dedicate a portion of your resolutions list to your finances and you’re sure to benefit.
Five financial resolutions to consider
1. Start the year fresh
Do an audit of all your accounts and debit orders, and see where you can cut down or close off. Do you need more than one credit card? When was the last time you used that store account? Do you need to meet with your financial adviser to discuss a review of your investment and retirement strategies? It’s time to do some financial housekeeping – not only will you save money, you’ll have a much better idea of your financial situation.
2. Note your goals
Need to start or diversify your investment portfolio? Research shows that we are more likely to achieve our goals if we take time to write them down in detail, with specific timelines. Decide what you want to achieve financially in 2018 and make your list, breaking down each goal into realistic steps so that the goal is both aspirational and achievable.
3. Prioritise your debt
Debt (plus the interest it accrues) stops you from moving forward financially and using your money for more worthy or prosperous reasons. If you haven’t already done so, put in place a plan to systematically pay off your debt – regular repayments are a must. If you already have a plan, try to increase your monthly repayments or, if you come into some extra money, consider putting it towards debt repayment. Motivate yourself by thinking of all the things you will be able to do with your income once you no longer have to pay your debt bills.
Too often, we say to ourselves that we will save once we have more money or at the end of the month, once all the bills have been paid. Inevitably, we do not save as much as we would like or not at all. Save at the start of every financial month (as soon as you get paid) or set up an automatic savings debit order so that the money comes off your account and is safely stored away (or, better yet, invested) without you having to think about it or having the chance to use that money for something else.
5. Study up
Decide to read one financial book a month or subscribe to a financial newsletter or podcast. Financially successful people are invested in their wealth – they understand it and are constantly learning about the financial climate around them. Most of us do not receive financial guidance as children or at school or are anxious about handling our wealth. It’s important to educate yourself and take control – take a class, do some online research, and chat to your financial adviser about your money, your commitments, and aspirations – all these activities are essential to creating long-term wealth.
Do you need help putting your financial plans for the new year into action? Should one of your resolutions be to get expert help to manage your wealth? As independent advisers, from insurance to investment management, we can help you put in place financial goals and strategies to protect and grow your wealth, today and into the future.