The new year is here and so too are our New Year’s (Investment) Resolutions most of us have set for 2020?
While we are usually quite dedicated to these resolutions at the beginning of the year, they tend to fade over time. The reality is that if you don’t apply strict discipline to achieving your resolutions, you will fail to achieve them, as most people do?
When it comes to financial goals, one get caught up pretty quickly with life’s happenings and as you know this is so the norm every year as to what’s happened in the past where you do not achieve what you have set out for yourself, this mindset repeats itself every year?
“Choose to focus on making better financial decisions in the new year and decade ahead” (please see my previous posts – articles). Here are some guidelines to help you achieve your financial goals for 2020.
1. Set clear Goals and Objectives with achieved outcomes
Know what you need to achieve and identify specific reasons why reaching those goals will benefit you, whether it’s an estimate of costs for your next December holiday, property purchase, or how much you will need to save towards a specific goal or Retire comfortably.
In most cases, it is advisable to consult a financial advisor in this regard to work towards your goals and objectives and to create a plan to guide you on your future financial journey?
2. Create a specific Financial Plan
This is where most resolutions are not achieved. The moment you realize that you will need to cut back on your usual social spending needs and wants in order to save money, those resolutions quickly become something you’d rather set aside for 2021. The key to success lies in the fact that your Plans should be realistic and your goals achievable.
For some it may be impossible to start off by saving R2 000 per month in order to reach the goals they set in step 2, so start with R1 000 instead, with the goal in mind to increase that amount every year.
Investing R2 000 per month at a growth rate of 10% per year over a period of 20 years, will give you more or less the same total as investing R1 000 per month, with an annual investment escalation of 10%, at the same growth rate.
3. Gain Family and Friendship support
Don’t tackle your new year’s resolutions alone. Involve your family and friends and make sure that they are well aware of your goals and resolutions set from the outset. Of course, it’s more fun to dine out or to spend money on something new, but those extra savings can make a huge difference to your investment’s future value.
By sticking to your resolutions, you may also inspire your friends and family to follow in your footsteps and to start a challenge or savings club to do the same?
4. Monitor your progress
This doesn’t mean that you’re done with your savings strategy. Check your investment statements regularly at least once a year and review in order to determine whether your investments are showing sufficient comparative growth, and more importantly, to keep track of your investment goals and objectives.
A small saving in investment costs can lead to a huge boost in your investment performance over the long-term. Also, ensure that you get into contact with your financial adviser at least once a year to discuss your investment strategy and any possible changes to your financial situation.
If you can commit to embracing each of these guidelines, you’ll set yourself up for a much greater chance of achieving your financial goals this year and in years to come?
Remember it is not about how much you are saving – merely making the start towards achieving your own financial success?
I look forward to assisting you in unlocking your future financial goals and dreams.
Yours in financial success