Five tips for keeping your finance-related New Year’s resolutions

As we approach another New Year, people will be making all kinds resolutions. Unfortunately for most, statistics show that only 8 per cent of those resolutions are likely to be achieved.

However, if your resolutions are of a pecuniary nature, with the right approach and guidance, the chances of success can be much higher.

When setting financial goals – whether related to pending retirement or at any point in life – keep the following things in mind:

  • TIP ONE -Play the long game: Apart from winning the lottery or inheriting millions, there really aren’t any overnight get-rich-quick schemes. Make a 10-year plan then approach it in bite-size chunks.
  • TIP TWO – The old rules and risk management strategies still apply: Shares and property are still sound investment opportunities, as is spreading your investments across a range of risk levels and asset classes.
  • TIP THREE – Always let your assets work for you (especially in retirement): There’s a common misconception that the best way to approach retirement is to sell your assets and put cash in the bank. A far more sensible approach could be to borrow money against those assets to enable additional wealth-generating opportunities.
  • TIP FOUR – Avoid panic selling like the plague: Few people sell their homes when the real estate market is down, so why sell shares when the stock market slumps? Wealth comes from buying, not selling, in the downtimes so plan to allocate some capital to make the most of the rainy days.
  • TIP FIVE – Seek professional advice: Just as you’d seek advice for health or legal issues, you should seek the right advice for financial affairs.

Overcome any fear of bad outcomes by working through your worries with a good adviser so you are well informed and you can then make decisions with the confidence that you understand the strategy and investments. This will help you take action and, most importantly, sleep at night.

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