Many of us set resolutions in the new year, but over time these seem to fade, because we lack the discipline to achieve them. However, when it comes to financial goals, you shouldn’t get caught up in the past says Schalk Louw, financial adviser at PSG Wealth. With the new year, you should focus on making better financial decisions and here are some guidelines from Louw that will help you to achieve your financial goals in 2020.
Have and Set Goals
You need to first identify what it is you want to achieve and why reaching those goals will benefit you, whether its how much you need to retire comfortably or an estimated cost for your next December holiday. Know what your financial goals are and if you need help then get the advice of a financial expert as they will be able to guide you towards your goals.
Have a Plan
Often resolutions fly out of the window as soon as you realise that you will need to make cutbacks to save money, so you push your goals off for another year. However, your plans should be realistic so that your goals are achievable. It might be impossible for some to start by saving R1000 per month so that they can reach their goals in step 2 of their plan, so rather start with R500 instead and have the goal to increase this amount during the year or every year.
Invest the money you save that has a good growth rate after all, compound interest is your friend.
Have a Support Network
Get your family and friends on board with your resolutions, so they know what you are trying to achieve. Going out and spending money is fun, but those extra savings can make a huge difference to your investments future value. Your friends and family should be supportive and may even follow in your footsteps.
Keep an Eye on Your Progress
Keep an on your statements and check them to ensure that your investments are showing adequate comparative growth. Also, look at your investment costs because any saving in these can lead to a boost in your investment performance. If you experience any life changes or financial changes then contact your financial adviser to ensure that your investment strategy is still right for you.
Louw says that if you can commit to embracing the guidelines above then you will give yourself a much better chance of achieving your goals.
Article Source: https://businesstech.co.za/news/business/366472/4-investment-resolutions-for-2020-from-a-financial-advisor-your-future-self-will-thank-you/