Your investing resolutions!
This is the time of year when we reflect on the past and plan for the future — this goes hand in hand with making resolutions. Resolutions are meaningless if you don’t track your progress, according to research, and remember to pay yourself first.
Research has found that people who write a list outlining important goals, whether financial or otherwise, are more successful in accomplishing this goal by tackling easier ones first.
An example of this is paying off the smallest balances first, which tend to make one feel more progressive and inspired to continue with the other written resolutions. These accomplishments help to motivate and keep you accountable for the rest of the calendar year.
Here is a list of resolutions to help you for the New Year.
Take control of your own money and your future wealth. Always do your due diligence and be careful and research what you’re presently invested in. Don’t allow others to influence you or control your wealth.
Do your own research and ask as many questions as you need, no matter how silly they seem. The first priority is to start investing as much as you are able. Start investing now and make the right allocations for your assets. Asset allocation determines about 80 per cent of your earnings.
Stop procrastinating on what bond or stock to purchase and invest in each asset category that suits you and move forward. Budgeting is fundamental. Sit down and draft a budget that will help you accomplish your important goals.
Remember, you don’t have to budget to a cent, just get started.
It is a good idea to balance your cheque books and credit cards immediately. The benefits of balancing both is that you ensure the bank doesn’t make errors, overcharge you or add new charges you are unaware of.
Always look at fees and aim for low fees when investing or transacting business, while looking to get value in the service provided.
Lower your credit card interest rates. If you are struggling with high interest credit card debt, try refinancing the debt by consolidating cards. This reduces the amount of interest and annual fee cards you pay. It can motivate you to pay off the debt.
Also, keep the cards that have rewards attached to them that you will use. I’m a great fan of Frequent Flyer Miles. Earning cash back is very useful at the supermarkets, etc.
Consider refinancing your mortgage, car or student loans. If you are able to obtain more favourable rates, now is the time to finally take the plunge and stop putting it off. Refinancing a mortgage or car loan can save thousands of dollars over the life of the debt.
While student debt is a stark reality for the younger generation, refinancing these loans, which requires additional private debt, is a nightmare.
However, if you qualify for a lower interest elsewhere, just do it. It lessens the worries.
NHT REFUND
If you have been on PAYE and working for many years, it is likely you would have accumulated money on your NHT. Many people flock early to their website every January, eager to apply for their refund. Apply for it and top up your investment and pool your funds to buy some attractive and safe investments.
Look at your subscriptions, please. We subscribe to everything and we are not using most of what we subscribe to. One example is Netflix, I subscribe, but I can barely find time to watch the programmes.
Also, review cable packages you are currently paying for, and if it’s of no use to you unsubscribe immediately.
Limit your exposure to temptation; if you drive past the supermarket, pharmacy or mall and you are always tempted to stop and purchase something, use a different route to get home.
Also, automate as much as you can. Remember, smartphones can put your financial life on autopilot and cruise to your goals. Banks, credit card companies, investment companies and retirement plans provide easier ways which are automated to handle your bill payments, standing orders, savings and investments. Most of these services can be executed by the fancy smartphones we all proudly speak on.
Also, testing and notification apps will send reminders and rewards which will help to at least keep us on track.
What do you wish to achieve for 2017?
Lisa Minto-Powell is the manager, financial planning at Sterling Asset Management. Sterling provides financial advice and instruments in US dollars and other hard currencies to the corporate, individual and institutional investor. Visit our website at www.sterling.com.jm Feedback: If you wish to have Sterling address your investment questions in upcoming articles, e-mail us at: info@sterlingasset.net.jm