Five Financial New Year's resolutions
By Jason Lund
Five Financial New Year's Resolutions
Pssst. It's February. Already!
Did you accidentally forget to solidify your New Year's Resolutions for 2019?
No problems, we've got you covered with the following five financial resolutions that will have you approaching the new calendar year with a whole new mindset when it comes to financial goals.
If you want your resolutions to stick, the best place to be emotionally is all-in and motivated to succeed.
Even if you choose just one or two of the following resolutions to focus on, we think you'll be in front:
Resolution 1 – Define What's Worth Saving For
No-one is motivated by a goal that you set simply because you know you should set it. In order to practice fiscal restraint and potentially forgo immediate gratification in lieu of longer-term benefits, you'll need a big juicy carrot with your ultimate dreams and desires written all over it.
Don't think of your wealth creation goals in dollars and cents, think about what those dollars and cents can buy for you. Annual overseas holidays, a property or share portfolio that provides passive income, early retirement, more time with your family and friends, freedom and choice.
Resolution 2 – Run Your Own Financial Race
Social Media is great for keeping up with what's happening with friends and family, however don't fall into the trap of comparing your financial situation to theirs. Remember, most people just post the good news on Facebook, they don't share the months of eating baked beans, so they could afford the European holiday. Or worse, pictures of the credit card bill that they are left paying for months or years after they arrive home. Everything is relative. If in doubt, refer back to point one and remember what's driving you and your financial situation. That's the only thing that matters.
Resolution 3 – Ditch the (non-deductible) Debt
Credit card debt is horrible, and it doesn't help anyone except the banks. Do your best to reduce your high-cost, non-deductible debt as soon as possible. Oh, and don't get distracted by that new car – it will depreciate in value as soon as you leave the car yard. Imagine how much interest those thousands of depreciated dollars could have shaved off your mortgage had you invested them there.
Resolution 4 – Have a Difficult Conversation
If you are at an age where your parents are ageing, it might be the time to start a conversation about Aged Care options or their Wills and Estate. I know, I know, hardly dinner party conversation but probably the most important conversation that you can have with them. We see so many people try and navigate these issues when they are under time pressure and it can be a really stressful situation. And one that can be avoided!
Resolution 5 – Review and Renew
Hands up if it's been a goodly while since you reviewed your personal risk insurance policies. Well, now is the time to review them and see if they are still relevant and the best value that you can receive.
If you feel that 2019 is the year that goes down in your history as the year that you take control of your finances and work towards the best life possible, then these resolutions will help get you cracking. And if you need any help with your wealth creation in 2019, I'm of course very happy to assist.
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Jason Lund is a Financial Planner with Morgans Port Macquarie. He has a comprehensive range of financial planning skills that he uses to take the difficulty out of planning for your future. He specialises in Financial Planning, Margin Lending and Gearing Strategies, Retirement and Estate Planning, Superannuation Advice and Wealth Management.