At this time of year, many of us will commit to do things a little differently in the New Year – to improve ourselves, help others or the environment, or simply avoid doing the same things all over again!
Head of Retail and Corporate Business, Craig Keary from AMP Capital has some sage advice: “Health and fitness” resolutions are popular as are intentions to “save more” or “pay down debt”. While these are all worthy pledges, we’d like to see people set more specific resolutions to grow their wealth during the year.”
Consider a resolution to contribute more to your superannuation. Or undergo a New Year health check of your finances – ensure your investments meet your needs, having the best rate on your mortgage and enough insurance. Why not invest time educating yourself about saving and investing; and maybe even challenge your children to become savers in 2015?
Here are our top eight New Year’s resolutions for a wealthy 2015:
1. Set goals. Start with what you want achieved by year end – then adjust your budget or behaviour accordingly. Perhaps it’s going overseas in a year’s time, so your action may be saving extra from the weekly budget or an investment with an income level during the year that ensures you have enough money at the end for your holiday.
2. Talk about your goals. Generally people who talk about their goals and resolutions are more likely to achieve them. Share your goals with someone you trust and respect and check in regularly to let them know how you’re going.
3. Don’t ignore your financial health. Do the same for your finances as for your personal health and undergo a financial health check. Review your spending; commit to saving an amount each month; if you have a term deposit, look at other investments such as corporate bonds that might give a better return while interest rates are low; conversely, check your mortgage rate, are you getting the best deal? And review your insurance so you and your family have enough cover. Meeting a financial adviser will help put your finances through their paces.
4. Save more in superannuation. It’s not just saving more for a rainy day. Commit a little extra to your super in 2015 so you have more money later. With compound interest, adding extra dollars now means having more for your lifestyle in retirement. And now is a good time to review your investments, having an appropriate mix of growth and defensive assets for your stage in life and for your goals.
5. Challenge your children. If you have children, start them on the path of saving early. Encourage financial goal setting and help them map out a plan. Consider rewards when they do it. After all, the better your kids are with money now, the more it’ll help down the track.
6. Invest in yourself. Even if it’s just making time to learn more – it’s often one of the best ways to help achieve your financial goals. Lots of valuable information is available online – often free. Consider adding a few wealth management websites, blogs or books to your reading.
7. Don’t leave it too late. If you have long-term goals that require a lot of money, don’t wait to start working towards them. If you’d like to retire at a certain age, your resolutions should include how much you need to contribute to super and then what strategy you should have.
8. Have fun! It’s not all about saving money to spend when you’re older. Include fun and satisfying short-term goals to reward you or your family’s good behaviour, keeping everyone motivated to achieve the bigger picture.