New Year’s Investment Resolutions for 2017
Making New Year’s resolutions for your investments is the best thing you can do to get your year going and improving your financial position.
Don’t worry, we are not talking about a complete overhaul of your portfolio or your investment philosophy just potential ways to realign your investment compass.
Over at JPI we have put our heads together and come up with 10 resolutions we recommend for you.
1. Know What You Want
Have a clear, concise financial goal for the year. Saying “I want to have my credit card paid down and more money in the bank” isn’t enough. Instead, you should write a financial resolution that is clear and actionable like, “I have the balance on my credit card paid down to $0 or I want over $5,000 in my savings account.
2. Prioritize Your Debts
Not all debt is equal. Make a list of your liabilities and organize them by the annual interest rate. Those with the highest rates (most likely your credit card debt) should be paid off immediately. It does no good to invest money while you are paying 19 percent or more in interest each year. Investment debt such as mortgages or investment loans should be at the bottom of list. This type of debt is ok.
3. Stick to a budget
Wealth is created, first, by spending less than you make. Creating and sticking to a budget can help you accomplish this important goal. Budgeting, however, doesn’t require you to track every cent you earn. We know that budgeting can be tough so take some time and research budgeting options recommend on the net.
4. Track your investments
If you don’t know your asset allocation or investing costs, start using one of several free tools to track your investments. Understand how to use excel or Google Spreadsheets. These are extremely useful tools for tracking your investments.
5. Financial Education
Take some time this year to read investment books, articles online, subscribe to weekly newsletters and it you can attend investment workshops.
6. Do your research
Due diligence is imperative. It’s important that you do your homework when weighing up a new investment opportunity! Avoid the tips from friends and relativities. You need to make informed decisions about your investment choices.
7. Protect yourself and your family
Ensure you have the right personal insurance in place. Building a strong financial base is not just about making money, it is also about protecting what you have already. Estimate the appropriate level of income protection, critical illness and life insurance to protect your family if things go wrong.
Ensure you have a will in place outlining how you would like your assets distributed if anything happens and appoint a power of attorney to help if you are unable to make financial decisions.
8. Take the Time to Reflect
It sounds simple, but before taking action, reassess your situation and the different options available to you. Go back to the basics and reminding yourself of the following:
- Risk tolerance
- Need for short-term income
- Long-term goals
- How you feel about your finances now
All these points need to be taken into consideration each time you make some type of investment. Life is constantly changing. It’s likely that the above categories vary from time to time, too. So, you might want to start by investing in some reflection. Ask yourself whether your current investments have the potential to meet your goals.
9. Exercise regularly
Ok, you are probably wondering why we recommend you include exercise in your 2017 investment resolutions. Exercise has been proven to help us in our finances. It may seem counter-intuitive, but by creating good habits with our health, the benefits spill over to our spending habits. So, get healthy and wealthy at the same time.
10. Start investing now
If you skimmed over 1 – 9 because you don’t invest, start now. Forget the advice that you should pay off all your non-mortgage debt before investing. That can take years, even decades, for some. You simply can’t afford to wait that long to invest. Make 2017 the year you started investing.
Contact us and we can discuss ways which Japan Property Investments can help you with your 2017 investments goals.