New Year’s resolutions are easy to make and but not so easy to implement. Some common resolutions are to lose weight, to exercise more, and to eat healthier foods.
Our intentions are good. In January we’re at the gym, sweating off all those holiday calories. But by March we’re back to binge watching Game of Thrones and Outlander.
Let’s start this year with some simple financial resolutions. You get a gold star if you achieve all three.
1. Review
Do you know where your money is? Have you been tossing your unopened bank and brokerage statements in a drawer all year? Or maybe ignoring those emails that tell you your online statements are ready to review?
Close Facebook and email. Open your bank and brokerage accounts. How much investment income did you make this year? What do you own? What percent is stock, bonds, commodities, real estate, cash? Knowing what you own and how those investments are performing are the first steps to investing success.
2. Dream
Grab a cappuccino or a glass of wine, settle into a comfy chair, and let your imagination take control. What do you want your money to do for you? Are you saving for a house? A second home? College tuition? Travel? Retirement? A gift to charity?
Your money is just a tool to help you live the life you want. Your dreams help you decide how much you need.
3. Act
Once you know what assets you have and how they are performing (Resolution 1 – Review) and have a better idea of how much you need (Resolution 2 – Dream), then it’s time for Resolution 3 – Act. How can you achieve those dreams? Should you save more from each paycheck? Position your portfolio for higher growth? Diversify to reduce risk? Add dividend stocks to increase income?
Talk to your financial advisor to see if your investing plan is on track. Take the appropriate steps to position your assets to achieve your dreams.
Then grab your beverage of choice, get back in that easy chair, and let the binge watching begin!
Frances Aylor 