It's a new year and it's an opportune time to look at some new year's resolutions in terms of your financial status quo and how you can use 2012 as a time for some goal setting, wealth-building and wise investing. We want you to succeed in your wealth creation and we hope that some of these top tips for defining your own resolution help.
- Clarify and some set some investment goals - having a clear understanding of your goals will help you select the most appropriate investments to achieve them.
- Pay yourself first - Set aside some of your pay packet for your longer term goals. List all your expenses then work out how much you can afford to save each month. With the surplus put this money aside first so that you don't spend it on other miscellaneous items. The aim is to create wealth for the long-term.
- Set up an automatic payment - to help you organise your contributions to your investment(s) so you save automatically!
- Invest your savings to grow - make the most of your savings by investing them. The type of assets you invest in will depend on your financial needs and objectives.
- Harness the power of compound interest - each dollar you invest earns a return. If you reinvest that return, it can earn more dollars, allowing your investment the potential to grow much faster.
- Diversify your wealth - spread your risk across each of the main investment types (for example shares, property, fixed interest and cash) with an aim to achieve more consistent returns. In other words, 'don't put all your eggs into one basket'.
- Choose tax-advantaged investments (not tax driven investments) - consider sound investments that can also offer you tax benefits - such as investment property.
- Time in, not timing the market - it's not timing the market that's key, but rather the amount of time you're in the market.
- Get some advice - speak to an expert who can help assess your needs and goals.
- Do something now - the sooner you get your investment started the sooner you'll achieve your goals.
We've scoured the web to find some of the top resolutions from our renowned Australian sources…we'd love to hear what some of your financial resolutions are…
The Smart Investing folk at news.com.au have some good suggestions related to emotion, diversification, tax efficiency, asset allocation and superannuation
And another thing you may be interested in is a budget planner. It's a good time to redo your household budget. (For a few ideas, see ASIC's personal finance website http://www.moneysmart.gov.au/managing-my-money/budgeting/how-to-do-a-budget)
For any advice on property investing, please visit www.parktrent.com.au or call us on 1800 652 224.
