Some New Year’s resolutions are made to be broken within a matter of months, but when it comes to your finances, there are rarely any quick fixes that will serve you well in the long-term. Taking the time to form a strong and carefully considered financial plan is essential in helping to ground you against all that lies ahead; paying off a mortgage, expecting a baby, relocating for work and so on. Take the ultimate, decisive steps now for a future that will well and truly pay off, in more ways than one.
Write an Investment Strategy
Many people put this off as something to do closer to retirement age and this is incredibly foolish. Crafting a personal investment plan not only helps you plan for a better retirement but prepare for and subsequently cut back on all expenditure leading up to it i.e. saving towards a mortgage down payment, investing in a family car or paying off debts within a set time frame.
Once you are satisfied and in agreement with your spouse or family about your investment plan, stick to it and make sure you do with the help of memos and self-actualizing exercises. Create a basic financial flowchart of your devised strategy, for example, and display it at home somewhere you will always look such as beside a kitchen calendar or on a notice board in the hallway. This way, you will be thinking about it regularly and you can keep yourself in check and notice areas in which your finances could be faltering.
Encourage others to plan with you
With the support of your spouse and close family, sit your children down and talk to them about the basics of money such as its origins, how it is used and how they can best put money of their own to use. If you instill in your children from a young age that being wise with money will permit them to be able to drive, become independent and feed their hobbies and interests, they will be motivated to save for their future and begin to have a more sensible attitude towards money.
In addition to being open and honest about money with your children, don’t forget to keep the lines of communication open with your parents on the subject. More people than ever before are finding themselves caring for their elderly parents in later life and this can prove to be an unexpected financial burden. Be sure to ask them as early as possible about what it is their retirement plan entails and their healthcare etc. – this will help you feel in control and far better prepared for such an eventuality, financially and otherwise.
If you wish to make financial changes for the future today, a good place to start is by seeking expert advice on your financial plan or investment strategy. Trusted companies such as Sanlam Private Investments regularly report on current financial trends and conduct studies and reports that reflect views on investment from various age groups in order to provide clients with the bigger picture – and perspective is one thing that a major financial decision really needs.