Best Investing Resolutions that will Improve your Financial Life in 2019
At the beginning of every year, it’s normal to feel the urge to resolve your financial lifestyle. Mostly, it’s the previous year under-achievements that propel you to reform for a healthier economic life. Among the resolutions that we consider, many gears towards investments for improvement of the wealth mark. While many people make multiple resolutions, the majority never see them through.
January comes handy with opportunities to take control of your finances. But by mid-February, these resolutions usually fade away. The U.S News and World report that 80% of these resolutions fail by mid-February. To avoid this trap, ensure to make realistic and sustainable resolutions.
You will best derive realistic resolutions from achievable goals. Thus, your initial step should be to set goals to achieve in the year. Then, determine resolutions that will deliver these goals. Investment is an on-going and progressive activity. Sound resolutions will not only help in your new year but also in the coming years.
Are you worried that you’ve not been able to start investing in businesses? Here are six resolutions that will undoubtedly help you to achieve investment decisions.
1. Embrace Budgeting
If you don’t have a budget for 2019 already, prepare it. The earlier you have it, the better so that can review how best you are following it. A budget is merely a plan on how to spend your money. Without it, you may find that all your money goes to unplanned expenses. You end up not having any savings or investment. A budget will enable you to determine early enough if you have enough money to do all your staff.
A budget helps you prioritize on most essential things when money is not enough. Thus it ensures there is enough money for the things you want to do. With a budget, you can control your debt or even keep out of debt. The temptation to spend is certainly what will keep your pockets empty thus out of investments. Adopt the habit of budgeting, and you will spend less and have more to invest.
2. Involve Your Family in Financial Decisions
Ensure to involve your family in your financial plans to win support. Family involvement helps gain plans acceptance, and they also feel they own the plans. Your family members will be the first to disrupt your financial decisions if not involved in them. Notably, you should plan household budgets collectively. It will help to get everyone on board in the saving and spending wagon.
Teach your children on the importance of cutting down unnecessary expenses and saving.
Educating your family on such financial matters will help them get the basics of financial concepts. It will also set a path for them to understand how to achieve family financial goals clearly.
Here in Singapore, the head of the family being the breadwinner makes the most financial decisions. While it may seem unnecessary to involve the spouse or children, doing so can deliver positive results. Your family members may bring inputs that you may have forgotten or overlooked but significant. Their opinions on the various subject may illuminate on the best financial plan. Thus, failing to involve them might be what is preventing you from investing.
3. Have a Health Plan
A common factor that blocks from the ability to invest is health problems. Securing your family health in advance is paramount. It will not only ensure the availability of funds during a medical emergency, but it will protect you from using your investment funds. It is vital that you don’t mix family health and investment. If you save your funds to either offset hospital bills or invest, I bet you will never invest.
It is therefore important to put savings toward a medical cover to take care of your health and family health. Consider an insurance policy that will help you in this endeavor. On the other hand, a health plan will help you take care of your health. You will not shy away visiting your health expert routinely to avoid extra expenses. Your health is your first wealth. When your body is sound, your soul is rational and supportive to execute investments.
4. Pay Off a Bad Debt
A debt or debts can hinder your investment plans in a significant way. For instance, a high-interest debt will continue taking up more of your income every month. Even if you invest, the interest may cost you more than you’d earn in your investment. Particularly, if your debt is bad debt, you may not realize any goodies in an investment.
Therefore, it’s advisable to pay off your bad debt first. By clearing your debt, you can save money on interest. However, if your debt is a good one such as a loan to buy an apartment complex, you can retain it. In this example, the rental income covers the debt, and in a few years, it will be gone.
5. Have a Thorough Research About the Investment of Your Choice
You must equip yourself with sufficient knowledge about your investment of choice. Consider approaching a financial advisor with the questions you have. Financial advisors can provide a great deal of; thus, you don’t need to have a Ph.D. in finance. After you learn about an investment, you only need to align your investment approach with your knowledge level.
You may also consider reading some books or even taking an investments course. Knowledge is power and can make the difference between success and failure.
6. Consider the Tax Implication
Taxes affect every area of our life including investments. While rules come and go away, taxation won’t. It touches every aspect of your finances from income, what you buy to allowances to your investments. Thus, you should not treat tax as something to overlook. You should view it as a way of increasing your gains. It’s possible to find that a significant portion of your income is going to tax.
The three things to consider about tax are tax-saving investments, returns filing and tax payment. Ensure to make a calendar for the last two. Failure to file returns and pay taxes can result in substantial penalties and thus losses. On the other hand, tax-saving investments can help reduce your tax burden. Use the assistance of a tax professional to evaluate the tax implication of various investments.
Observing the above six resolutions will help you get closer to your money goals. Thus, if you’ve resolved 2019 is the year to whip your finances into shape, these resolutions are something to emulate. You only need careful planning, discipline, and patience.