5 ways to get in better financial shape in 2020
Each year Strava, a health and fitness social network, release their prediction for ‘Quitter’s Day’ - the day most people’s commitment to their new year’s resolutions will begin to falter. This year they’ve predicted that Sunday 19 January will be the day!
We can’t help with health and fitness resolutions, but if your motivation towards your financial goals is being tested, here are a few ideas to help beat ‘Quitters Day’ and hopefully keep you on track:
1. Look back to move forward
Take some time to reflect on 2019. Assess whether or not you achieved your financial goals for last year. Think about what went well and what didn’t go so well and then think about any changes you would like to make to 2020. Your Financial Planner can be on hand to guide you through this assessment and can help you determine what to keep doing and what adjustments can be made.
2. Save more money
It seems rather obvious that saving more money is a good thing to do in order to be financially better off. That said, it can be easier said than done. A savings tip is to set specific, actionable goals. For example, ‘I will save £X,XXX in 2020’ instead of ‘I will save more money in 2020’ – simply choose an amount that suits your circumstances and is appropriate for you. Setting a specific amount allows you to measure progress and understand if you are on track.
3. Go on a spending diet
Hand in hand with saving more money is spending less… after what can be an expensive festive season, January can be a good time to tighten the reigns on spending and be more aware of your money.
4. Don't give in to market fluctuations
Markets by their very nature experience various highs and lows. As we go into 2020, it’s worth bearing in mind that your investments should primarily be determined by your financial goals; not by knee-jerk reactions to moving markets. It can be difficult in times of market dips; however, taking a long-term view when it comes to investments is normally the best approach.
5. Personalise, plan and review
Make your financial plan for the year relevant to you, your goals and the level of risk you’re comfortable taking.
Whether it’s saving for retirement, planning the purchase of a second home, gifting money from your estate to your children or beneficiaries… Whatever it may be, setting both short-term and long-term personal goals can play an important role in achieving your overall plan.
And remember, a financial plan is for life not just for Christmas… it’s also worth regularly reviewing your goals as time goes on, update them (if necessary) and review your progress regularly.
Your financial planner can help with planning and reviewing your yearly financial plan to help ensure you’re on track to meet your goals.
Looking for a financial planner?
If you think you could benefit from expert advice in setting out your financial goals, and don’t yet have a Financial Planner, you can book your free no-obligation consultation with one of our Planners today.
The information in this blog should not be regarded as financial advice. Please remember that the value of your investment can go down as well as up and may be worth less than you paid in. The information here is based on our understanding in January 2020.