Five Investment Resolutions for 2012

1. Save more than you did last year:

“Even if you didn’t save anything this year, remember that it is never too late to start saving and in fact it will only be to your benefit to do so as soon as you can.”

 

 2. Get rid of unnecessary debt and avoid it completely if possible:

“Easy access to debt gives people that confidence to think that they can live way beyond their means which, as we’ve seen in a vast number of cases, can have disastrous consequences.”

 

 3. Pay for your necessities before spending on luxuries:

People often make the mistake of spending on luxuries before they settle debts and make their necessary purchases – especially during the festive season.

 

 4. Understand the important tenets of investing:

  • Risk vs. Return
  • Adequate diversification
  • Effects of Inflation, costs & taxes
  • Avoid trying to time the market
  • Focusing on the long term

 

 5. Remember the financial independence is all about strategy:

“A financial plan must take into account the big picture and should be in place for the long term. To do this, investors need to priorities their goals and should consult with a financial adviser who can draw up a comprehensive plan aimed at achieving these goals.”

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