January – what a depressing time of year. It’s back to work, back to sitting in traffic everyday and the month of the dreaded New Year’s Resolutions.
Many promise themselves to “give up smoking”, “stop drinking so much” or “lose that beer belly”. Others promise to “get the finances in order”.
When you’re trying to lose weight you are more likely to be successful if you follow a clear healthy-eating and exercise plan. It’s just the same for your finances.
You are more likely to maximise your returns and savings in 2015 if you act early and have a rational financial plan to follow.
Now, you’d be forgiven for being a little nervous to do anything after the start to 2015 we’ve had. A shaky December for the world markets, tumbling oil prices and the latest resurgence in terrorist attacks around the world. You may be thinking that now is a great time to sit back on the sidelines and do nothing.
You’d be wrong…
Before getting back in to the same old routines of 2014, consider the following 2 things:
Financial planning is about much more than investing in stocks and shares in the pursuit of a good return. It’s also about protecting the wealth and standard of living of yourself and your family in the event of unforeseen risks occurring.
Also consider that moments of uncertainty are often the best time get your investments in order.
We’ve all heard of the fundamental principle of investment: “buy low and sell high”. Prices tend to be lowest when market pessimism is at its greatest. That is why investors are often encouraged to buy when there is “blood on the streets”. Money is often made by running against the crowd and buying stocks that nobody wants to buy because they have recently suffered a decrease in their value.
Whilst this is easy to preach, many of those without financial advisors or a clear financial plan to follow fail to buy at these important moments through fear. This is great news for those that do as it keeps prices down for longer, thus giving them more time to take advantage of this buying opportunity.
This is particularly the case for those that follow a ‘Dollar cost Averaging’ investment strategy whereby they trickle money in to the markets on regular basis in order to benefit from fluctuating prices.
Whatever your circumstances, late January/early February is the perfect time to take stock after the year gone by and plan ahead for the one ahead.
So, if you are concerned about your finances or are interested in creating a comprehensive financial plan for success in 2015, click here to arrange a free introductory meeting and financial review with one of our professional advisors.