At this time of year, most people are making either fitness, health or financial resolutions, so there’s a good chance that you’ll be considering a new year’s financial review for 2019. However, according to a report from the University of Scranton, only 8% of new year’s resolutions are maintained or achieved. So, we’ve outlined 5 ways to help you keep those New Year’s financial resolutions.
1. Undertake a financial review of your current assets
The new year is a perfect time to take stock of your current financial situation, including cash holdings, savings, ISAs, pensions and loans etc., to help identify any areas for potential savings and improvements. You may decide that cash savings held in the bank, for example, are yielding very little interest and may be exposed to an increasing inflation rate in 2019. It’s important that this first task identifies whether your portfolio is diversified enough to protect against volatility and downturns. You can Take this Test to see how exposed your family’s assets are to further market downturns.
2. Be realistic and specific
Setting goals that are too vague or too challenging sets you up for immediate failure, which will probably mean you are likely to give up. Instead, think about smaller, specific financial goals that can provide you with a sense of achievement. It’s important to give yourself a timeframe, so you can measure your achievements, for example, within 3, 6 or 12 months periods.
3. Budgeting
Budgeting is one of the fundamentals of good financial planning. Keeping track of your income and expenditure each month makes it easier to set realistic budgets. Allocating your income in percentages can be a useful habit; for example, 20% for financial priorities, 30% for lifestyle spending etc. This enables you to save and treat yourself at the same time. At Physical Gold we offer a popular monthly saver account, which helps spread the cost of buying gold and also helps with your budgeting plans.
4. Look for tax-free and VAT-free alternatives
It’s not just your ISA that offers you a tax shelter for your investment growth. Rather than paying tax on investment gains, why not consider tax-free gold or silver coins. Make sure you research the best physical gold investment to ensure your gains are tax free and meet your objectives. It’s also never too soon to start planning for your retirement as, any money you put into your pension fund, will grow through the power of compound growth. Plus, you’ll also benefit from the tax relief. Pension Gold provides the opportunity to add gold bullion and balance to your UK SIPP.
5. Track your progress
It’s worth financially reviewing where you’re up to on a regular basis, in line with the goals you set, so you can take appropriate action. Step back and consider your portfolio holistically. If you don’t currently own any gold or silver, now could be a good time to consider these, so as to provide balance and protection to your other assets.
Invest in gold and silver as a safe haven in 2019
With 2019 looking likely to continue with uncertainty and instability, especially with both the ramifications of Brexit this year, a new year’s financial review is the perfect opportunity to adopt some new financial habits. Gold and silver have for centuries been safe havens for investors in time of political and economic turbulence. Take a look at our Guide on investing in Gold or Silver for further information on the benefits of precious metals in today’s volatile markets.
Contact Physical Gold for support to your financial review
We know completing a New Year’s financial review can be gruelling, but it’s a very worthwhile exercise. Why not call Physical Gold today on 020 7060 9992 or contact us online for a call back. We are to help and can recommend suitable gold and silver products (from our coins and bars selections) based on your specific financial circumstances.
Image Credit: Mohamed Hassan and Reconcycles
