With the last day of 2018 upon us, while many of us are reflecting on the year gone by, the markets saw immense fluctuation with cryptocurrency losing more than half of its market value in the initial phase to huge banks being becoming cash deficit.
As we look forward to what the markets hold for us in the year to come, here are a few Investing Tips for you to stay on the top of your game, and, on top of the market:
1. Create a Budget
Understanding how you are spending your money currently will help you devise plans for the future.
The key to making a budget is to ensure that you cut down on wasteful expenditure and start saving more.
Don’t let your budget restrict you, flexibility is the major component of a good budget.
2. Optimize your portfolio
‘Perfect Portfolio’ is a term that sadly doesn’t exist, but we can surely try to achieve it. The first step to ensure an optimum portfolio is to spread your wealth and invest in different securities. Knowing when to get out of an investment is also monumental in maintaining a diverse portfolio.
Remember to rebalance your portfolio every once in a while to make sure that you don’t stray away from your goal.
3. Manage debt
It’s never too late to start afresh. Make 2019 the year in which you clear all your dues and begin investing without the huge burden of overdue bills. From there you can plan to regularly put money aside for emergency situations, so you don’t rack up any more debt in future years when unpredicted circumstances arise.
4. Increase tax efficiency
Don’t let taxes drain away most of your income. Try to invest in securities Funds having lower turnover, this reduces the frequency of taxable events. ETF’s and Index Funds are two types of options that you can consider for achieving this goal.
5. Develop long-term goals
Investing is all about ensuring longevity and survival. Develop sustainable plans to ensure comfort in the future. One way to do so can be by investing in EPF’s and PPF’s. Along with this, investing in your health and staying fit is a great way to kick off this goal.
The toughest part about making a resolution is, of course, to stick to it. To fill in the gap between your plans and results, try and make these a part of your wider financial plan. New Year lays down for us, a chance to reflect on the past and better the future. After all, who gets the importance of starting afresh more than an investor?
#FICSGGSCC #MONEXUS #FICRESOLUTIONS #NewYear2019