A new year can bring-on feelings of new beginnings and a chance to refresh, reset, and refocus. So with the new financial year now upon us, now is an excellent time to reflect on the year that’s been but also renew or reset investment goals for the year to come.

Here are some suggestions framed in the context of common new year’s resolutions:

Stop procrastinating…

It’s never too early or too late to start investing. Of course, the earlier you start, the longer your investment time frame and the more compounding benefits you reap, but that shouldn’t put off anyone who has yet to do so.

What also shouldn’t put you off investing is the initial sum you need to start. interestingly, three-in-10 Australians believed they needed more than $10,000 to start investing, when in reality, most low-cost investment and savings plans require only a $500 minimum.

It all comes down to ‘execution’ or taking that first step - your future self and lifestyle will be grateful that you invested for the future.

Control your expenses…

For many, the notion of setting and sticking to a budget conjures up images of living some dull, joyless existence, but in reality nothing could be further from the truth (within balance of course). Controlling your personal expenses and “paying yourself first” can be immensely beneficial, particularly if you’re feeling anxious about rising living costs.

Being more mindful of your money habits doesn’t necessarily mean living like a Franciscan monk, but rather, it’s to help you feel more in control of your financial situation. Having a budget can help you keep track of what funds come in and out of your bank accounts, what you might need to save to achieve your larger goals, and whether or not you have enough to cover any emergency or unexpected expenses.

Look at budgeting as a source of calm and comfort, rather than a set of rules and restrictions or ‘going without’.

Don’t obsess over negative returns…

With global markets swinging from one extreme to the another, it’s perfectly natural to occasionally feel rattled or disillusioned. But as we’ve all been schooled time and time again, investing should always be viewed through a long-term lens and any short-term volatility, not matter how sensational (“it’s different this time!”) is just that - a short term blip.

After 40 years of market cycles and geopolitical crises, I can personally attest that my happiest, calmest, most successful clients are primarily long-term investors. Deciding to be the person that doesn’t react to market fluctuations (positive or negative) can be a liberating experience, and I promise it will make you a much better investor.

Take a look at Vanguard’s Index Chart which visualises 30 years of market history.

Balance is excellence…

Dr Stephen Covey used to say that “the very essence of excellence is balance”, it’s similarly important to find balance in your investment portfolio.

Having a mix of assets is an important ingredient for investment success - it reduces portfolio risk, as the best performing asset one year can be the worst-performing the next. The temptation to heavily weigh your portfolio towards the current ‘t-shirt of the day’ (ie AI, crypto, lithium etc) is understandable and occasionally quick fortunes will be made. However, the age old wisdom of not putting all of your eggs in one basket still holds true.

Enjoy your weekend.

Rick Maggi