We’re coming to that time in January where New Year’s resolutions are coming under strain, if not completely abandoned. Many of us do resolutions because it gives us a great feeling that this year will be different and better and leave us in a better, happier, wealthier place than when we started. Unfortunately, as soon as we break that promise to ourselves, we are much more inclined to abandon the whole exercise and revert back to the status quo. If we make more than one resolution, they can be difficult to focus on, and so get abandoned too Without sounding self-righteous, I found – by accident almost – that having a ‘plan’ for the year that was written down, with the action plan and the steps to achieve those plans made a massive impact to that year – so I have been doing it ever since. Obviously my ‘plan’ is highly individualized to my practice and personal circumstances, but when I saw the surge in interest in Bingo cards on social media – I realised immediately that this is the easy tracking system I had been looking for – and it would be easy for anyone to customize their own. This basic Word template is available for free just by emailing me and is completely customizable to your own circumstances. Here is an example:  This is a simple A4 page that you can print out and have the satisfaction of crossing out all 15 squares until you get to your BINGO!  Hints: * Start with the reward you’re going to give yourself for getting WEALTH BINGO! You could even add a graphic into this square. * This contains sensitive information so careful where you post it. I keep mine at the top of my RedFile organisational system. (Another freebie available on request). * Should you share it? Probably not. Yes, it can increase your accountability, but I personally find that I am by far my own worst critic and don’t need anyone else putting the boot in. The only person I might share it with is my Financial Planner so that they can help you achieve some of those goals. * Understanding wealth creation can be broken down into a simple equation. Wealth is what you have left after you have spent your income. Consumption of your income (as opposed to the investment of your income) is crucial to growing your wealth, and unfortunately while an advisor can give you pointers, and make sure you’re not spending too much on things like insurance, that spending is the sum of hundreds of day-to-day decision you make – so it’s all on you. Own it, control it and you’ll have wealth left over to grow. We advisors can’t perform miracles, and we often find that investors look at the growth and performance of their investments first to find fault, when, as painful as it is to admit, the fault is closer to home. * Debt management is one of the low hanging fruit when it comes to increasing your wealth. Use a balance sheet (a template comes with the Redfile) to list your debt, and the interest you’re being charged. There is ‘good’ debt, and ‘bad’ debt. Mortgages are probably most unavoidable debt someone will incur – and has the lowest interest. Credit cards are usually among the highest, with the top of the pops coming from ‘payday’ loans (which I saw all over social media this month) with annual rates of at least 35%pa (neatly camouflaged by showing monthly repayments). Start with the highest interest rate and have a plan to reduce them to zero. If you read my posts frequently you’ll probably have heard me say – use credit cards, don’t let them use you. They are convenient, have no swipe charges and with virtual cards, now safer than ever before – BUT pay them off completely before they are due so that you do not incur interest. * Developing a personal brand is becoming increasingly important – even if you don’t work for yourself. The most logical place to start this is on LinkedIn and maybe ex-Twitter. If you want to raise your profile and reputation, then you’re going to have to publish some sort of ‘content’. Be warned, this takes a very long time and considerable effort but pays dividends. * I am not going to beat on the drum of getting your ‘affairs in order’ – I have written plenty of other posts on that – but it will reduce both your and your family’s stress in the case of an ‘event’ – and could save them a lot of money too. Good luck with your 2025 – It’s the first chapter in a good book, write a good one! Articles and Blogs: Will, Estates and Estate Planning NEW Wealth creation is a balancing act over time Wealth traps waiting for unsuspecting entrepreneurs Two Pot pension system demystified Keeping your legacy shining bright Financial well-being when dealing with Dementia and Alzheimers Weathering the storm Pruning your wealth farm Should you change your investments with changing politics? Taking a holistic view of your wealth Why do I need a financial advisor? Costs Fees and Commissions The NHI and what to do about it New-Normal for Retirement? Locking-In Interest rates – The inflation story Situs – The Myths and Reality Tax Residency – New Rules new headaches Are retirement annuities dead A new look at retirement Offshore investing – an unpopular opinion Cobie Legrange and Dawn Ridler, Rexsolom Invest, Licensed FSP 45521. Email: cobie@rexsolom.co.za, dawn@rexsolom.co.za Website: rexsolom.co.za, wealthecology.co.za |
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