by Don Wernham – Simple Solutions
It is approaching that time of year again, dreary January. However, as well as making commitments like going to the gym, and maybe to lose a few pounds off that waistline, it is also a good time to have a look at your financial affairs also. So here are a few points to consider: –
Make a financial plan
It may seem obvious but it is the starting point to getting your finances in order and establishing some control over your life. The main areas to consider are budget, retirement planning, savings and investments, attitude to investment risk and emergency funds.
Set a goal
Equally important is knowing what you want to achieve from your financial plan. What are you saving for, how long do you want to save? For example if you are saving for retirement, how much income do you want into retirement? Once you know this figure you can then work back to see how much that you need to be saving.
And once you have done this, well you can then relax and let it unfold. True it will have to be reviewed just like all plans. But it is like having a clear desk when you come into work in the morning. If you remove clutter it is amazing how productive you actually are. It should stop you waking up at 4am worrying about finances. Give it a try.
Financial Markets
The markets have had a difficult year with the Greek situation, problems in the bond markets, and the China slowdown all causing a lot of volatility. There is also the sign that the US will raise interest rates soon (as I write this in November) it may have already have happened at the time of printing. In the UK there are also voices saying a rate rise is on the cards. Personally I don’t think it will happen in the UK until around May next year, or maybe as far as the end of the summer.
The Strength of the dollar has caused a lot of the global problems in markets in 2015, however I expect this to reverse in 2016. I also expect that there will be further QE by the European Central Bank, and this should cause the Euro to fall against the Pound.
Disclaimer – Please note views are my own and do not constitute advice
