Start 2020 with a plan

As we rush towards year end, this is also the time to reflect on whether you put those debit orders in place or started your tax-free savings accounts like you promised yourself.

It wasn’t all plain sailing, but the markets have certainly shown better performance than this time last year. Locally, the All Share index had a positive return of 8.5% year to date (1 January to 30 November 2019), while global markets performed exceptionally for the same period with the MSCI World return in Rand at 26.3%.

Question? how much closer did you move towards your “Financial Freedom”? And what exactly does that mean?

Ideally it means that you can maintain your desired lifestyle without relying on a pay cheque, thereby circumventing the age-old work-for-life-and-retire-at-65 paradigm. Being financially free buys you options, buys you time and puts you in the driving seat of everything that you do.

And how do you do this? Start 2020 with a plan.

Most important is to build up your money reserves as quickly as possible and adapt your lifestyle to facilitate this.

1. Have a goal – know where you want to be and work towards this. Crunch the numbers.
2. Clean up your finances – have a budget and stick to it. Pay down debt.
3. Make good career choices – it is hard to save yourself rich, so try to earn more.
4. Have an emergency fund - so when life happens, you don’t need to cash in your
5. Learn more about investing – or get expert help you can trust.
6. Stick to the plan - small steps lead to big outcomes.

In a nutshell, you control your money. It doesn’t control you…unless you let it. If your financial life is out of control as the year draws to a close – take some time out to make plans and amends. Set yourself on a path where you are doing the driving.