Making your financial New Year’s resolutions stick
The ‘January effect’ is a well-known phenomenon among economists and psychologists alike. Regardless of market realities, consumer optimism and share prices often see a temporary boost. So does our perception of our ability to achieve our personal, and more specifically, our financial goals.
A new year can bring a burst of optimsm
People at barbecues will tell you, beer in hand, this year we’re going to get serious about saving for that big overseas trip, be more proactive about our super investment and we’re looking into to buying an investment property.
Sound familiar? Yep, that’s the January effect. As we return to work or normal routines, we bring the optimism that comes from rest, rejuvenation and time to talk and reflect.
There is a sense of ‘a clean slate’ and we’re motivated to pursue self-improvement and long-term goals.
Harnessing your renewed intention
The window of opportunity for change is small but priceless, if we can harness it. And there’s the rub. Many of us don’t.
Paradoxically, it’s the same sense that anything is possible during a relaxing summer that can sabotage our long-term financial success.
Why? Because the feel-good factor tends to make us overestimate our capabilities, play-down barriers to success and make us less likely to ask for help. We daydream about the future we want but we don’t necessarily make a concrete plan to get there.
Professional advice and support can help you succeed
In her book The Willpower Instinct: Self-Control, Why It matters and What you can do to get more of it, psychologist Kelly McGonigal talks about ‘lemmings’ who fail because they focus on false optimism and ‘trackers’ who focus on incremental outcomes.
Trackers it seems, are willing to invest and give up some control to get more self-control in the long run by outsourcing the important things they want to change but can’t do alone. Think of the personal trainer for fitness, home delivered meals for healthy eating and a qualified financial adviser to achieve their financial and lifestyle goals.
Your FMD adviser is there for you
Research shows that people who have a relationship with a financial adviser enjoy more peace of mind and feel more optimistic about the future. That’s because they can reality check their financial goals and intent with an expert who can help them crunch the numbers and keep them on track.
Not only that, but even more importantly, your FMD adviser and their support team will succeed where many fail - they will get your financial plan implemented and delivering for you.
Is dotted and Ts crossed, and nothing left to worry about as you head for the beach this summer.
So, talk to your FMD adviser if you’re thinking about retiring, downsizing, renovating, topping up your super, starting a business, getting married or divorced, helping the kids or if you have any other financial goals or new year’s resolutions in 2024. We’re here for you and we can help them stick.
General advice disclaimer: This article has been prepared by FMD Financial and is intended to be a general overview of the subject matter. The information in this article is not intended to be comprehensive and should not be relied upon as such. In preparing this article we have not taken into account the individual objectives or circumstances of any person. Legal, financial and other professional advice should be sought prior to applying the information contained on this article to particular circumstances. FMD Financial, its officers and employees will not be liable for any loss or damage sustained by any person acting in reliance on the information contained on this article. FMD Group Pty Ltd ABN 99 103 115 591 trading as FMD Financial is a Corporate Authorised Representative of FMD Advisory Services Pty Ltd AFSL 232977. The FMD advisers are Authorised Representatives of FMD Advisory Services Pty Ltd AFSL 232977. Rev Invest Pty Ltd is a Corporate Authorised Representative of FMD Advisory Services Pty Ltd AFSL 232977.