Your Top 5 Financial Goals For 2019
The New Year is upon us – time to look back on the past year and plan for the one ahead. That means setting financial goals for 2019.
Not just the obvious ones like “optimise your portfolio”, which it’s worth revisiting with fresh eyes every year, but something a little more specific.
Here are five goals we think you might want to consider.
Plan to Do the Work You Love
For some lucky people, this is already a given. Either you got into a career or sector that fascinated you or you’ve developed a passion for it as you went along.
But for many more, work is what we do for a pay cheque and the security it brings. Even among high earners, many people aren’t content with their working lot.
If you don’t do something you love, then now is a good time to plan for changing that. Are there jobs out there that you would love to do and that offer comparable pay to what you earn now?
Could a shift of sectors get you closer to that goal? Or could you find ways to make your current job more like what you want?
If the thing you love doesn’t pay well, then this means building up the savings and investments to ensure financial security alongside a pay cut, so you can get more out of life without hurting yourself financially. Which connects into the second goal…
Plan for Early Retirement
Some people choose an early retirement, others have it thrust upon them by ill health or changes in the economy.
Whether or not it’s something you dream of, it’s worth planning for, if only as a backup plan.
For many people, retirement – especially an early retirement – means planning for frugality. But if you’ve planned for your retirement income, including making investments that will provide you with the income you want, then there’s no need to worry.
Early retirement can become the opportunity to focus on what you’re passionate about – friends, family, travel, hobbies, whatever gets you out of bed on a non-working day.
Invest in Line with the UN Sustainable Development Goals
For the ethical investor, it’s worth stepping back to see how your investments can do the most good. And right now, the answer lies in the United Nations Sustainable Development Goals (SDGs).
Set by the UN General Assembly in 2015, the SDGs provide a global framework for action towards a better future, covering a wide range of social and environmental issues.
They’ve become the compass that guides the work of NGOs and determines which of their projects get the best funding. By creating a common vision, they’ve got people all over the world pulling together in the same direction.
When choosing ethical investments, look at how the companies line up with the SDGs.
If their work contributes to one or more of these goals then they’ll be part of the biggest concerted humanitarian and environmental effort in human history, where the combined efforts create something bigger than the sum of its parts.
Plan for Death and Aim to Live
Death is like a racist uncle coming to the family Christmas – no-one wants to think about it, but we’ll all have to face him in the end. So make this year the year you prepare for death, then plan to avoid it as long as possible.
Planning for death means putting your estate in order. Make sure that your will clearly sets out what will happen to your wealth when you depart this life.
Talk to family and other beneficiaries so that they know what’s coming and can prepare for it. Make sure that there’s money available to pay any taxes on your estate, or clear instructions for where that money will come from.
Consider life insurance, if your family needs the extra financial protection it provides.
And as soon as you’ve done that, fight off the morbidity by doing a couple of things to ensure you stay alive. Invest a little money in exercise equipment or new running shoes. Have a check-up with your doctor. What’s the point in all that wealth if you’re not around to enjoy it?
Prepare for the Unpredictable
While death is a certainty, other things remains completely unpredictable, and that feels more true now than ever. We live in politically turbulent times, from Brexit to the Trump presidency. We can’t predict their outcome, so it’s best to prepare for a few options.
For the big events creating uncertainty where you are, have a look at the most likely outcomes.
Analyse how they would affect you financially and work out how you can benefit from that rather than being hurt by it.
Then work out what would give you the flexibility to choose between these plans when the time comes.
It’s impossible to be entirely prepared for the unpredictable.
But by having a plan for the most likely outcomes, you’ll at least have some solid options around which to improvise
Paul Connolly
Paul Connolly has been a journalist for more than 20 years, as a reporter and editor for Argus Media, Reuters, The Times, Associated Newspapers and The Guardian. He has covered Islamic Finance for Reuters in the 1990s. Paul has since helped launch three newspapers, as well as reported from Tokyo, Los Angeles and Stockholm.
