In light of the current pandemic and resulting financial instability, setting goals for your financial future has never been more important. To ensure your financial future is secure, there are a few things you can do now that will allow you to accomplish the financial goals you set for the upcoming year. Take the time to schedule an appointment with a financial advisor who can go over all of your options and help you make the most informed decision.
Broaden Your Portfolio
Instead of choosing just one or two types of investments, spread them out a little. Broaden your portfolio by selecting multiple types of investments. Choosing only one or two can set you up for disaster if neither provides any return. Investing in a few different options will give you more opportunities for growth and less risk of loss over the year. When it comes to investing, diversity is the key.
Long-Term Investment Options
Try to find the best long-term investment options. While it may take longer for the investment to provide a significant return on investment, there is often less risk involved. Certificates of Deposits that are left to grow in interest will return more on your initial investment if allowed to remain in place for a longer period. Divide your long-term investment funds between CDs, real estate, and other similar accounts. You may be surprised at what you get in return.
Evaluate Your Level of Risk
2020 was a shaky year for individuals who were trying to invest in their future. Before you set about creating a financial portfolio for the upcoming year, take a close look at last years’ investments, and evaluate your level of risk. The uncertainties of the previous year may have made you leery of investing at all. Go over every aspect of your finances and try to find different types of investments that make you comfortable. Even if they don’t provide a huge return, it’s a good way to let your money work for you in a way that requires less risk.
Check Your Debt
Being in debt can hamper your ability to invest. Take a few months and try to pay down some of the debt you may have incurred over the past year. The pandemic hurt many businesses, which in turn, laid-off employees forcing them to rely on unemployment. This drastic reduction in income forced many to rely on credit cards for basic necessities. Instead of letting massive amounts of credit card debt drag you down, try to pay off as much of your debt as possible over the next few months. Once you get a handle on how much you owe, you can start to invest in the market again.
Count Your Blessings
It can be easy to be overwhelmed by financial stress and worries. Even in these challenging times, there are still blessings and positives that you can focus on. Being out of work was bad news for everyone, but it offered more time with family. It gave you free time to take up a hobby or learn a new skill. Many people took this time to go back to school and earn a degree or certification. Count the blessings you received. They may be just what you need to renew your motivation.
If you are looking for guidance when it comes to setting financial goals for the future, contact the experts at the Scavone Insurance Center in White Plains, New York today! We can give you the information you need to make the best investment decisions possible!