By Shane Pinkerton

In the past two years, the Global Economic Crisis has dominated attitudes to investing and the sentiment of investors has been one of concern, caution and a wish to get confirmation that things will improve. However the Global Economy now appears to be emerging from the crisis and 2010 is predicted to provide global growth again.

Australia has managed to avoid the worst of the global recession and as recovery develops, opportunities arise. This makes next year a good time to revisit your personal financial plan. If you do not have a financial plan, the expectations of recovering in 2010 make next year a good time and a good reason to get started.

1. Know your mind set as well as your goals

It’s difficult to remain inspired if you don’t know what you are working towards! Goals help you focus your efforts and give you a reason to manage your money better.

2. Pay yourself first

If you let wealth creation be your last priority you are guaranteed to fail. Make your financial goals a top priority.

3. Automate your success
 

Set up an automatic investment strategy, so you can forget about investing and focus on the more important things in life!

4. Harness the power of compounding

Time and compounding work together to increase your wealth dramatically – and the longer you give that process time to work, the more your wealth increases.

5. Understand risk and select appropriate assets

Match your investment timeframe to your risk profile and investment strategy. Understand that risk changes over time.

6. Diversify

Your financial future is too important to put in the hands of one property or one company share or even one managed fund. A Fiducian Financial Adviser helps to provide the diversification required to protect your wealth and increase your investment returns.

7. Invest in yourself

One of the best investments you can make is in your own financial education. Be aware of what’s happening in share markets and in your superannuation fund. The share market is complex and sophisticated but the underlying principles are more straightforward. Investing a little time to educate yourself will pay big dividends.

8. Don’t worry about the ‘right time’ to start investing

Don’t be paralysed by fear. Seek strategic advice, choose a sound investment, and start investing. A sound investment strategy takes into account changes in the market or your personal circumstances.

9. Stay on track

Review your investment strategy on a regular basis to ensure you are maximising your wealth opportunities.

10. Seek professional advice

Expert advice helps you to get ahead faster by making the right choices. A Fiducian Financial Adviser can offer you professional, independent advice based on your own unique set of personal circumstances. Planning for your success in 2010 may be the best thing you ever do.

Shane Pinkerton is an Authorised Representative of Fiducian Financial Services Pty Ltd and is located at Bunker Road Adamstown. For information 4965 3966.