2016 is approaching its end and 2017 is on its way. How did you do financially in 2016? Are you financially prepared for the uncertain 2017?
My 2016 has been quite good so far – still keep my job although no raise (smile); renovated a property and raised rents for all; made decent returns from Kiwisaver (New Zealand Superannuation Fund) and other managed funds (mainly NZ bonds and NZ REITs); and made very handsome profits from FX trades.
Just like no one I do not have a crystal ball and therefore I cannot “foretell” what will happen in 2017. I cannot assure you that USDJPY will shoot through the 120 ceiling. I am not certain that S&P 500 and Dow Jones 30 will make and stay above new records. I am not sure if gold will plunge through the $1,000 per ounce; and oil will go above $60 per barrel. And I cannot say whether the property price in New Zealand will be falling by 10-20% in 2017!
So how the heck can I at least protect my nest eggs, or better maximise my profits/returns, if I seem know nothing at all about the future? The answer to this is to prepare. And the prerequisite to that is financial education.
Hey Ernie, you are not talking shit right? No of course not! Preparation beats Prediction – this is my favourite quote. Can I provide with some examples? Sure, you may refer to some previous posts of mine here:- Blog #1, Blog #2, and Blog #3. From these you’ll learn how I made profits from gigantic black swan/surprising events in 2016, and you’ll understand what I meant by “Preparation beats Prediction”.
Ok I’m done with boasting or bragging (grin), let’s move on to some personal fiance tips that you guys may find useful. This article short-lists some tips to financially guide you through 2017, and they are listed as follow:-
1 Write a plan
Break it down to a list of achievable, measurable goals. “Save more money” isn’t enough – you need to set out how much you want to save each week or month, and what you want to achieve by a set date.
2 Pay down your debt
If you owe any credit card or personal loan debt, put as much money as you can into paying that off first.
3 Check your Superannuation/Pension
If you are not sure what type of super fund you are in, check in with your provider to find out.While you are there, work out how much you are on track to save at 65, and what income that might deliver.
4 Set up a savings account
Even if you are paying down debt, it can be a good idea to set up a savings account to provide a buffer for emergencies.
5 Reconsider whether home ownership is your thing
In my humble opinion home property is not an investment nor an asset. Home ownership should not be a life goal. And climbing up a property ladder is not the only way to become financially successful. However many people disagree; many do not even know the difference between an asset and a liability. If you wanna know more about these debates before your 2017 plan, please feel free to read these posts – blog #4, blog #5, blog #6, blog #7
I’ll be working through this Christmas and the New Year to save my annual leave. I’m gonna take 3-4 weeks off to South Island of New Zealand for a vacation and a photography trip. I may go buy a iPhone 7+ before the trip, so that I can execute faster FX trades even though I’m on holiday. And of course all these will be paid by the FX gains.
If the property price in Auckland New Zealand had a plunge by 10-20% in 2017, I’ll be buying 1-2 stand-alone houses. I’m expecting to gain mid-high 5-figure profits from FX next year, regardless of the direction NZD is moving.
Finally, I wish you all a very merry Christmas and a very festive and prosperous 2017!
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