5 Steps to Increase Your Networth in 2020
This year, 2020, was supposed to be the year for perfect vision, then COVID 19, the tragic events in Nova Scotia, floods in Alberta, oil prices plummeted, and now the murder of George Floyd. With so much bad news, how does one move ahead? How do you ensure everything you worked for is safe and protected?
Looking at the stock market and the fact that businesses are starting to re-open, it may appear the financial storm may soon be over.
OR Have we been given a second chance to make the needed changes?
Here are five steps you need to take now to avoid this and all other financial adversity. While the steps are easy, they are also easy not to do. We are here to help you with the better easy.
STEP #1. START WITH YOUR WHY.
Make sure this is clear. What's your vision? What are your values and life goals? Who are you and who do you want to become? Knowing your why will allow you to double down on what makes you productive and successful, while eliminating the noise and distractions that hinder success.
STEP #2: THE PROPER PERSPECTIVE CAN HELP YOU REMAIN CALM
Money and success are both emotional. You can control what you can control, and it will help you to let go of what you cannot. We have unconscious bias towards the way we feel about money and success. Right now, we are in a very emotional state and investors often make poor decisions when they let their emotions take over.
As Warren Buffet said, “The market is the most efficient mechanism anywhere in the world for transferring wealth from impatient people to patient people.”
STEP #3: FOCUS ON WHAT’S IMPORTANT AND CUT OUT WHAT’S NOT
This step is easier said than done. The human brain is not designed to make us happy and fulfilled; it is designed to help us survive. It’s always looking for what’s wrong, for whatever can hurt us, so we can either fight it or walk away. An undirected mind operates naturally in survival mode and the single biggest threat to your financial well-being is your own brain. The easiest way to help our brain help us is to make good habits easier to do; not so good habits are a little more difficult to accomplish. Having your spending and investing on autopilot will serve you well.
STEP #4: GAIN AN UNDERSTANDING OF HOW MONEY WORKS AND CAN WORK FOR YOU
Do you know what your biggest asset is? Your biggest wealth creator? Look in the mirror. It’s you; you could be the hero. When you know this, efficiency is super important. Now is time for you to diversify or at least get ready for it, but diversification doesn’t mean owning several stocks or funds. In fact, losses in the markets and taxes are two major villains stopping most from financial success. A diversified portfolio consists of several wealth creation strategies that limit loss and reduce taxes.
STEP #5: GET PROFESSIONAL HELP
You can achieve anything when you stop trying to do everything. Statistics show a good advisor will increase your net worth, while a great investor is obsessed with avoiding losses.
When you start your retirement process, you need to have a clear vision of your values and goals. This leads to decisions, which, in turn, leads to results and more personal confidence. From there you can focus on what’s truly important: your career, your health and your friends and family.
Let's open our minds, and more importantly, open our hearts to be there for our neighbors, no matter their colour, religion, or sex. At D H Roberts and Design Your Future Financial, we are committed to changing the world for the better and helping those that help others.
Maybe 2020 is the year of perfect vision after all and we are here to help.
Reach out today, as the first five appointments that mention this article will receive a free copy of the book “the And Asset” by Caleb Guilliams
By Steve MacLellan, P.Eng
Email: steve@thefinancialengineer.ca
Connect with me on LinkedIn here
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