With the current state of markets and global economy most investors/clients probably feel anxious and defeated, especially if you have been investing faithfully keeping your eye on your long term goals. An appropriately diversified portfolio is the best approach to achieving your long-term goals.
This is a time where you have to shift your focus to other parts of your financial life, for example:
- Living below your means
- Controlling impulsive purchases
- Delay that overseas holiday or vehicle replacement
- Keep saving
- Maintain the value of your home (maintenance)
- Reduce your levels of debt (strive to be debt free)
- Analyse your budget and cut out unnecessary spending
- Limit spend on items like eating out, movies, gifts, home furnishings, toys, electronics
- Avoid buying take outs every day for lunch, rather pack lunch to take with you
- Limit or avoid your credit card
- Make sure you pay the total spend on your credit card every month, and not the minimum amount due
It is also important that during these times you maintain a healthy lifestyle, manage stress levels, review your financial plan with your financial Advisor and make adjustments where necessary. This will help you from making emotional decisions regarding your finances as well as changing your long-term investment strategy if it is not necessary.
By Grace Van Zyl
Financial Life Strategist / Senior Managing Partner