As the year draws to a close and we continue to soak in the festivities, it is inevitable that we will also be welcoming 2022 very soon. As the saying goes, “new year new beginning”. It is common practice to make use of this fresh start to make new resolutions for the year ahead. Some of these promises are aligned towards making better financial choices. Indeed, according to Syfe’s latest research findings, 94% of people have personal finance-related resolutions and 7 in 10 people want to invest to grow their money in 2022. As a personal finance blog, I will share 3 handy tips on how to make and keep your money-related new year resolutions in 2022.
1) Choose a specific and achievable goal
One of the most common new year resolutions is to “lose weight”. Not surprisingly, many fail to keep such a resolution during the year. That is because the goal is not specific enough. It has to be something more concrete so that one can realistically set their sights on achieving it. Therefore, instead of saying that you would like to “save more”, be more specific and state something like
“I would like to set aside 30% of my salary for savings and investments every month in 2022.”
When a resolution is specific, you would have opportunity to plan exactly how you are going to accomplish it over the course of the year.
In addition, notice that the example indicated 30% instead of 70% of monthly salary to be set aside for savings and investments. This was deliberate because it is important to start with small steps so that the resolution is achievable and not insurmountable. This also makes it easier to stick to the new habits to ensure continued long-term success. Make too lofty a resolution and you might end up biting off more than you can chew.
2) Automation removes obstacles
One way to accomplish your finance-related resolutions is to automate them. This is the easiest way to remove any obstacles that might stand in the way such as temptation or procrastination. The good thing is that technology has made automation very commonplace, and none more than in the realm of personal finance. If you are plan to build up your emergency fund and want to commit to saving 30% of your monthly salary, simply set up a recurring GIRO transfer from your bank account into another savings account. This other savings account can be Syfe Cash+ which provides up a projected 1.5% p.a. return on your cash. There is no lockup, no minimum deposit required and is a great option to consider parking your emergency cash.
Along the same vein, if you’ve built up an adequate emergency fund and are looking to set aside 30% of your salary for investment to start growing your wealth, you can adopt a dollar-cost average approach. The good news is that the robo-advisory scene in Singapore has matured significantly over the past few years. This provides more choices for investors to adopt the dollar-cost average investment strategy. Whether it is the Core portfolio, REIT portfolio or Syfe Select, Syfe allows its customers to automatically transfer a fixed amount at regular intervals to buy more units of their portfolios.
Investors can also use Syfe’s forecast tool to see how much their monthly investments can grow. For example, if your take-home salary is $5,000, 30% each month is $1,500. Over 10 years, your investment in Syfe’s popular Core Equity100 portfolio can grow to $389,217.
The Core Equity100 portfolio is 100% invested in top stocks like Apple, Microsoft, Tesla, Amazon, Nvidia and more.
3) Get Support
As with all new year resolutions, we are usually all fired up at the start of the year and motivation levels are at all-time high. As we gradually segue into the thick of things throughout the year, motivation levels may eventually dip. There is absolutely no shame in that, although it is one of the key reasons why new year resolutions fail. One way to counter this is to have a solid support system that helps the individual stay motivated and accountable.
A support system can be in the form of like-minded friends and family members who have made similar resolutions. Regular check-ins over coffee and meal sessions may help to keep the “fire inside burning”. After all, camaraderie makes sticking to your resolution more fun.
Alternatively, do consider speaking to Syfe’s wealth experts for your finance-related resolutions. Besides offering guidance, Syfe’s wealth experts help to bridge the gap between intent (desire to invest) and action (making the investment).
They are available for a complimentary one-on-one session to help you understand how Syfe’s products can help you achieve your money resolutions. In addition, if you invest AUM of more than S$20K, you will be entitled to a personalised consultation based on your investment goals.
You may also join in their weekly #AskSyfeLive sessions to ask their wealth experts anything related to personal finance and investments.
Make and keep your money-related resolutions
Once the festive season is behind us, it will be an opportune time to think about setting your new year resolutions. A new year heralds a fresh start and hopefully you will find the 3 actionable tips that I have shared useful in helping you to make and keep your money-related resolutions in 2022.
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Disclaimer: This article is written in collaboration with Syfe but the views expressed here are entirely from Heartland Boy. Any reference to an investment’s past or potential performance is not an indication of any specific outcome or profit. Always do your own research before investing. This is not financial advice. This advertisement has not been reviewed by the Monetary Authority of Singapore.