The past year has been full of ups and downs, and the same can be said about the market. It is through these ups and downs that we can create better versions of ourselves. We have learned to push forward through the ups and downs and bring some stability to our lives. If we say that 2020 has been a crazy year would probably be an understatement. From a global pandemic to a national economic crisis, the past nine months have been among the most challenging and stressful many of us have ever experienced
Markets were already at all-time highs during the initial stage of 2020, and then in February and March the COVID-19 pandemic hit the world hard. Markets crashed and panic seeped in, but before long the recovery was on and some stocks shot sharply higher. As we stand today, we’re back to all-time highs despite a terrible economy by many measures. Who could have predicted that?
But if there’s one good thing that did come out of 2020, it’s that we learned some important investing lessons that we can carry with us. And, in some ways, our lives will be changed, perhaps permanently. But as an investor, what lessons did you learn from 2020?
Try these ideas and see for yourself.
- Make savings a priority and spend within your means
- Plan your financial goals and determine risk appetite
- Consult a Financial Advisor once a year for portfolio performance review
- Create a safety net of 8-10 months of expenses as per your circumstances
- Keep a comprehensive list of all asset details. Also ensure to update bank account details, keep one common email address & contact details, update nominee details
- Ensure you have adequate term insurance/family floater cover
- Stay committed and use SIP to beat volatility
- Invest in well-regulated inflation-beating products
- Diversify your investment portfolio across various asset classes
- Refocus on your goals periodically
- Eliminate debt, never live on credit
- Draft a Will to distribute your wealth among your successors
So, as you look ahead to the New Year, take a moment to gain a fresh perspective on your investments. Then plan ahead to meet your financial goals and prepare for unexpected events. After all, your hard-earned money deserves to earn you more!
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