New Year's Resolutions For 2010

Nativity plays, report cards, Uncle Willy's Christmas parties and kids at home can only mean one thing. December is here! A happy time of the year to focus on what's really important. Family, Friends and Loved Ones.

Without trying to dampen your holiday enthusiasm now is also the right time to start considering your New Year financial resolutions for 2010. The National Credit Act, coupled with the credit squeeze imposed by all the banks worldwide has created a paradigm shift for money management. The recent financial debacle that Dubai is experiencing is yet another example of 'living above one's means'.

We mentioned the wonderful book entitled The Millionaire Next Door in one of our recent Communiqués, which is a study of how people become wealthy. One of the most important points raised is that many people who make good income each year and spend it are not getting wealthier. They are just living high. People with a great deal of wealth simply live differently; wealth is accumulated and not spent.

Wealth management as we define it is an integrated process for helping clients manage their wealth. It usually involves a diverse range of services, depending on the needs of each investor, but may well include investment management, financial planning, retirement, estate planning, tax planning, asset protection and cash flow and debt management.

It is essential to understand that not all financial paths lead to happiness. If you want to find happiness, you must realise that financial planning is a 'doing' word. Financial planning involves setting goals for your financial life, developing a plan of action to accomplish these goals and then 'doing' those things that will help you achieve financial success. Start by answering the following questions:

• Is financial discipline required to meet your financial goals?
• Is saving and investing needed to make your financial plan work?
• What are the necessary components of a financial plan?

It might be the last thing you feel like doing, but with a bit of effort now, you could begin 2010 with clean set of goals. With personal financial planning, you can get your money to work for you.

Recent research shows that while 52% of participants in a resolution study were confident of success with their goals, only 12% actually achieved their goals. Men achieved their goal 22% more often when they engaged in goal setting, a system where small measurable goals are used (lose a pound a week, instead of saying 'lose weight'), while women succeeded 10% more when they made their goals public and got support from their friends.

Start the 'doing' and set some goals!

Silke Financial Services are skilled risk and investment strategy consultants that provide a unique service offering not available elsewhere in the marketplace.