(03) 9020 2905I don’t believe in crystal balls. They’re trouble, like poking Chopper Read in the eye. Exact predictions are for crazy people. And liars. Nobody knows what’s going to happen this year.
So, in the great Australian tradition, I left mine out on the footpath years ago and somebody took it. I hope it’s causing them grief too.
I try to operate irrespective of market or economic forces. So, regardless of undulating markets or interest rates, here’s what Gen Xers should do in 2011.
One: Build your personal brand. Gen Xers are approaching, or are in, their 40s – the most powerful decade of their lives. It’s when fortunes are made. Or not. Creating the right professional mindset is critical to succeeding.
Two: Remember investing is long term. Don’t punt or try to time markets. Fortunes are made over years and decades, not weeks and months. Plan to get filthy rich … slowly.
Three: Don’t be scared off investment debt for quality investments. Many people irrationally fear debt, including investment debt. Debt is not the devil. Used correctly, debt is a legitimate and powerful wealth creation tool.
Four: Don’t panic yourself into a fixed-rate home loan because of rising interest rates. Fixed rates can give you peace of mind, but variable rates will largely be cheaper.
Five: The best financial plan will be cactus if you or your partner dropped dead or couldn’t work again. Get your insurances in place.
Make 2011 the year you carry through on that promise to improve your finances. If you started years ago, then take it to the next level this year.
Bruce Brammall is the author of Debt Man Walking (www.debtman.com.au) and a licensed financial adviser.