11 Investment Resolutions for 2011

Do you want 2011 to be better than 2010?¬† What can you do?¬† A lot … here’s some to start with.

1.¬† Set a Goal.¬† Make it realistic but stretch yourself.¬† Write it down.¬† Without a goal, you’re more likely to spin your wheels.

2.¬† Make a Plan.¬† How are you going to reach your Goal?¬† If you don’t know, you’ll get lost quickly.¬† It is likely you will have to adjust your plan, but without any plan, you’ll not get very far.

3.  Get Educated.  Even experienced investors need to learn.  There are new laws, new markets, and new opportunities.  Join a local real estate investment association, and attend meetings.  Listen and learn.  Read books, attend seminars, sign up for a workshop.  Distinguish between education and a sales pitch.

4.¬† Get Professional Help. ¬† A paid consultation with a tax specialist, financial planner, or an attorney may cost you a couple of hundred dollars.¬† But it could save you thousands! ¬†¬† Most professionals can and want to help you be successful — pay them now, or pay them later!

5.¬† Time Management.¬† Time is money, so don’t waste it.¬† Learn to prioritize, delegate, and be more productive.¬† But schedule time for fun, relaxation and exercise.

6.  Assess your Assets.  Assets are what you use to cover your liabilities.   Use a common sense approach when protecting your assets:  risk management includes responsible property management and adequate insurance coverage.

7.¬† Situational Awareness.¬† Knowing where you are in relation to your investment environment is critical to your success.¬† It’s a good time to take a look around and see what’s changed, and adjust accordingly.¬† What’s different?¬† What’s new?¬† Has your cheese moved?

8.  Identify and Tackle Obstacles.  What is preventing you from making progress toward your Goal?  The first step is to identify them, the next is to eliminate them.  Can these obstacles be removed or managed?  If they cannot be eliminated, perhaps you need to reassess your Goal or your Plan; and find a more realistic pathway.

9.¬† Diversify.¬† We know that it’s foolish to put all of your eggs into one basket, but investors do it anyway — it’s easy to stay within one’s comfort zone.¬† Careful consideration of different types of investments may open opportunities that you may not even knew existed.¬† Be smart, be careful, but be alert to new opportunities.

10.¬† Get/Stay Fit.¬† Planning for the future doesn’t make sense if you don’t have one, or if you aren’t healthy enough to enjoy it.¬† It’s well-established that if you are eating right, exercising and getting sufficient rest, you’ll make better decisions.¬† A healthy lifestyle should be a fundamental part of your Plan.

11.  Invest in the Future.  Volunteer some time with your church, community group, or local youth program.  Make a difference in the life of a young person and help your neighborhood and your community.  Donating your talent and time can be a tremendous investment.  The return can yield greater rewards than all of your financial investments combined, not just for your community, but for yourself!