The new year offers a unique opportunity for everyone to reflect on their personal finances and financial planning goals in a creative way. One way to do this is through understanding the animal presiding over that specific year according to the Chinese zodiac. The Chinese new year starts on February 16, 2018, and it is the Year of the Dog.
According to Chinese astrology, the canine symbol is described as independent, sincere, loyal and decisive. The dog does not shy away from difficulties and is responsible, clever and brave. There is a saying, "you can't teach an old dog new tricks." But bear in mind, challenging ourselves helps us to become stronger and more financially savvy.
Use Sensitivity and Stubbornness to Your Benefit
One challenge for people is they can be very sensitive. In business and finances, it is important to understand everyone's connection to others, not only in the office but in the business world. Show appreciation for your clients and staff, they are the ones who deal with customers. Use your ears to listen to what other people are saying. Turn being sensitive to being empathic.
Dogs are decisive, they know what they want and are not willing to cave in. Being stubborn is often seen as negative, but it means you are good at solving problems or making decisions quickly. This is great in the ever-changing business environment. People with this characteristic know what they want and don't see any goal as impossible.
Do Some Financial Spring Cleaning
While winter still looms, it is not too early to think about spring. In the world of finances, this is the perfect time to spruce up money matters. It is torture thinking about the cluttered receipts, checkbooks and other financial messes pushed to the corners of our minds. Find out your credit score and obtain a credit report to see the big picture. This will determine what needs to be cleaned up and the state of your financial affairs.
Did circumstances change in your household over the past year? Did you start a new job, have a baby, launch your college grad into the real world or need a medical procedure? Consider projecting your expenses for the next six months and update your household budget accordingly,
When there is a high volume of debt, it might be tempting to attack the higher amount such as a credit card bill or student loans. There is a financial strategy called the snowball plan. Figure out what you owe, pay off the smallest balance first and pay the minimum monthly balance on the rest of the debt. By paying off the smallest debt, you will feel more motivated to take care of the rest of the mess. (For related reading, see: Debt Avalanche vs. Debt Snowball: Which Is Best for You?)
Don't Let Your Conservative Side Keep you From Taking Financial Risks
The dog's weakness is being conservative. It is good to hold on to morals, traditions and ideas. Real-life canines often hide toys or treats in a special place so they have a hidden supply when needed. While it is great to save for a rainy day, taking some risks is not a bad idea. There are wonderful financial and investment opportunities out there. This is where being decisive works to the dog's advantage. While trying to save, they can make quick decisions about what is a legit and promising investment.
There is a saying “Do not to let the tax tail wag to dog”, which means don't base financial decisions on tax consideration. There have been some recent tax changes, which goes to show it is important not to put off tax-saving opportunities. If you are interested in investing in a smaller company but are concerned, think how this company could eventually grow into a larger entity. Seek professional advice since tax laws can be difficult to understand. Ask yourself: What is the anticipated investment return will you get with no tax benefit and how does it equate to similar investments but with smaller risks?
Utilize your positive characteristics and challenges in the coming year to make 2018 the best year ever.
(For more from this author, see: An Introduction to Asset Allocation.)
cr. https://www.investopedia.com/advisor-network/articles/every-dog-has-its-day-and-2018-animal-has-year/
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