As people from Quebec, Montreal, and around the globe welcome the excitement of a new year, personal resolutions often center around financial health. Building wealth, saving more, and earning more usually top the list. However, are those just wishful thinking, or is there a blueprint to make them a reality?
To help answer this, Jean Francois Desormeaux shares thoughts on the importance of building a strong portfolio in the coming year.
Saving More and Earning More: The Groundwork of Wealth
Two components of wealth development stand paramount when discussing the foundation of wealth development — saving more and earning more. Although they might appear individualistic at first glance, they are interconnected strands of wealth creation's DNA.
As Desormeaux puts it, "Saving accrues capital that can be directed towards investments, generating additional income. And earning more simply implies having more to save." Essentially, wealth-building New Year’s resolutions should concentrate on nurturing this synergistic duo.
Setting Realistic Resolutions
Desormeaux emphasizes the importance of grounding resolutions in reality. Adopting a SMART goal-setting approach (Specific, Measurable, Achievable, Relevant, and Time-Bound) ensures your goals are not only ambitious but also practical.
Suppose you aim to increase your savings. Ask yourself how much you want to save and by when. Is it feasible, given your income and expenses? And finally, how directly does achieving this goal contribute to your wealth-building endeavor? By answering these questions, you can sculpt resolutions that challenge you and are within your means to achieve.
Prioritizing Savings
Desormeaux recommends starting your wealth-building journey by establishing an emergency fund, preferably one that can cover at least six months of living expenses. This fund protects you during sudden financial crises, thus mitigating the risk of running into crippling debt.
Following this, Jean Francois Desormeaux advises implementing a 'pay yourself first' principle. Dedicate a certain percentage of your income directly into your savings before spending on other expenses. Automating this process can help ensure consistency and take the mental stress out of saving.
Boosting Earnings
Equally essential to wealth building is enhancing your earning capacity. The digital age offers many opportunities for supplementary income outside conventional ways.
Desormeaux suggests exploring passive income sources such as investing in stocks or rental properties or engaging in peer-to-peer lending. If you have a flair for creativity, try freelancing, blogging, or selling digital products to boost your income.
Also, don’t overlook growth opportunities within your main income source. This may involve seeking a raise, striving for a promotion, or upskilling to increase your market worth.
Embracing Frugality
Contrary to popular opinion, frugality isn't about deprivation — it's about getting the best value for your money. Desormeaux advocates for thrifty habits that align with the 'save more, earn more' mantra without curtailing your enjoyment of life. As we enter the New Year, cultivating a lifestyle promoting savings while still enjoying the things that matter most to us is worth it.
The Final Word
With these insights, it's clear that our financial resolutions should be tailored to our unique circumstances. A strategic approach encompassing savings, earnings, and frugality is key to effective wealth-building in the coming year. As we bid farewells to the past year and welcome the promise of the new one, we must take control of our financial destiny.
Mr. Desormeaux firmly recommends and emphatically advises seeking the guidance of a professional in any wealth-building endeavors for the year 2024. So, let's step into this New Year equipped with the right knowledge and resolution to take us to new heights of financial prosperity.
