Many of us make the same New Year’s resolutions year after year. But why? Isn’t the definition of insanity doing “the same thing over and over again, but expecting different results”? The answer (which some of you already know) is that most people don’t stick to their resolutions, and even with the best intentions many of us fall off the wagon in as little as one month (80% in fact). If you, like some of us, already have failed your New Year’s resolution, don’t despair! We have some simple tips for setting (and achieving) a new New Year’s resolution, and a couple of suggestions for new areas to focus on as you revamp your 2020 resolutions.
Perfecting Your NEW New Year’s Resolution
There are a number of reasons why the majority of us fail to achieve our New Year’s resolutions. From the psychology behind the word ‘resolution’ to the unrealistic nature of our goals, few of us set ourselves up for success. Fortunately, Inc. magazine has outlined seven steps we can take when setting a new New Year’s resolution we can actually keep:
- Create a measurable goal.
- Identify clear action steps.
- Set yourself up for success.
- Plan for obstacles.
- Start when you’re ready.
- Track your progress.
- Learn from your mistakes.
Before we delve too deeply into the specifics of each of these steps, however, let’s discuss why we’re talking about setting a new New Year’s resolution in the first place and talk about our recommendation for a new area of focus you may previously have overlooked: your financial future.
Money and financial habits are the biggest source of stress for Americans, according to research conducted by Northwestern Mutual. Many of us do not budget properly. We do not have an emergency plan. We rely too heavily on credit cards, ultimately paying the price.
The result? Poor financial health.
Financial Health: The state and stability of an individual’s personal finances and financial affairs. Source: Investopedia]
Poor financial health bleeds into other areas of our lives, putting a strain on marriages and relationships, and even affecting our physical well-being. In fact, 72% of participants in a Financial Stress Survey conducted by the John Hancock financial institution admitted to “worrying about their personal finances at work,” with “one in three doing that more than once a week.” In 2018, Americans’ credit card debt hit a record high of more than $1 trillion dollars, according to the Federal Reserve. And not only are we drowning in debt, but one in four Americans don’t have “even a single dollar saved for an emergency.”
But does poor financial health really have a tangible effect on us? According to a survey from LendingClub, Americans that report poor financial health also tend to have poor physical health. In fact, these Americans are “significantly less likely to practice healthy physical habits (59% do not get routine check-ups and 60% do not get regular exercise) and are more likely to skip preventative health measures due to cost (38%).” The conclusion? “Bad wealth begets bad health.”
‘Bad wealth begets bad health.’
Indeed, according to the journal of Anxiety, Coping and Stress, the biggest negative impacts of poor financial health include:
- Depression and anxiety
- Ulcers and digestive issues
- High blood pressure and heart attacks
- Disrupted sleep
Even if more Americans are beginning to recognize the importance of financial health, most financial resolutions aren’t helpful. Resolving to “manage finances better,” “rethink financial habits,” or “save more money,” for example, is self-defeating. These kinds of resolutions aren’t measurable, don’t set out clear steps to take in order to achieve your goal, don’t anticipate obstacles, and don’t allow you to track your progress in a meaningful way. Essentially, we’re setting ourselves up for failure rather than success.
A proper resolution should not be summed up in just a few words. If possible, think of resolutions as goals and establish specific tools to achieve them. Set a timeframe, make sure your goal is measurable, keep track, identify ways to keep yourself accountable, prepare for obstacles–they’re inevitable!–and perhaps most importantly, start when you are ready. Choosing an arbitrary start date like New Year’s day doesn’t make sense if you haven’t put a plan in place to achieve your resolutions. Don’t force yourself into a failing situation simply because of social pressure.
What Is a Healthy Financial Portfolio?
A healthy financial portfolio is a diversified portfolio. But what is a ‘diversified’ portfolio? Simply put, diversification is “a risk-management technique that mixes a wide variety of investments within a portfolio.” As NerdWallet puts it, diversification means investing in “different assets that aren’t highly correlated, meaning they don’t move in lockstep. […] Spreading your money around reduces overall risk by ensuring your portfolio’s performance isn’t too dependent on any one particular asset.”
With that in mind, we want to discuss how real estate investing fits into a diversified financial portfolio–particularly because this frequently is an overlooked investment opportunity. Real estate investing is a great way to diversify your finances, earn more, and ultimately save more. Without help, however, learning the nuances of real estate investing can take some time.
That’s why we founded HappyNest–to provide experienced real estate investors and beginners alike with a simple, easy-to-use way to take advantage of the benefits of commercial real estate investing and provide the education needed for each of you to make the most of those investments.
Portfolio Diversification: Varying an individual’s investments by type (real estate, equities, bonds, etc.) in an effort to reduce the risk associated with investing.
“Another term for ‘diversification’ is ‘asset allocation,'” Michael Crawford, principal and founding member at Nationwide Wealth Management, has said. “Many financial advisors will divide investments by equities and bonds, depending on risk and age. There are other asset classes to consider, including private equity, hedge funds, real estate, and collectibles.”
That’s where HappyNest comes in.
Achieve Your New New Year’s Resolution This Year with HappyNest
HappyNest simplifies real estate investing to make it easy for anyone to diversify their portfolio. How do you get started? Simply download the HappyNest app to your Apple- or Android-based smartphone, connect your bank account (securely), and purchase shares of a diversified real estate portfolio.
The real estate investment team at HappyNest vets properties under strict guidelines to ensure they add value to the real estate portfolio. Specifically, HappyNest REIT purchases properties that have long term leases, strong tenant credit, and rent growth. This investment strategy creates a strong real estate portfolio that will help keep your real estate investments and financial portfolio sound.
Done right, real estate can be incredibly profitable (in fact, 84% of real estate investors would happily make another investment).
What Will HappyNest Actually Do For Me?
HappyNest is a mobile app that can allow you to unlock the potential of real estate investing, starting with just $10. Download the HappyNest app and use your smartphone to experience the stability, tax benefits, and wealth creation traditionally reserved for those of advanced means. With us, you can own an equity interest in a portfolio of high-quality commercial real estate and continuously receive dividends for years to come.
Download HappyNest for Apple or Android and experience an app that reflects your priorities. Don’t miss out on the tools you need to establish healthy financial habits and accomplish your goals.