It is that time of the year again! Resolutions time! You know, those things you promise to do on the first of January but have forgotten about by the twenty first.
In your personal life, making practical, useful resolutions and keeping them is great …but resolutions are probably even more important when they relate to property – assets typically with a high value.
This blog looks at 5 powerful and effective New Year’s resolutions for anyone looking to buy a property…whether as a home or an investment.
If you are not doing the things set out in the resolutions you are making big mistakes as to how you go about things. Make the changes now to get yourself on the right track.
Remember that resolutions are not just for the start of a year. They are relevant throughout the year and you can start them at any time. Whenever you read this blog, you are good to take on the resolutions identified.
The fundamental thing with resolutions is of course – how on earth do you keep them?
There is no magic answer but it definitely helps to:
- Write down your resolutions
- Break them down into clearly described parts or sections
- Review your progress without fail at least once a week
- State the attainment period, date or event for the resolution to be considered successfully achieved.
Set up at least two reminder systems to ensure that you never overlook a single review.
1. Check your bank balances every day
Checking your bank account balances daily is probably the most important thing to achieve good money management.
Knowing the exact amount in your accounts, as well as impending receipts and payments, keeps you well and truly on top of your finances, enabling you to pay all your monthly payments (including your mortgage) on time without getting into difficulties.
Having a thorough understanding of where you are financially every day helps you to pre-empt issues and problems, allowing you to plan your way out of cashflow difficulties and avoid going overdrawn and incurring bank charges or penalties.
Are you sitting on a mortgage time bomb? (the dangers of interest only mortgages)
Interest only or repayment? (which of these two mortgage types is best for you?)
Repayment mortgages (the nature and benefits of repayment mortgages)
2. Personal property plan
Draw up a personal property plan setting out your property goal, identifying do-by dates and figures, as well as setting out stages or steps.
The more specific your plan, the better you are likely to monitor progress and move forward…on account of the satisfaction of completing specified stages or milestones.
3. Boost your property education
Think of property education as your working capital – treat it as the personal asset or resource you need to be a knowledgeable, efficient, effective and successful property buyer and owner.
The more you know the better you should be able to identify and minimise risks and take opportunities.
Identify your educational targets along with a clear timescale for attainment.
PROPERTY MAINTENANCE & REPAIRS
Don’t ignore maintenance & repairs (the first level of protection for your property)
Budgeting for repairs is smart (how to be prepared for surprises and big bills)
Property maintenance checklist (what to do to keep your property in tip top condition)
4. Reserve funds
Make sure you have reserve funds to pay your normal household expenditure for six months in the event of losing your earnings or income.
For every property you own subject to a mortgage, your reserves should be enough to cover mortgage payments for six months.
Look to secure additional income if you are not bringing in enough to meet your reserves target.
If your reserves are depleted, try to top them up as soon as possible.
5. Leverage people in the know
A key ingredient for property buyer success is being able to draw on the resources of property people with knowledge, experience or expertise you lack.
Develop a “power team” of experts, professionals and advisers relevant to your property goal and ensure that you engage your team members whenever necessary or desirable.
Try to ensure that your team includes an “accountability partner” – someone who can help you to action your property plan and achieve your property goal.
An accountability partner can also help you keep your resolutions!
Do you make resolutions as a rule? How easy do you find it to keep them? What’s your tip for keeping them? Please leave your comments and questions below.
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Rebel Property Coach
My website is: www.rebelpropertycoach.com