It is that time of year when all the prognosticators are out giving you their best guess as to what the future holds, so I thought I’d give you mine. Unlike most forecasters, I believe my predictions will come with a much, much higher success rate.
The more money you save, the less financial stress you’ll have. Too often people spend much more time watching the markets instead of what they can control –their savings rate.
The more you automate your savings, the more likely you are to reach your retirement goals. Setting up automatic transfers to your savings and investment accounts can help you save consistently. Splitting your paycheck into more than one bank account is a great start.
The more you understand your spending habits, the better you can control them. Tracking your expenses can help you identify areas where you're spending more than you need to.
The more you prioritize experiences over material possessions, the happier you'll be in the long run. Studies have shown that experiences tend to bring more lasting happiness than material possessions.
The more you invest in your education and skills, the more valuable you'll be in the job market. Investing in yourself can lead to higher earnings and greater job security.
The more you plan for the unexpected, the less stress you'll experience. Having an emergency fund can help you cover unexpected costs, such as medical bills, repairs or disruptions to your income. Maintaining 25%-50% of your annual take-home pay in the bank (earning good rates) will give you more than peace of mind.
The more you diversify your investments, the less risk you'll take on. Diversification can help you protect your portfolio from company and asset class specific risks.
Nothing will pay more dividends than loving others. If the stock market or economy are in the tanks, do something nice for someone else. Win-win.
The more you seek professional advice, the more informed your decisions will be. A qualified financial advisor can help you develop a personalized financial plan and make informed decisions about your investments. Don’t confuse a qualified financial advisor with a salesman. Too often the salesman looks more the part on the surface. Look at credentials.
The more you practice patience and discipline, the more likely you are to achieve your financial goals. Reaching your financial goals takes time and effort. Nothing derails a good plan more than impatience.
The more you focus on your long-term goals, the less likely you are to make impulsive decisions. Keeping your eye on the prize (often retirement) can help you stay on track and avoid making costly mistakes.
The more you communicate with your loved ones about your financial goals, the more likely you are to achieve them. Talking about your finances can help you stay accountable and get support from your loved ones.
The more you give back to your community, the more fulfilled you'll feel. Helping others can bring a sense of purpose and satisfaction.
The Detroit Lions will be Super Bowl Champions. The afterparty will be huge.
There you have it – my 2025 (or insert any year in the future) predictions.
For those of you disappointed I did not include a stock market forecast, my answer is and always will be…10%. Unfortunately, no one has the ability to predict the unpredictable - although I am aware many make a career out of acting like they can.
Ken Duetsch
