It's been an unusual end to one year, and start of another.
The New Year's Eve celebrations looked the same as ever, but felt different across a lot of the country, particularly on the Eastern Seaboard.
The usual 'new year' media puff pieces were swamped by terrible headlines and horrific photos as people struggle to come to terms with the devastation (and, tragically, deaths) that have come with the current bushfire crisis.
To those who have lost loved ones, we grieve with you. We desperately hope there are no more lives lost. To those who have lost property or living in the black shadow of approaching fires, our thoughts are with you. We hope you remain safe, and your property is spared.
With that background, it's challenging to know how to proceed. For many, reading about investing right now seems unimportant. Others reasonably figure it's not an either/or proposition.
I was going to write a 'year in review' article a couple of days ago, but it just didn't seem right, so I didn't. I'll come back to it in the next week or two.
So, with sensitivity, we're going to continue our regular programming. If now's not the right time for you, maybe just keep this article and come back to it when it feels right.
And, whether now or later, we hope these New Year's Resolutions will help you make the most of your finances in 2020 and beyond.
We don't know what 2020 will bring, by the way — just as we didn't know to expect very, very good returns on the ASX in 2019.
There are reasons to worry now… just as there were this time last year. And staying on the sidelines would have been very expensive, in terms of missed opportunities.
So I don't make predictions. I'm asked, regularly, but my answer is more honest than most: "I don't know".
What's an investor to do, then?
Focus on the long term.
Focus on your process.
Let time smooth out the lumps and bumps of market volatility.
Do the right things, at the right time, and let the results look after themselves.
Speaking of which, a few years ago the team and I created a list of New Year's Resolutions, to help our readers and members navigate choppy investment waters.
They are, we hope, a touchstone of Foolish investing — the proverbial calming influence that, even when you're feeling punch drunk, you can hang on to. They are:
Foolish New Year's Resolutions
1) I will live below my means — spending less than I earn.
2) I will save money into a rainy-day fund so I'm ready for what life might bring.
3) I will pay off my credit card debt, and only spend what I can pay off within the interest free period each month.
4) I will regularly add to my investment account.
5) I will invest money I don't need for at least 3–5 years to build my nest egg.
6) I will learn more about investing, taking control of my financial future.
7) I will invest in quality businesses, buying a slice of the company, not just a code on a screen.
8) I will buy shares in a company with the intention of holding them for the long term.
9) I will sell when my investment thesis fails, the company is overvalued or I have a better idea.
10) I will avoid anchoring my decisions to the price I paid for my shares.
11) I will remember that the market can be moody and over-react, both on the upside and the downside.
12) I will expect volatility, and I won't let it spook me into selling. Indeed, volatility can offer me great opportunities!
13) I will let the market offer me prices (be my servant), not dictate my mood or actions (be my master).
That, when it boils down to it, is what we think successful investing is all about. Both a positive set of actions you can take today (and throughout 2020 and beyond), but also something you can come back to when you're feeling uncertain, scared or despondent about your investing.
I originally created them for members of Motley Fool Share Advisor. I also created a one-page pdf version that's easy to print out and keep handy. You can find that version, here.
On behalf of the entire team here at The Motley Fool, I want to thank all of our readers and members for being part of our (capital-F) Foolish community in 2019.
And we want to wish you a safe, happy and prosperous 2020. May it be a year of learning things worth knowing; growing mentally, emotionally and financially; enjoying things worth doing; and sharing all of that with those you love — family and friends, new and old.
Fool on!
