Are You Ready For 2012?

Well are you?

Between mince pies and Christmas pudding - (I don't know about you but I always seem to have leftovers of both) I am setting my stall for the year ahead.  I am looking at my assets and how I can improve on them.  I advise that you do the same.

Whether you are a seasoned investor or completely new to the game, you need to know your starting point for the year and what you wish to achieve by the end of the year.

Buy yourself a little pocket notebook.  Open this up to show two pages.  On the left hand page, write down  your assets.  I tend to use these headings:

1) Money I Have In Property (Property value)
2) Money I have In Pensions
3) Money I have in Precious Metals (Gold,Silver etc)
4) Money I have in Stocks and Shares
5) Money I have in Business Ventures
6) Money I have in the Bank/ Building Society (Including ISAs, Savings Accounts, Current Account)
7) Other (Ie money owed to you, inheritance, other investments etc)
8) Cash in hand

Add these up and put a total at the bottom of the page.

On the right hand page write down your debts:
1) Credit Cards
2) Loans
3) Bank over drafts
4) Mortgages
5) Hire purchase agreements
6) etc

Add these up and put a total at the bottom of the page.

Turn the page and do the simple sum:  Total assets less total debts.

You now have your net worth. (Notice that I do not care a fig for your widescreen telly and your car.  These are not assets, they are things you use. - OK, you could sell your car, but what are you going to do? Take a taxi to the supermarket?)

Now.  Your mission (should you choose to accept it) is to increase this over the next twelve months.  I aim for 20%.  What I do is look at each of the assets and break down the mission into small parts.  I try to work out how I can increase each of these parts by 20%.

Over the last 12 months, I have succeeded in some and failed in others, but my friends, thats the battle.

I am dusting myself off and getting ready for a New Year.

Raise your glasses - and your notebooks!  I wish you a very prosperous year ahead.