Set clear financial goals
The first step in getting financially fitter is to set clear, but achievable goals. Whether your goal is to save for an emergency fund, invest in stocks, or generate passive income, it's important to know where you're going. Your financial goals will act as a roadmap for all of your financial decisions throughout the year.
- Define your goals: Determine what you want to achieve. Do you want to generate passive income, reduce debt, or prepare for major life events?
- Make them specific: Instead of vague goals like "save money," specify the amount or percentage you aim to save by a certain date.
- Set measurable milestones: Breaking large goals into smaller, manageable chunks will make them less overwhelming and easier to track.
- Make them realistic: Your goals should be challenging but attainable, considering your income, expenses, and other obligations.
XTB offers a wealth of educational resources and expert market insights to help you align your investments and trading strategies with your financial goals. Led by our Research Director, Kathleen Brooks, we offer in-depth market analyses and live market reports, ensuring you stay well-informed and equipped to make strategic, data-driven decisions. To stay informed with the latest news, be sure to enable notifications on both your mobile device and the app.
Educate yourself about financial markets
Knowledge is key when it comes to making informed financial decisions. XTB provides a comprehensive learning hub that covers all the essentials of financial markets, from beginner to advanced levels. Whether you're interested in stocks & ETFs, commodities, forex, or CFDs, XTB offers the necessary educational tools to help you understand these markets.
Take advantage of our step-by-step guides on our Youtube or educational section on the website or app that walk you through different aspects of trading and investing. You also have the ability to access daily and weekly market reports that give you up-to-date information on market trends, potential opportunities, and risks, and informative eBooks.
Being financially fit means understanding the tools at your disposal, and XTB’s educational content can give you the confidence to start trading or investing with a well-rounded understanding of the markets.
Build an emergency fund
Starting the year financially fit means securing your future with a solid safety net. One of the first things to focus on is building an emergency fund. This fund is crucial to protect you from unforeseen expenses like medical bills, home repairs, or a sudden job loss.
It is recommended saving at least three to six months' worth of living expenses in an easily accessible account. It's important to maintain liquidity in a traditional savings account or short-term investment vehicle for your emergency fund. This ensures that the funds are available when you need them the most.
Invest with purpose using XTB
Once you have your emergency fund in place, it's time to start growing your finances. One of the most effective ways to do this is by investing in the financial markets. XTB provides over 6100 trading instruments, from stocks and ETFs to forex and indices, making it easy for you to diversify your portfolio and maximise your returns.
Consider the following investment strategies:
- Long-term investing: If you're looking to build your portfolio over time, investing in stocks, ETFs, and mutual funds can provide long-term growth.
If you are interested in long-term, passive investing it’s worth looking into Investment Plans. With an investment plan you have the ability to create and build your own portfolio based on your risk tolerance and preferred sector.
It is possible to run up to 10 Investment Plans simultaneously with all plans being free to run. Investors should note that there is no minimum investment period and you get to decide exactly how long your investments will last. Thanks to the low entry threshold you can start creating your Plans from just 15 GBP minimum investment. The game changer is the fact you don't have to calculate anything, you just set a percentage you would like to be invested in each ETF and we take care of everything else. You can open and close your plans at any time.
XTB also now offers a Flexible Stocks & Shares ISA. In a Flexible Stocks and Shares ISA, you can withdraw funds at any time. The key feature is that you can replace any amount you withdraw within the same tax year without affecting your annual contribution limit.
If you withdraw £1,000, you can contribute an additional £1,000 later in the same tax year without it counting against your £20,000 limit. This allows for greater flexibility in managing your investments.
Key Features of XTB’s Flexible Stocks & Shares ISA:
- *Tax Benefits: Enjoy tax-free capital gains and income from your investments.
- Flexibility: Withdraw funds whenever you need and reinvest them without losing your allowance.
- Diverse Investment Options: Choose from thousands of stocks, and ETFs to build a portfolio that aligns with your goals.
- User-Friendly Platform: Access your account and manage your investments easily through our advanced trading platform.
How to Get Started
In order to open a Flexible Stocks & Shares ISA account, you need to create a Real account with XTB in GBP. Please note, to open an ISA account you need to be a UK resident and provide your National Insurance number.
*Tax treatment depends on your individual circumstances and ISA regulations which may change.
- Active trading: For those who want to take a more hands-on approach, XTB offers advanced tools for forex, commodities, and other instruments, giving you the ability to trade on a short-term basis.
XTB provides access to a vast selection of individual Stocks across multiple exchanges and markets. By carefully selecting stocks from different sectors and regions, you can create a diversified equity portfolio tailored to your risk profile and investment goals. Individual stocks offer the potential for high returns, but also come with inherent company-specific risks. Focus on companies with strong fundamentals and growth potential, considering factors like industry trends, financial health, and competitive advantage. XTB offers 0% commission on Stock and ETF trading equivalent up to 100,000 EUR. Transactions above this limit will be charged a commission of 0.2% (minimum 10 GBP). 0.5% conversion fee may apply.
While stocks and ETFs form a strong foundation, diversification goes beyond equities. XTB offers access to other instruments that can help hedge your portfolio against market fluctuations.
Investing in Commodities like gold, oil, or agricultural products can add a layer of protection against inflation and market downturns. You can access these through CFDs (Contracts for Difference) on XTB's platform. Please note that CFDs carry a high degree of risk.
The Foreign exchange market (forex) allows you to trade currencies. This can be a way to hedge against inflation or diversify geographically. However, forex trading is complex and carries a high degree of risk. Be sure to thoroughly understand forex trading before participating.
By leveraging the full range of investment products offered by XTB, you can create a well-diversified portfolio that aligns with your financial objectives. Remember, diversification is not a guarantee against losses, but it can help manage risk and potentially improve your long-term investment outcomes.
Our trading platform provides users with powerful charting tools, real-time market data, and educational resources to ensure that even new traders can participate in the markets confidently.
The XTB platform is packed with innovative tools that help you make smarter financial decisions. The more you familiarise yourself with these tools, the more prepared you will be to navigate the complexities of the financial markets.
Some of the most beneficial tools and resources offered by XTB include:
- XTB Trading Platform: The platform offers an intuitive interface that is easy to use for beginners and advanced traders alike. It provides access to a wide variety of financial instruments, including indices, forex, commodities, and stocks.
- Demo Account: One of the best ways to get started is by using XTB's demo account, which allows you to practice trading without risking real money. This helps you develop strategies and build confidence before diving into live markets.
- Trading Calculator: Use the XTB trading calculator to assess potential profits and losses. This tool helps you plan your trades more effectively by providing detailed information on positions and risk/reward ratios.
- Market Insights and Analysis: XTB provides real-time market analysis and insights, helping you stay informed of global economic trends that may impact your investment decisions.
By leveraging these resources, you can make data-driven decisions that align with your financial goals.
Stay disciplined and track your progress
To stay financially fit, it’s important to track your progress and remain disciplined in your decision-making. Our platform allows you to track your investments and trades, providing you with valuable performance data and reports.
Keep a close eye on your portfolio's performance, making adjustments when necessary. XTB allows you to view real-time updates, so you can always know where you stand. Check in on your financial goals periodically to assess whether you're on track. If necessary, tweak your strategy to ensure you’re moving in the right direction. It's easy to get distracted by short-term market fluctuations, but maintaining your long-term focus will help you achieve sustained financial success.
Review your expenses and save more
A key aspect of financial fitness is controlling your spending. Start the year by reviewing your monthly expenses and identifying areas where you can cut back. Track your income and expenses to identify areas for improvement. Cut back on non-essential items like dining out, subscriptions, and impulse purchases. Set up automatic transfers to your savings account so you’re consistently putting money away without thinking about it.
By improving your cash flow and reducing unnecessary expenditures, you'll have more resources to invest and grow your wealth. Keep in mind that every month is different, and it's totally okay if you end up spending a bit more than you expected sometimes.
Conclusion
Kicking off the year financially fit is all about learning, planning, and making smart choices. With XTB, you’ve got everything you need to confidently dive into trading and investing. By setting clear goals, getting to know the markets, and using the right tools, you’ll be on the right track to making this year a big step forward in your financial journey.
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
