It's that time of the year to create some goals for the next 12 months.
And if you're seeking to create a second income for yourself, there are definitely some things you could do to help make it happen.
Consider these three New Year's resolutions:
Save like your life depends on it
The biggest success factor in your investment life isn't actually the performance of your portfolio or the size of your pay cheque from your day job.
It's your ability to save money.
That is, spending less than you earn then stashing away the difference.
You would think a massive salary would help people make money, but it's not "a cure all", according to US financial expert and buy-and-hold advocate Brian Feroldi.
"Just ask some of the highly-paid celebrities and athletes who [end] up filing for bankruptcy protection — Mike Tyson, Nicholas Cage, Lindsay Lohan."
And your ASX shares could be returning 20% a year, but if you have little savings to invest then it's useless.
Do not rule out growth stocks
When stock investors see the word "income", by reflex they think of ASX dividend shares.
But there is no rule saying that you can only derive a second income from dividends.
Buying a basket of growth stocks is a perfectly legitimate alternative route to earning a regular side wage.
In fact, there are some maintenance advantages to using this method over continually reinvesting dividends back into the portfolio.
Check out this example.
Don't fall for promises of quick riches
With interest rates about to stabilise or even come down, many experts are tipping a boom 2024 for stocks.
However, in such heady times the allure of the quick buck will again tempt vulnerable investors.
That is, businesses with flimsy fundamentals but a sexy narrative.
Punters imagine getting in on the ground floor could make them rich once it starts producing revenue then later turn a profit.
And that could turn out true for some stocks, but many will end in tears.
The best thing to do in a bull market is to ensure you're still doing all the fundamental checks you would do on a potential investment as if it were a bear market.
Don't let your guard down.
