It’s a simple trick of the trade that artists swear by. Applying a primer called gesso not only helps a painting last longer but also reduces paint wastage. Gesso (pronounced “jeh-so”) is used to prepare the canvas before work begins. It coats the canvas fibres so they do not soak up all the pigment which wastes paint but more crucially, may change the final look of the painting.

Gesso also softens the surface, allowing bristles to glide over and preserving the lifespan of expensive brushes. It protects the canvas fibres so the artwork can last longer.

A good artist spares no effort when it comes to laying the groundwork. Similarly, preparation and research for investments usually yield better outcomes with less waste of resources.

Keeping tabs on your investment palette

Diligent artists maintain their brushes in pristine condition, often checking if bristles are splayed and never allowing paint to dry on them.

Likewise, one should monitor an investment portfolio closely. Start the year off right by doing a detailed review of your finances. It sounds like a simple task but requires discipline. For a clearer overview, use a computer program like Excel.

Know exactly how large your portfolio is and what it comprises so you can track investment goals and maintain the right investment mix.

Just as how a masterpiece can be an interplay of varied techniques and a multitude of shades, your portfolio should be sufficiently diversified across investment types such as stocks and bonds, industries, companies and geographic markets.

Bringing life into the picture

Art imitates life. The art of investing should also reflect life circumstances. Investing should be calibrated according to one’s personal milestones, even setbacks.

These could be career-related. For example, are you anticipating a promotion or a salary jump in the coming year? If so, you could consider ploughing more into your investments or taking bigger risks.

Or there could be changes in your personal life. Are wedding bells ringing? Or are you taking care of elderly parents? With rising living and education costs, such commitments need to be factored into all investment decisions. You could invest with these financial goals in mind, such as setting aside and growing a sum of money to pay for your child’s university education in 20 years.

These changes in financial circumstances should have significant bearing on your overall investment outlook. Plus, a general rule of thumb is to always have a liquid emergency fund, perhaps in a high-yielding savings account that can cover three to six months of living expenses.

Brush up on knowledge

Knowledge, as they say, is power. When it comes to growing your nest egg, you want to make the most informed choice so as to maximise returns and minimise risks.

For starters, get a sense of the general economic sentiment as well as the available investment options through financial publications, newspapers and websites.

Understand the difference between various asset types, such as equities and bonds. Keep up with current affairs to better understand global market forces and growth opportunities. A comprehensive overview will help you assess the strengths and weaknesses of investment choices as well as respective sectors and markets.

All this prep work – gathering knowledge, investing in sync with your life and lifestyle as well as being on top of your portfolio – is like priming the canvas with gesso. It helps to paint a clearer, long-term picture for a smoother investment journey.