What is Super and Why is It Important? Super refers to the retirement income system…
The road to financial freedom is not paved by investing alone. Those who want to amass, generate, and secure wealth should take more proactive steps and adopt a holistic strategy that addresses all aspects of their financial affairs.
Read on to discover the five ways you can build your wealth today.
Build Your Wealth
1# Build Wealth by Using Your Money Wisely
What you spend is more important than what you earn. Indeed, you can have a high income, but it is a whole level of discipline to save for the future and purchase investments. In order to exercise better financial and spending control, you should first understand your own money routines and behaviours. Conduct your own investigation into previous expenditures in order to plan for future costs. This will help you steer clear of unjustified spending.
Another helpful step is to devise a strategy for paying off personal loans and credit cards as quickly as possible.
The MoneySmart Budget Planner is a free tool you can use to get started.
2# Build Wealth by Setting Aside Money for Unforeseen Events
Always keep a healthy cash balance in your bank account aka an emergency fund. Stay liquid, but avoid keeping all your money in the bank. Having an accessible and appropriate cash reserve can save you on rainy days and prevent financial trouble. As such, it is highly recommended that you keep track of your emergency fund on a regular basis.
3# Build Wealth By Investing
Having money in the bank does not automatically make you an active investor. Engaging in financial activities such as building a diversified investment portfolio – beyond cash – and reaping the benefits of compound interest can help you to accumulate wealth. Diversify your portfolio by buying across different investment and asset classes and ensure your portfolio is appropriate for your risk tolerance.
Forecasting future returns based on past performance is impossible. Investing in a particular asset or industry can put you at risk of financial loss so make sure you feel comfortable with your choices. If you are unsure how to build a tailored portfolio, consult with a financial adviser – if you don’t understand, don’t invest! Remember, the best investment strategy for each individual is unique.
4# Build Wealth By Enhancing Your Super
The most effective way to accumulate wealth is to create a retirement plan that includes savings. The most common form of retirement saving for Australians is via superannuation.
Superannuation is not taxed in the same way that other types of income or investments are. Investing in super can be beneficial depending on the specifics of your situation if you have the ability to delay accessing the funds for a period of time.
It is not advisable to treat the retirement account as if it were a cash savings account and simply let it “do its thing.” Knowing how and where your retirement savings are invested, as well as the fees charged by your fund, is critical. It is critical to remember that a higher fee does not always imply a better quality product.
5# Build Wealth By Utilising Technology
You may find yourself managing your finances in an archaic way. Perhaps it is time to make use of technology and use money apps that can simplify the process and help you find opportunities to save money.
With the help of apps designed specifically for this purpose, you can track your spending, save money on gas and groceries, and even check your investments. Likewise, it is also critical to delete and stop using applications that are a waste of money.
Create Your Blueprint to Building Wealth with Coastal Advice Group!
Building wealth is not always about getting rich – it’s about financial security, putting food on the table, getting ready for unfortunate events, and making sure you protect your family. With secured wealth, you have choices in your life and can choose your own path.
Are you interested in wealth creation? Our experienced Advice Team are here to help you achieve your dreams and goals. Coastal Advice Group has offices located in Newcastle, the Central Coast, Sydney, Port Macquarie, and Byron Bay.
DISCLAIMER: The views expressed in this publication are solely those of the author; they are not reflective or indicative of RI Advice Group’s position and are not to be attributed to RI Advice Group. They cannot be reproduced in any form without the express written consent of the author. This information (including taxation) is general in nature and does not consider your individual circumstances or needs. Do not act until you seek professional advice. Newcastle Financial Planning Group, Central Coast Financial Planning Group, Sydney Wealth Advisers, Coastal Advice Port Macquarie and Coastal Advice Ballina Byron are subsidiaries of Coastal Advice Group Pty Ltd which is a Corporate Authorised Representative of RI Advice Group Pty Ltd, ABN 23 001 774 125 AFSL 238429.