Creating and building wealth takes careful attention in everything you do – be it your career and investment choices, engaging solid financial strategists and advisors, or continuing to educate yourself to increase your financial literacy. It’s up to you to create your wealth, but the first step is to realise that wealth is possible, with consistent focus and attention. Remember – doing nothing is doing something about it, so here are some tips to help you kick-start your wealth creation strategy.
1. Set Financial Goals
So you want to create wealth, but what does that actually mean to you? Take some time to think about what kind of lifestyle you want. This will help you to determine your financial goals for wealth creation. These goals should be clear (think SMART goals) and also ambitious without being too unrealistic that you lose motivation. It’s important once you have identified your financial goals to refer to them often, as well as regularly evaluating the progress you are making towards them.
2. Educate Yourself
The safest and most worthwhile investment you will make in life is in your own education. This doesn’t have to mean expensive tertiary education or formal courses that will take years to see returns. Instead, every spare moment you have can be invested in self-learning about investing, financial markets, taxation and learning from others who have achieved what you aspire to.
3. Track Your Finances
If you want to be wealthy you need to run your personal finances like a business. That means using a budget. Fortunately it has never been easier to keep track of your finances as there are a plethora of tools and software available that do the hard yards for you. One of our favourites is the new Pocketbook app, and ASIC also offers a handy budget planner.
4. Make Saving A Priority
If you want to make use of all the investment options available to you, you need to have cash at your disposal, and this means putting concerted effort into a savings plan. First, determine how much you should be saving each month, and make this one of your financial goals. Next, remove the risk of dipping into your savings by having it immediately transferred from your salary into a dedicated savings account. The more you can automate the savings process, the better chance you have of making it habitual and ultimately being successful in achieving your savings goals.
However saving does not simply involve putting your money into the bank and forgetting about it. Instead you need to put your savings to work, as savings accounts generally do not offer the same rewards as investment options. Investing your savings in sound ways will mean that they will grow, and also enjoy the effects of compounding interest. In this way, saving a small amount of your pay each month and diligently investing is the best way to kick-start your journey to wealth creation.
5. Make Money Work For You
You’ve heard it before: “To get rich you have to be making money while you’re asleep” or “Nobody ever got rich working 9 to 5.” So how to actually make money outside of your salary? The key is a diversified investment portfolio which is targeted at long term sustainable growth. There are many choices when it comes to where to invest, including property, mutual funds, stocks and ETFs. Different investment types come with different tax saving opportunities, as well as relative risk and growth indicators. The types of investments you make should also depend on your personal circumstances (i.e. if you are close to retirement or if you have a family).
While there are many investment strategies to follow (and everyone is happy to contribute their 2 cents on the subject) it pays to follow a proven strategy that has consistent and reliable results. For more information on the strategy that has helped thousands of Infinite Wealth clients on their journey to financial freedom, head to one of our workshops in Melbourne or Perth.
6. Think About Retirement
Planning for retirement is one of the best ways to ensure your future financial freedom, no matter how old you are. It is important to understand the mechanics of the financial choices you make now that will affect your future personal finance. If you don’t have a solid understanding of superannuation, now is the time to educate yourself. There are also advantages to actively investing in your super now, including co-contributions from the government, reducing the amount you pay in tax and cheaper insurance options.
Want to live the life you really want? The team at Infinite Wealth can provide the education, direction and on-going support you need to reach your financial goals. Get in touch with us today on 08 9438 6333 or click here to contact us.
The information provided is of a general nature and is not intended to be constituted as financial advice. We recommend that you seek independent advice from qualified professionals before employing any strategies outlined.