Building Wealth

Everyone’s definition of wealth is different. It is unique and specific to each individual. And your definition today will be different five years from now. But whatever it is, if you want to build a true passive and residual income – an income that you continue to earn even when you don’t work – it’s important to follow these proven strategies:

1. Pay Yourself First. Set aside a reasonable percentage of each pay through an automatic deposit into a savings or investment plan.

2. Start Now. Fear of making a mistake may lead to inaction, but inaction or procrastination will always cost you money in the end. So he earlier you start to save, the more you will have later in life.

3. Get Rid of “Bad” Debt. By paying down your mortgage, credit cards and other consumer debt before you start a wealth building program you will get a return that exceeds most investments. (E.g. If your credit card rate is 14% you will need to find an investment that gives you a before tax return above 20% to exceed that rate.)

4. Refinance Your Home. It’s likely your home has increased in value or even more likely you may be paying higher interest than necessary on your debts. Refinancing – debt consolidation – leverages the equity you may have in your home to pay down high interest credit cards, etc or kick-start your investment program.

5. Build An Emergency Fund. Nothing wrecks the best laid plan more than an emergency, particularly one that costs you money. Set aside up to six months of your income to live on in case catastrophe hits – this avoids the temptation to take on unplanned debt or prematurely sell valuable investments.

6. Protect Your Assets. You can have a healthy portfolio and see it disappear quickly if you are not properly insured. Make sure that your medical, household, life, and disability insurance coverage is adequate to meet your needs. All it takes is one unplanned event to wipe out your assets.

The message here is that a sound knowledge of financial basics combined with some careful financial planning goes a long way towards helping you hang on to more of your hard earned money and help match your savings and investments to your overall goals.

Identifying clear goals and establishing an achievable but flexible pathway occurs through challenging your aspirations, helping you make decisions and giving you good counsel.

Your financial success depends on your ability to not only meet current financial challenges, but to maximise your financial situation today so you can achieve the lifestyle you want for the future.

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Brisbane Office

Level 11 / 300 Ann St
Brisbane, 4001
Ph: (07) 3223 6000
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