Tips to help build your wealth
If you understand budgeting, and are ready to set some financial goals, it is time to consider how you will set about building your wealth.
- Consider having part of your salary regularly deducted from your savings account and transferred to investments with a higher rate of return.
- Invest for the medium to longer term which will help smooth out the short term volatility of some investments.
- Growth investments such as property and shares, although higher risk, generally offer a higher return over the longer term than lower risk investments such as cash and fixed interest
- Avoid investments that sound too good to be true, as this is often the case
- Consider investments that are more tax effective such as Australian shares
- Contribute more to super as this is one of the most tax effective investment structures available
- Diversification helps to reduce risk by investing across a range of asset classes
Why not take a look at our savings calculator which can give you an idea of how much your savings will be worth over time so you can work out how much you need to save. A financial planner can help you identify strategies to build your wealth and can provide advice tailored to your particular circumstances and goals.