Building wealth is something you can aim for at any age – whether you’re starting small or building on a solid foundation. It’s about creating an investment plan, incorporating the following strategies for success.
Focus on paying down high-interest debts such as credit cards and payday loans. Not only will this save big dollars in interest, if you then cancel the card, or at least reduce your credit limit, it will also help your credit score.
Pay yourself first
Always pay yourself first. Not spending money, but funds for investment that you set up as automatic payday deductions. The idea is by keeping these funds out of sight, you’re not tempted to spend them!
Set your goals
Set short and longterm goals and align them with ‘defensive’ (lower risk, shorter term) investments such as term deposits and ‘growth’ (higher risk, longer term) options such as shares.
Weigh up the risks
Most people know about investment risks such as rising interest rates. But other types range from liquidity to gearing, so it’s crucial to be forewarned and forearmed.
Track your net worth
Don’t just put your funds in an asset and leave them. You need to track performance so you can refresh your portfolio as needed to maintain the best returns.
Build multiple income streams
Extra revenue can be crucial in freeing up money to invest, so look at your life and skillset and see what you could monetise. Could you write a book about a specialist topic? Create an online course for digital download? Work weekends at a local shopping centre? It’s not healthy to work 24-7, but a little sacrifice of free time and expertise can be a signifi cant boost up the wealth-building ladder.
Have an emergency fund
Aim to save a few months’ expenses so if you hit lean times, you won’t have to fi resell your investments to survive.
Find a trusted partner
Look to align with a trusted wealth-building partner, such as La Trobe Financial, Australia’s leading credit asset manager, whose 12 Month Term Account has been judged Australia’s Best Credit Fund by Money magazine for the past 13 years. For more information on investment options, visit latrobefinancial.com.