Can you build wealth without a six-figure income? As our advisers at Cole Murray will tell you, building wealth is not only possible but – with some planning and good advice – it may even be easier than you think.
Here are Cole Murray’s top tips to boost your finances.
Step 1: Budget
Budgeting is the fundamental building block of any wealth-building strategy. Creating a good budget is not just a matter of practising addition and subtraction; it’s about assessing your relationship with money, setting up goals and then drawing a roadmap to get there.
Whether you’re a big earner, a part-time earner or something in between, take a moment to review where you’re at, where you want to be – and how your spending habits can support or hinder this vision.
Step 2: Track your progress
Once you have identified your goals, don’t forget to monitor your progress. Set realistic time frames and check-in points, to see how you are doing. Are you putting aside the money you expected? If not, has anything derailed your plans – or is it the plan itself that needs tweaking?
Remember, as the saying goes, ‘what gets measured, gets done.’ And taking note of your successes can provide that extra bit of motivation you need to achieve more than you ever thought possible.
Step 3: Use debt smartly
Not all debt is necessarily bad for your financial wellbeing. It can also be a tool to get ahead and achieve certain financial goals sooner. Think about home ownership, for example, and how it can lead to greater wealth.
However, the important thing is to be aware that all debt comes at a cost – namely, interest costs. Especially with short-term loans and credit cards, it can be tempting to extend the term and reduce your monthly payments to a bare minimum. But the longer the term, the more interest you’ll end up paying overall. So think about what you can comfortably afford in a monthly payment, and keep the length of your loan as short as possible.
Step 4: Invest
One common misconception about investing is that it’s only for the rich. But in fact, you don’t need a lot of money to get started. The key thing is to start and take small, regular steps towards your goal.
Even investing as little as $20 a week, coupled with the power of compounding interest, can help you boost your wealth over time. It’s important to weigh up the gains you’ll be getting on this side with the losses on any interest you may be paying on debt… so it’s always a good idea to talk to a Financial Adviser about what your best moves are.
Step 5: Increase your income
It may sound obvious but, along with saving more money, increasing your income is a pillar of wealth creation. This doesn’t mean you should be quitting your full-time job and finding a new one; you could use your skills and start a side business for extra cash flow.
It’s also about putting foundations in place that are going to reap rewards in the future. Are you able to work towards creating passive income, perhaps through rental property, growing investments or getting smart about your business offerings? Once again, small steps can turn into giant leaps.
Step 6: Protect your wealth
While you work hard to build wealth, it’s important to protect it as well. As Financial Advisers, we specialise in helping people create and safeguard the lifestyle they desire. Whether you’d like to give your finances a boost or have a safety net in place to protect your financial future from the unexpected, please give us a call and we’ll walk you through your options.
After all, it would be devastating to build your wealth only to see it all drained away through a lack of planning and protection.
KEEN TO LOOK AT A SERIOUS WEALTH GENERATION STRATEGY?
Talk to our Advisers about determining the right moves for you. A 15 minute no-obligation chat will get you started.