Through each stage of your life you will focus on issues that are relevant at that time. Wealth creation is no different. Following are some practical ideas and strategies to help you save, create and protect your wealth, regardless of your stage of life.
Budgets
Establishing a budget, and sticking to it, is the best way to manage your day to day living/small business costs. It helps to ensure you always have funds available to meet your regular expenses.
Having a good budget in place will also provide your best chance of meeting whatever short term goals you may have.
Regular Savings Plans
Setting up a regular savings plan is a great idea as it encourages you to save your surplus money.
Regular savings plans enable you to invest any surplus income you may have while still allowing you access to funds if required.
Debt Management
Consolidating debt, shopping around for better insurance rates and credit card interest rates can all help you reduce your expenses.
Debt can also play an important role in helping you achieve your lifestyle and financial goals. It must, however, be managed effectively as some debt structures are more efficient than others.
Any debt used to purchase assets that generate an income can result in the interest costs being tax deductible. Where these assets also grow in value, this form of debt is considered to be efficient.
Investing
Regardless of whether you borrow to invest or not, it is still a good time to think about investing in shares, either directly via the sharemarket, or via an unlisted managed fund. Most share prices are at a reasonable value. Your adviser will be able to help select the most appropriate method of investing to suit you.
Superannuation
Superannuation is a savings vehicle where the main purpose is to provide funds in retirement. If planned well, you can enjoy a comfortable lifestyle throughout retirement without having to rely too heavily on Government pensions.
Wealth Protection
Greater financial responsibility, such as mortgages, marriage, and children, means the impact of illness, injury or death is greater.
Protecting your family and assets through insurance has more of a sense of urgency, especially when the family is reliant on your income.
Some things you need to consider:
- The level of insurance
- Ownership structures
- Funding arrangements
Disclaimer
This is general advice only. While this report is based on information from sources which are considered reliable, its accuracy and completeness cannot be guaranteed. RBS Morgans, its directors, agents and employees do not accept any liability for the results of any actions taken or not taken on the basis of information in this report, or for any negligent misstatements, errors or omissions. This report is made without consideration of any specific client’s investment objectives, financial situation or needs. Those acting upon such information without first consulting one of RBS Morgans investment advisers do so entirely at their own risk. This report does not constitute an offer or invitation to purchase any securities and should not be relied upon in connection with any contract or commitment whatsoever. The author of this article is an Authorised Representative of RBS Morgans Limited.
