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 By following a few simple practices anyone can improve their financial position. Wealth creation is as much a mindset as it is a discipline. By developing a workable wealth creation strategy to suit your circumstances you will accumulate wealth at a much faster rate than otherwise.
But you must stick to the plan.
Highland Financial wealth creation tips for Financial Independence
- Save 10% of everything you earn. That's right - 10%. And start right now. An active savings plan is the single most important part of a wealth creation package.
- Reinvest the returns on your investments and interest on savings accounts. This will multiply your savings and accelerate your wealth by harnessing the power of compound interest.
- Develop a budget and stick to it. Make sure the budget incorporates your 10% savings plan.
Adopt a long-term view. Wealth creation isn't a lottery; it's a systematic approach to accumulation.
- Leverage the power of passive income streams such as interest, dividends, royalties, rent and capital gains. These streams augment regular income from salary.
- Protect your assets by insuring against the unexpected. Income protection and life insurance will maintain your desired lifestyle should unfortunate events occur.
- Separate your personal and business assets, so you'll have something to fall back on if the business fails. And hold assets outside your name to protect against possible litigation.
- Maximise the power of superannuation contributions. Super is a tax effective and secure long-term savings strategy.
- Gearing can accelerate wealth accumulation, but if entered into unwisely can also accelerate losses. Don't negatively gear only to minimise tax; the asset should increase in value over time.
- Get sound, prudent advice from a qualified, respected, independent licensed Financial Planner.
Highland Financial is among Australia's premier independent financial planners; licensed under Charter Financial Planning (part of the global AXA group).
Call us for a holistic approach to your financial needs; we aim to help you make more productive financial decisions.
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