You don’t need to be wealthy in order to build wealth.
Commitment and focus are the key ingredients to success.
You could consider a regular savings plan which (in financial speak) maximises the power of dollar cost averaging and compounding.
Super is a great way to save for your future but there are restrictions on accessing the money – you have to be at least 55 for starters.
If you want to save for something in the short-term, e.g. your first home or an overseas holiday, you have to invest outside your super. Many people deposit money into a savings or a term deposit account and are happy to leave it here, thinking they’re at least earning some interest.
But beware the ‘savings eaters’. The real investment return is what you end up with after tax and inflation have taken a bite. They eat away at your investment over the term of your deposit.
Investing in assets with growth potential – property and shares – is likely to keep up with inflation over the long term, rather than be eaten up. Yes, there’s always the chance that investment markets can drop rather than grow, but if you don’t need to access your money in the short term, i.e. you’ve got at least 3 years to invest, this might be a better option.
Your small decision
It’s worth reviewing your short and long-term goals to ensure you have a savings plan that’s helping you build real wealth.
If this sounds like something that might suit you or you’d like more information about it,
please complete our online enquiry form or call our Direct Solutions Team for assistance on 1300 669 445.
Note: Before your decision is made, you’ll receive documented advice from us, outlining our recommendations and reasons for your small – but wise - decision.
Do you have a short-term goal that you need to save up for like an overseas holiday, home renovations, or a home itself?
Are you finding it a struggle because there’s rarely any money left over after paying the mortgage or rent, household bills and living expenses?
There’s a very simple answer – pay yourself first. Paying yourself first is about setting money aside for your goal before you spend it on other commitments. It can be as easy as arranging a regular debit from your bank account to your savings as soon as your pay is credited. A pay rise is a good way to start this, or even a tax cut.
‘Pay yourself first’ works because most of us don’t miss what we don’t see. If money is taken from our account before we have a chance to spend it, it’s much less painful than if we wait to see if there’s any left at the end of the month.
Your small decision
You need to find an account that rewards savings and pays you bonus interest. If you plan to save for at least 3 years, however, it might be better to invest in assets with growth potential.
If paying yourself sounds like something that might suit you or you’d like more information, please complete our online enquiry form or call our Direct Solutions Team for assistance on 1300 669 445.
Note: Before your decision is made, you’ll receive documented advice from us, outlining our recommendations and reasons for your small – but wise - decision.
