News & Information

5 Steps to Building your Wealth

October 10, 2018

With constant changes in the economy and the fluctuations in the market we’re always looking for ways to continue to build our wealth. To be able to build we need to have a starting point. While everyone is different financially, we can all use these basic 5 building blocks as our foundation to help us grow financially.

1. Know your financial position

If you don’t know where you’re sitting financially, how do you expect to move forward?The first step towards building your wealth is gaining a deeper understanding of your financial situation.Start by making a list of all your assets and liabilities as well as any debt you may have. Keep this list with you and revisit it frequently, use it as a check-in point to see if you are moving forward.Remind yourself that this list is where you are now and not where you want to be.

2. Clear your credit card debt

It can be quite difficult to get debt under control with credit cards being the main offender. Gaining control of your debt is crucial to building a wealthier future.You can’t achieve a comfortable level of wealth is you are stuck in debt.

Banks request minimum repayment amounts on outstanding credit card debts with the unpaid balance attracting extra interest .This can leave you paying more over a longer period.Paying off your credit card debt in full, or large instalments is a good starting point and will help you feel like you’re gaining control of your finances.

3. Get involved with your superannuation

The sooner we get involved in our super the better!Start by finding all of your funds, think about consolidating them and find out if you have built in insurance. You may also want to start thinking about how much super you’ll need during retirement, which ties into the next step.

4. Meet with a financial adviser

A qualified financial adviser will work with you to determine your financial goals.They will create a plan that is realistic and one you can work towards. A financial adviser can also help you determine how much money you will need to live comfortably during retirement and will work with you to achieve that.Whatever your goal may be or however complex or simple, a professional financial adviser will help you achieve it.

5. Plan your investments

Regardless of the investments you make you should understand the risk associated so your investment decision is practical and matches your goals and risk profile.A financial planner can assist you in making the best possible investment option that is suited just for you.