When you started your working life, saving for your retirement may not be have been so important to you. Most people aim for more short term goals like buying a new car, a deposit for a home or overseas travel.
Building wealth also involves long term strategies to help you make the most of your finances and the time you have in the workforce. Your Aspire adviser can work with you to look at all aspects of your lifestyle, your needs and your goals and formulate strategies to maximise your earning potential and help with building wealth.
Your wealth creation strategy should involve setting clear short, medium and long-term goals and putting together an easy to follow budget, directing any extra money to an investment portfolio, utilising strategies to minimise the tax you pay and putting strategies in place to protect your and your family.
What way of building wealth will work for you?
Your financial goals, your attitude to risk and the amount you have to invest determines the strategy thats best for you. Your values and attitudes to money might also be a factor.
A diversified way of building wealth makes sure that your risk distributed across different investments. Meaning that if the bottom drops out of investments (what occurred during the Global Financial Crisis) and you have property and bonds investments in addition to shares, you will in a better position than if you only have investments in shares as your investments are distributed across a number of asset classes.
Below are a few of the positives and negatives of some of the most common investments and wealth creation strategies to building wealth.