Tips to building wealth
By now, you’ve probably read all about saving and investing, you’ve opened up different types of investment accounts and have done the work of consulting with a financial advisor. Good news is, you’re already building wealth.
With all the long-term and short-term savings accounts you’ve set-up, you can rest assured that your money is working hard for your financial future. All you need to do now, is stick to these tips to helping you build wealth.
Tips to building wealth
1.Automate your savings
Between your job, school, family and friends, it can be easy to forget to make your monthly savings contributions into your savings accounts. And when you realise this, you’ve spent most of your money and have no way of still saving that month.
One way to avoid this is by automating your savings. Set up a stop or debit order for your investment and savings accounts. Another benefit of automating your savings is that you think less about what you’re saving, meaning that you’re less tempted to use the money.
2.Review your investments and savings periodically
As you meet your short-term goals, it helps to also review your investments and savings accounts. This means looking at how much you’ve saved against your savings goals and looking at how much interest your investments have earned over 3, 6, 12 months and more.
This is also a great step in ensuring that you are keeping up with the best investment opportunities that are available. When you started saving and investing, you may have had debt or even a tight monthly budget for saving, but things can change in a year. You could get a promotion, an increase, or a side-hustle- which could mean more money for you to allocate towards another investment opportunity. Read about investment options.
3.Increase your contributions
With every New Year, every salary increase or extra money you make, it’s a good idea to also increase your monthly contributions into your savings and investment accounts. This is a great way to keep up with the market changes in interest rates, as well as to have an even bigger financial net for your future.
4.Consult a financial advisor
Going to see a financial advisor is not a once off event. A financial advisor is an expert who helps you to organise your finances, and this should be ongoing. Your advisor will see the outcomes and progress of your investments and savings, giving you a clear picture of how prepared you are for your retirement and life’s unexpected expenses.
5.Make financial literacy your best friend
You can never know enough about investing money. Managing money requires you to constantly learn and equip yourself with knowledge about debt, credit, savings, investments, managing money and more. This will ensure that you make sound financial decisions at every stage of life when you have to make a decision about money.