New (Financial) Year, New Me! Three Tips To Build Wealth In 2021!

About the author:

Author name:
By Simon Tarrant
Job title:
Date posted:
02 July 2020, 10:00 AM

1. Make a budget and stick to it!

Establishing a budget is the best way to manage your day to day living costs.

It helps to ensure you always have funds available to meet your regular expenses –rent, phone, electricity, groceries, fuel, car insurance, registration, etc.

Having a good budget in place will also provide your best chance of meeting whatever short term goals you may have.

Stock Image - Financial Accounting

2. Create a regular savings plan / investment strategy

A regular savings plan can be made to invest an initial lump sum followed by regular investment instalments.

It is a great way to save or invest for a short – medium term goal such as an overseas holiday, a car, or a deposit on your first home. It also helps to reduce investment costs if you are building your wealth through ‘dollar cost averaging’. This means buying continuously over time so the cost of your investment is the ‘average’ of the prices you’ve paid. Your regular investment purchases less units when prices are high and more units when prices are low. This means your money buys more – which is the key to dollar cost averaging.

Chart: Growth-Of-The-Dollar-1989-2020

3. Review your Super

The benefits of superannuation may seem a long way off for some, however good planning and financial discipline now is central for your financial security in retirement. A small change now can make a significant impact in your retirement.

When reviewing your super, it’s always important to ensure that not only are you getting the best return, but that your funds asset allocation matches your desired risk profile and retirement goals.

Find out more

Simon is a Private Client Adviser at Morgans Gosford. Simon is passionate about creating quality financial strategies that are tailored and customised to an investor’s individual lifestyle, financial goals and risk profile.

If you would like to discuss your opportunities to build wealth in 2021, please contact Simon on simon.tarrant@morgans.com.au or via (02) 4325 0884 General Advice warning: This article is made without consideration of any specific client’s investment objectives, financial situation or needs. It is recommended that any persons who wish to act upon this report consult with their investment adviser before doing so. Morgans does not accept any liability for the results of any actions taken or not taken on the basis of information in this report, or for any negligent misstatements, errors or omissions.

  • Print this page
  • Copy Link