Accumulating Wealth
Identifying your lifestyle and financial goals is the starting point for any long term wealth accumulation plan.
What are you saving for:
- A new home?
- A new car
- An education fund for your children?
- A holiday?
- A retirement income, or a combination of all the above goals.
If your goals are realistic compared with your income and needs, then a successful wealth accumulation plan will have the flexibility to attain each goal at the time it is required to be met.
If your income does not allow you to attain all your goals, then you need some way of prioritising which are most important to you – and a strategy for how you are going to reach them. Some goals may be time specific, like your retirement, so it’s important to get the timing right.
For many people, wealth accumulation consists of simply putting any spare cash in their bank account. Then what happens? An emergency occurs and the savings are spent. The emergency might be anything from dental work for the kids to an annual clearance sale at the department store.
These people described above have their goal, but they don’t have a disciplined way of reaching it, nor do they have disciplined control over their spending. Many do not even have a plan in mind.
Why don’t they? (I’d be interested in your thoughts). I believe it’s because many people believe financial planning is too complex. I acknowledge it can be complex, but I know it doesn’t really need to be. Thats the value of getting good advice.
Where to from here?
- Contact us
- Get more information about an Educational Forum for you and your friends
- Register and receive regular email updates
Dan Smith is a self employed Financial Planner based in Rockhampton. He has clients in various locations throughout Australia but predominately in Central Queensland and specifically the geographic area encompassed by the Rockhampton Regional Council.