"Have the courage to set down every penny you spend, and add it up weekly."
The ever popular simplified equation to building wealth is constructed from so many quotations, Benjamin Franklin's, "A penny saved, is a penny earned" may ring true but in this day and age simply dropping coins in a piggy bank is no longer going to build you wealth. A missing value is... and invest wisely!
3 core principles to be guided on when on the path to multiplying your saved earnings:
The quality of the asset you invest in will determine your outcomes. If you desire good quality returns with low investment risk, you must invest in the highest quality assets you can afford – it’s all about quality;
Regularly spend less than you earn and invest the difference wisely (which may include repayment of debt, additional investments, super contributions, cash savings and so on); and
Avoid trying to forecast or ‘time’ the market, participate in untested strategies, take high risk in the hope of ‘fast-tracking’ wealth and so on. Don’t try and “reinvent the wheel”. Instead, follow safe, tested and fundamentally sound strategies and invest when your circumstances allow it.
It's all simple, we're not saying easy, but it does take a whole lot of discipline and goal setting!
To speak to me about Wealth Creation in detail, or for any financial advice please contact me on 0413 887 591 or email me: firstname.lastname@example.org
This article contains general advice only.
Liz Chevel is an Authorised Representative of Dover Financial Advisers Pty Ltd