Brisbane-based company, Wealth Connexions, shares three key rules that you need to know about wealth creation in Brisbane.
You may be wondering, what exactly is wealth creation? Wealth creation is the process of investing your money using various strategies to meet specific goals, such as saving to purchase a home or car. Saving money can be a tricky process, especially when your goals feel unreachable. However, there are many strategies to restore or expand your savings account, which the team at Wealth Connexions have concisely and carefully developed just for you.
Spend Less Than You Earn
It may seem obvious, but an important key strategy is to spend as little as you can when you receive your paycheque. It’s always exciting when you see that sum of money enter your account, but to save and meet your goals, you’ll have to restrain yourself from spending it right away.
The easiest way to do this is to make a weekly or fortnightly budget. Within this budget, you’ll have a total for food, bills, transport, and entertainment. Saving and making a budget doesn’t mean that you can’t still have enjoyment in your day-to-day life, you just have to be better at doing your research and finding good deals. Say, for example, you’ve managed your money particularly well one week and have fallen below the balance you’ve allocated for food, you then may be able to go out for dinner with friends or family. Otherwise, if you don’t want to spend this money elsewhere, you can always leave it in your account and watch it grow. There’s nothing more satisfying than watching those numbers escalate and get closer to meeting your goals.
Keeping a weekly or fortnightly budget not only allows you to better manage your money, but it also allows you to have a better understanding of where it’s all going. By checking through this at the end of your budgeting period, you’ll be able to recognise where you can save and how you can change your lifestyle for the better. Budgets can be very insightful and if you like to stay on top of things, you’d be surprised to see how much of a difference they make in organising your money.
Investing Your Money
One of the most popular ways to build a wealth creation plan is to place at least 10% of your income into investments. These can come in many different forms such as shares, property, superannuation, cryptocurrencies and many more. While investing can be a solid form of making money, unlike the other strategies that we’ve outlined, investing can be unpredictable, and it’s not always guaranteed that you’ll make a profit from your investments.
While investing is uncertain, you can lower the risk by researching the market you intend to invest in or working with a financial planner. Be aware that investment is a long-term wealth creation technique, so be patient and don’t expect overnight results. By doing the extra research to ensure your investment is profitable, asking the right questions and being mindful of every action you take, your investments should do well.
Step Back
We all know that money doesn’t grow on trees, so we need to be mindful of how we’re spending and managing it. Outlined above, are the top key strategies to managing and growing your money. Though, while we can make as many strategies as we like, if we’re not allowing our income to sit and slowly grow, then we can’t expect to meet our goals.
To watch your money grow, you need to lessen your spending and allow the money to develop over time. Sometimes, you’ll have to step back and let the market guide you and take the advice from the people you trust.
Markets are often unpredictable, which is why it’s important to have contingency plans. This could include keeping a savings account that you never touch unless it’s for emergencies and developing an exit strategy for your investment if something unprecedented happens. There are many possible exit strategies that could be put into place and worked effectively if done well, this could include timing, such as predicting what the market may do, as well as a stop-loss exit strategy, which encourages investors to understand the moving averages and trends of the market to predict the right time to make the best profit possible.
