Money is an enabler in life, giving you opportunities and freedom of choice in the decisions you make. Building wealth will enable you to have a financially secure future, but it’s more than just accumulating money. You need to consider a strategic and intentional process, with careful planning, building in habits to support your longer-term goals. Here are the key steps I talk to my clients about when it comes to thinking about those strategic plans.
SET GOALS
Having clearly defined financial goals will provide you with direction and purpose on your wealth journey. Knowing what you want to achieve will make you feel more confident about your current priorities.
Spending time setting short-term and long-term targets, whether that’s saving for a home, holiday or retirement, will help you to stay on track and keep motivated – and be one of the best investments you make.
2. ASSESS TAX
It is essential to understand tax planning strategies to help boost your financial success. This involves evaluating your income sources, investments, expenses and potential deductions, to ensure you are maximising the benefits and advantages under tax laws.
3. REVIEW INVESTMENTS
Your investment portfolio is a key driver of your wealth accumulation. But don’t just get started and forget about it. Ensure you regularly review its performance, the diversity of your holdings and check that it continues to align with your risk tolerance and financial goals.
4. PENSION PLANNING
Planning for retirement is a journey that you can never start too early. Picturing your desired retirement and planning how you can achieve that will put you on the right track. Understanding your lifestyle goals and financial needs can help with long-term planning and lead to financial security in later life.
5. REVIEW INSURANCES
Having the right cover in place is one of the foundations for financial stability. Regularly review what you have in place to ensure it continues to match your changing needs. From health to life and property insurance, the right cover will protect you from unexpected money concerns.
6. STAY INFORMED
Invest in developing your financial literacy, so you can be confident in making better informed decisions. The financial landscape is constantly evolving so keeping yourself educated arms you with the knowledge you need to make those decisions. Try podcasts, financial apps, books, workshops and networking events to find which work for you.
Keeping up to date with changes to regulations will help ensure you can make your money work as hard for you as you have to earn it.