Cornwall LivingIssue #79
The key to building wealth
We all want financial freedom, but how to achieve it? According to Harris Begley, financial goal-setting is the key to building wealth.
Your wealth creation objectives need to be adaptable to whatever’s going on in your life and nothing should stand between you and your long-term goals. Creating and maintaining the right investment strategy is vital in helping secure your financial future.
“Remember, wealth creation is about creating a lifestyle, and the earlier you start investing, the sooner you can enjoy the benefits.”
Short term, specific goals are generally easy to achieve as they don’t really involve any planning, but longer-term goals require careful planning. Remember, wealth creation is about creating a lifestyle, and the earlier you start investing, the sooner you can enjoy the benefits.
By taking the time to envisage your future, you can look back and visualise what needs to happen today for you to enjoy the desired lifestyle tomorrow. To visualise your future needs, ask yourself: What do I have? What do I want? When do I want it?
You should also develop an investment habit. To start your investment strategy, adopt a stable and organised investment routine that will help you achieve your goals. Compound growth is the central pillar of investing. It’s why investing works so well over the long term. The more you invest and the earlier you start will mean your investments have that much more time and potential to grow. By investing early and staying invested, you’ll also be able to take advantage of compound earnings. Making money on your money is the concept behind compounding. Compounding is when the money you earn from investments is reinvested to earn even more. However, while compounding can make an impact over many years, there may be periods where your money won’t grow.
Crucially, be consistent. Keep to your strategy and keep moving ahead consistently, which will help spread risk and enable you to grow your wealth for the long term through pound-cost averaging and careful asset allocation.
Remember, investing is an ongoing process. The right way to begin your strategy is by establishing goals for the short, medium and long term. Secondly, assess your current position in the financial lifecycle. Thirdly, ascertain your risk profile, as that decides how much risk you should take while investing. This is particularly important, as different financial objectives require different investment approaches.
Finally, maintain a well-diversified portfolio with regular reviews, which will enable you to adjust it to meet your changing needs and risk appetite at different stages of your life and in different market conditions. This helps you keep up your investing momentum towards achieving your long-term financial goals. It’s also important not to put all your investment eggs in one basket.
Harris Begley can provide you with professional expert advice, so be sure to contact financial advisors Matt Begley or Steve Rusga to discuss your financial goals.
The value of investments and the income they produce can fall as well as rise. You may get back less than you invested.
Information is based on our current understanding of taxation legislation and regulations. Any levels and bases of, and reliefs from, taxation are subject to change. Tax treatment is based on individual circumstances and may be subject to change in the future. Although endeavours have been made to provide accurate and timely information, we cannot guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No individual or company should act upon such information without receiving appropriate professional advice after a thorough review of their particular situation. We cannot accept responsibility for any loss as a result of acts or omissions.
"Remember, wealth creation is about creating a lifestyle, and the earlier you start investing, the sooner you can enjoy the benefits."