We all make financial mistakes on our road to creating generational wealth. The key is how quickly you learn from those mistakes – or even better, avoiding those potholes along the way with ease by learning from the mistakes of others.
Today’s blog dives into some solid financial advice that would help you avoid a stumbling zone for many. From the pen of our very own Executive Manager, Alicia Hernandez.
This article is a 4 min read.
Doesn’t everyone want financial freedom? Ohh … to have financial peace of mind after retirement. Isn’t that why we work hard and save hard?
Financial freedom is available to everyone! Believe that! And while the path to financial freedom is different for everyone, there are a few consistent truths underpinning all paths:
Savings alone will not cut it.
Creating savings is part of the “road to wealth” tool kit. But savings is not an end in itself. Generating savings is the first step to investing and creating that wonder of wonders – passive income.
Research has shown that without taking the next step to investment, many people reach a savings block – your savings are used for one emergency, then another, and pretty soon you realise that your savings are no longer growing.
When I first started saving, I put everything into my savings account which was linked to my primary checking account so that I could transfer funds back to savings—or even withdraw them at an ATM—just as easily as I put the money in.
Therefore, if I ever found myself short on cash, I would be tempted to tap savings rather than find ways to hold out until payday. Several years later, it struck me that if I did not separate my money I could never grow real savings. I had reached the savings block. That’s when I decided that I had to make a different decision.
That is when I started to put money into equities, money market accounts and other growth instruments. Many years later I realised that had I started on a path towards investing rather than savings only, I would have achieved greater financial freedom by now.
Once you have realised that you found the solution to your Savings block, the next step is to convert your savings into passive income and portfolio income. Easier said than done, right?
Understanding the financial markets can be daunting for even the most seasoned professional, let alone a non-financial investor. Navigating the markets can be risky and full of pitfalls but also great rewards. You can utilise the services of any experienced financial adviser to hold your hand and guide you to your goal of wealth and financial independence. Our Boutique Portfolio Management services will help you tailor your individual financial plan to meet your specific goal and needs.
Like other aspects of your life, the ability to be successful in investing requires hard work, knowledge seeking, professional assistance and budgeting. Building wealth is a constant part of a detailed life plan. You do not have to be born rich to become wealthy, but you do have to be consistent and committed. These are the elements that put the power to create wealth in your hands. This is a necessary element to attaining financial independence.
Here is your checklist to financial success:
