Diets and fitness regimes are the common new year’s resolutions, but sound financial decisions and goals could take you a lot further in 2023. Here are 5 simple initiatives that will build your wealth next year and beyond.
Like any new year’s resolution, you need a clear plan for getting there. Realistic benchmarks that are reachable are imperative for success. It’s important at the start of the year to know what is achievable for your portfolio and invest within your means. If it’s not achievable at the start of the year, reassess your goal objectives and adjust your plan of action accordingly!
Secondly, set a realistic budget and stick to it. This will help you reach your goals and see where you are overspending. There is no “one size fits all” budget—everyone is different. But sitting down to write a budget that works for you is a great start to building your wealth.
Start simply by working out your weekly or monthly expenditure. Groceries, mortgages, utilities and insurance, can all add up! Then look at how this compares to your income stream. It might help to seek professional advice from a wealth advisor; these experts can help get you and keep you on track.
3. Up your saving
It is so important to have savings account for unexpected emergencies. An emergency fund should cover three months’ worth of expenses. The New Year is a perfect time to start saving.
Can you make extra savings somewhere? If so, it could pay dividends in the future and you’ll earn interest while avoiding using your credit card for unexpected bills, like home repairs or vet bills. It’s a win-win!
4. Manage your portfolio
Diversify your asset portfolio—different types of investments can protect your wealth and spread your risk. The idea behind this is that having a higher number of investments will yield a higher return. This could include things like property and/or funds investment. Both are seen as strong ways to improve your wealth.
The biggest question on many investors’ minds is what next year will hold for property development and the building industry. But what is abundantly clear is that there is a serious shortfall of quality housing and investment opportunities across the country, something to keep in mind when budgeting.
5. Plan for retirement
If you want to maintain your standard of living when you retire, make sure you plan for this important milestone.
Consider a Self-Managed Super Fund to be actively in control of your super investments. Property development and property-related funds can be legitimate investments for SMSFs.
A well-designed retirement income plan should help you live the life you want to live, financially free, fun and with dignity.
If you have decided to seek help creating your wealth and making your dreams come true in 2023, contact our friendly Landen Wealth team. You can also use our website’s calculators to help you to get started, including our budget planner and our savings goal calculator.