Why building personal wealth matters for everyone
The idea of building personal wealth is one that many people think isn’t for them. Personal wealth might seem unattainable, too ludicrous to even think about or downright impossible to achieve.
But we firmly believe that personal wealth should matter to everyone.
Most importantly, that everyone can reach it – no matter your age, career choice or life stage.
Building personal wealth is a long journey.
It takes time, effort and guidance. And it all starts with a shift in mindset.
Prioritise your personal wealth as soon as you can
Personal wealth management is more than just knowing how much you’re spending on takeaway coffees or having a budget that you refer to when you’re feeling guilty about your spending. It’s about establishing a financial roadmap that will help you reach any finance goals you might have – whether it’s a savings goal, reducing debt or investing for retirement.
We often hear from our clients that they’re simply too busy to focus on their personal wealth. They’re spending more time, money and resources on other areas of life, such as paying off their mortgage or growing a business. It’s common to think personal wealth might take too much energy away from these other crucial areas, but when you build your wealth in the present, you’re also using that financial roadmap to create a stable future.
Give yourself financial freedom and stability
Many people believe financial freedom is being able to walk into any store and buy whatever they want.
While that might feel freeing, we believe true financial freedom is the knowledge that no matter what happens, you have a financial safety net that will catch you if the unexpected happens.
Personal wealth is the key to designing and creating that safety net.
Have a comfortable exit plan
No matter how much you love your job, no one wants to work forever. But do you know how you plan on exiting the workforce? Sure, for many that day might be decades away. It’s easy to make the mistake of believing you can start thinking about retirement further down the track.
This is especially true for business owners, many of whom might be so time poor and focused on ensuring their business remains viable that they neglect their personal finances until it’s too late. Knowing what your exit plan is, whether it’s through a succession plan or selling off the business, will save you untold stress and headaches of trying to figure out how to make the leap from work to retirement.
But the sooner you begin thinking and planning for it, whether that’s through investing, superannuation, property or another venture, the more wealth you’ll be able to grow throughout your working life and the more you’ll have to live off comfortably when you retire.
Once you start getting your money to work for you through a personalised wealth management plan, you can start taking advantage of compound interest. And the sooner you begin, the more you stand to earn over time.
Begin with the end goal
Personal wealth and financial management are both highly personal. What’s right for someone will be wrong for someone else. The earlier you begin thinking about where you want to be in 10, 20 or 30 years, the more chance you have of getting there. We like to advise our clients to start with an end goal. If you’re a business owner, this might look like setting up an SMSF that will grow in the background alongside your business. That way, when it’s finally time to step away from your business, you’ve got financial backing to support you.
If you’re an employee, your end goal might be to work until a certain point, then transition to retirement and live off what you’ve accumulated throughout your working years.
Whether that’s done using superannuation, a well-structured estate plan or other financial avenues that best suit you, once there’s a plan in place, growth will occur.
Personal wealth is a long game, but we should all be playing it
Everyone’s personal finance goals, as well as the pathway to achieving them, will be different.
But the first step towards building your own wealth is to realise it’s a long game that you can – and should – start playing now.
While it does take time and effort in the early stages to research and set up the best wealth accumulation strategies for you, it’s worth it in the long run knowing you’re working hard now to support yourself in the future.
For support building personal wealth, contact our expert team of financial advisors at North Advisory.
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Recognising the uniqueness of each business, we specialise in customised accounting services crafted to meet your specific needs and drive business growth.
Don’t hesitate to contact us if you’re ready to streamline your financial management with tailored solutions. Your business’s success is our primary focus. Fill in the contact form or call us to book an initial 30-minute chat.
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Dee Why, Northern Beaches
NSW 2099
Australia