Take control of your money
By keeping track of your spending and setting an achievable budget, you’ll be able to determine your saving and investment capacity.
To take control of your money:
- Identify your medium to long-term goals and prioritise them.
- Look at your bills and spending and work out where you can cut down.
- Identify debts with the highest interest charge and pay off as a priority.
Saving is putting money aside for short-term goals or as a back-up in case of an emergency. While relatively safe, savings are generally placed in accounts earning relatively low rates of interest.
Investing is putting your money to work for the longer term, to build wealth and increase your financial security. To determine if an investment is right for you, review your objectives, timeframe and risk tolerance.
All investments carry a level of risk. Generally, investments with higher rates of return over the long term have a greater level of risk over the short term (i.e. returns may fluctuate up and down). Whereas investments with lower risk usually have a lower long-term return.
- Have part of your salary regularly deducted from your account and transferred to investments with a higher rate of return.
- Invest for the medium-to-longer term.
- Growth investments such as property and shares, although higher risk, generally offer a higher return over the longer term.
- Avoid investments that sound too good to be true because they often are.
- Consider investments that are more tax effective such as Australian shares.
- Contribute more to super as this is one of the most tax effective investment structures available.
- Diversify to help reduce risk by investing across a range of asset classes.
Your first consultation with a Bridges financial planner* is complimentary and obligation free.
It’s an opportunity to discuss your expectations and aspirations, as well as your financial circumstances, needs and goals.
Connect with a Financial Planner
Call 133 282 or find your nearest branch.