Save Faster!
Get your savings moving faster
Sooner or later, most of us find ourselves thinking seriously about our long term personal goals and how we are going to achieve them. Perhaps you have already started to save, but have found that credit card and other bills undermine your plans.
Whatever your issue, here are some quick steps to get your savings moving faster:
- Take a hard look at your bills and see how you have been spending your money. Then work out where you can cut down.
- Identify your medium to long term personal goals.
- Make a realistic but firm budget to help you determine your savings capacity then stick to it.
- Have part of your salary regularly deducted from your account and transferred to a high interest savings account.
- Contact your financial adviser who will assess your individual needs.
Once you have considered the previous steps to increase your savings, you might want to consider investing in a managed fund. Purchasing units in a managed fund will spread your money across a variety of investments. Your money is pooled with many other investors, so you can invest in assets that you may not be able to as an individual.
Different managed funds specialise in different areas, such as shares (Australian and/or international), property, fixed interest investments and cash, or a combination of these via a diversified fund. Investing in shares within a managed fund may also provide tax benefits. You will need an initial investment of at least $1,000 to get started. If you save just $200 per month in a managed fund earning 7% per annum, within five years your investment would grow to $14,800 and within 10 years you would have around $32,332.
Despite the volatility sharemarkets around the world have experienced, it’s important to remember that markets are cyclical and shares are a long-term investment. Eventually shares will regain their value, but in the meantime opportunities may arise.
Your financial adviser can help you clarify your personal and investment goals and advise you on the full range of investments – shares, managed funds, listed property trusts and fixed interest. After recommending the investments that would best meet your needs, your adviser can help you implement your investment strategy and keep it under review.
