We all know how to spend but do we know how to save?
The following quick quiz will help you determine whether you are comfortable with the success of your saving and investment habits.
Do you remember the first full-time salary you earned?
If so write it down.
Do you know the highest salary you were paid? (For most people this will be their current salary.)
Write it down.
Total the two salaries. Divide by 2 to get the average .
Multiply this average figure by the number of years that you have been working.
Total Gross Income you have received to date
Note: If you are married you should have your spouse also complete the above and add the two gross incomes together.
Now do a list of your Assets:
- Investment Property
- Bank account
Now do a list of your Liabilities:
- Credit card
- Car loan
- Personal loan
- HECS/ HELP debt
Subtract the total Liabilities from the total Assets
Are you happy with the assets you have acquired so far during your working life?
What areas do you feel need improvement?
From my experience the people with the highest salary are not necessarily the most financially independent. It is probably 70% disciplined saving and 30% earnings or income.
To accumulate wealth you need to set goals, create a strategy to achieve these goals and regularly monitor your financial position.
If you are looking for a financial planner in sydney to help build your wealth, get in touch with Peter Quinn by filling out our contact form, or give us a call on +61 2 9580 9166 to book an obligation free appointment.
The information in this document does not take into account your personal objectives, financial situation or needs and so you should consider its appropriateness having regard to these factors before acting on it. It is important that your personal circumstances are taken into account before making any financial decision and it is recommended that you seek assistance from your financial adviser.