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Wealth creation – what works for financial planning clients

17 August 2017

Money & Life team

Money & Life contributors draw on their diverse range of experience to present you with insights and guidance that will help you manage your financial wellbeing, achieve your lifestyle goals and plan for your financial future.

Want to know how to set yourself up for a better financial future? Get tips from 6 top financial planners on behaviours that lead to success in wealth creation.

1. Set goals and make a plan – Michelle Tate-Lovery CFP®, Principal Adviser and Director, Unified Financial Services

Knowing what your goals are and how you’re going to get there is a very important first step on the path to wealth creation.Start with getting clarity and taking stock of where you are financially,” says Michelle. “This includes what resources you have (such as your assets and your income), where you want to head, and what you want out of life and when. Beginning with the end in mind, costing your goals will provide you with purpose, drive, a sense of control and confidence.”

2. Secure your savings – Tony Sandercock CFP®, Owner and Financial Planner, wetalkmoney

According to Tony “spending less than you earn and doing something smart with the difference is the absolute foundation of wealth creation.” Automating the savings process will ensure you’re going to keep saving, no matter what sort of temptation crosses your path. “Pull money automatically from every pay cheque into retirement accounts, savings accounts or additional debt payoff……before you have the chance to spend it,” says Tony.

3. Start early – Adele Martin CFP®, Managing Director and Senior Wealth Adviser, Firefly Wealth

When is the right time to start investing? Once you’ve cleared the decks of expensive personal debt, like credit card balances, the sooner you can start building your portfolio, the better. “The clients I’ve seen who’ve generated significant wealth, started investing early,” says Adele. “I had one client who called himself “the accidental millionaire”, because he bought a particular bank share many years ago when the bank first listed and he had the dividends reinvested. As a result, he became an accidental millionaire. But it’s never too late to get started with overhauling your approach to planning, saving and investing. By taking action today you could be looking forward to a future that’s just as rosy as Adele’s “accidental millionaire”

4. Seek advice from experts – Darren Withers CFP®, Head of Strategy Advice, Elston

Doing the research to make the right decisions for your financial future takes time and energy. And whether you’re just starting out with some modest savings or looking to secure a better retirement in 10 years’ time, you want to make the most of what you have – in terms of time and money. So it makes a lot of sense to outsource this so you can focus on earning an income and pursuing other lifestyle goals. “Financially successful people take professional advice,” says Darren. “Investors have often realised that no one person can be good at everything. So, they stick with what they are good at and then surround themselves with people who are experts in things they are not.”

5. It pays to have protection… – Kelly Pillay CFP®, Director, KLI Accountants & Wealth Managers

Having the right insurance arrangements is a big part of being responsible for your financial well-being. And even wealthy people can benefit from having insurance that saves them from taking a big financial hit when life takes an unexpected turn. “Good wealth creators understand they are working hard to build wealth and put adequate insurances in place to protect against unforeseen events,” says Kelly.

6. ..And patience too – Gil Gordon CFP® AEPS® Proprietor and Senior Adviser, RI Lower Hunter

Once you’ve made your financial plan and put it into action, you need to back yourself and have the patience to see things through. Gil Gordon’s advice is “to always play the full 80 minutes. There are many ways to win the game of wealth, be it property, shares, gearing, self employment, dollar cost averaging or salary sacrificing to super,” he says. “Chopping and changing strategies normally creates a mess.”

Whatever your goals and measures of financial success may be, a CERTIFIED FINANCIAL PLANNER® professional can offer valuable advice on taking steps towards building wealth. Find a local CFP professional today using Match My Planner.