3 December 2020

GROW MY WEALTH | Balance Accountants & Advisers

Grow my wealth
Developing a long-term investment plan
can help you build wealth to achieve your goals and dreams, like owning a new car, taking a holiday, buying your first home and enjoying a comfortable retirement. We can help you grow your money to achieve your goals, whatever they may be.

Budgeting and saving
Start by knowing where your money goes.
Draw up a detailed budget plan, and divide your expenditure into essentials and extras. You can access some useful budget planning and financial health check tools at the Federal Government’s ‘Understanding Money’ website.

Investing your money can be easier than you might think,
especially with our help to guide you through the investment maze. Visit the Federal Government’s ‘Understanding Money’ website for an overview of investment basics.

Managing Debt
While irresponsible use of credit cards and personal loans can leave you with mounting repayments, some types of debt can actually help you create wealth.
An example of this is gearing, which involves borrowing funds for investments in shares and property. Gearing can improve your cash flow and generate wealth. But it does have inherent risks and only works when the after-tax capital growth and income return exceed the after-tax cost of borrowing.

Case study: Jarrod pays off his mortgage sooner
Jarrod has a $320,000 mortgage with an interest rate of 9.74 per cent per annum and is making monthly repayments of $2,840. By sticking to monthly payments it will take him around 32 years to pay off his mortgage, for a total cost of more than $1,080,000. But by switching to fortnightly repayments instead, Jarrod can save ten years and over $300,000.

The Example is illustrative only and is not an estimate of the investment returns you will receive or fees and costs you will incur.

MDM Financial Services Pty Limited (ABN 78151835479), trading as Balance Financial Planning, is an authorised representative of Charter Financial Planning Pty Ltd, Australian Financial Services Licensee.
General Advice Warning
This website contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information.


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