By Alexandra Cain
Consistency is the key when it comes to building wealth. But it’s also essential to tweak your strategy over time and consider how currency fluctuations may impact your portfolio.
Peter Foley, director of financial planning firm Thirdview, notes true wealth creation is achieved through capital expansion.
“That means growing the value of your assets as opposed to your income. However in order to do that. You have to start by making sure you spend less than you earn, so you have money to invest. As simple as this sounds, lots of people struggle because they don’t have a goal as to why they’re investing. So, know why you’re investing in the first place.”
Gerry Incollingo, managing director of advice practice LCI Partners, says it all starts with making more money then you spend.
“Establish a long-term way to ensure revenue is greater than your outgoings – outgoings include necessities and debt. Passive income is a great way to ensure this. Trying to establish more than one stream of revenue is beneficial to increasing your wealth,” says Incollingo.
“Putting aside a certain amount of money when possible is going to help you to be able to park money into investments when they arise. To do so, I advise establishing a plan to maximise savings. You can also track your spending and trim down expenditures that may not be a necessity. When investing I recommend diversifying exposure as much as possible. I personally invest in places that interest me. This ensures I’m proactive with my investments and stay on top of them,” he says.
Maintain your focus
Having a strong long-term discipline about wealth management starts with your money mindset.
“I encourage clients to consider their relationship with money. Has it been healthy in the past? How would you like it to be in the future? Often, people tell me that they could do some things differently without too much stress. This kind of a refresh is great because it creates the chance for a new beginning where the focus on money is a positive. That in turn leads to the realisation that money is a tool and can be put to work to create wealth,” says Foley.
When it comes to maintaining your focus on wealth management over time, Incollingo says it’s essential to always be on top of your wealth.
“A lot of investments could be cyclical. Be on top of factors like this. Be on top of new trends. Try get in early. Know when to get out of your investments. Establish a good exit strategy. This can be done by setting profit targets or time lines.“
The main triggers that may prompt a need to reconsider your current strategy include a change in life goals, such as deciding to retire earlier, a change in life circumstances such as marriage or divorce and a change in economic or market conditions.
“All of these are critically important points to review your goals,” says Foley.
Currency movements should also be a focus for regular investors and traders. FXCM provides desktop, web and mobile trading platforms for retail investors, with the ability to access the market to trade whenever they want.
“Our platforms include education, such as live webinars, on-demand videos and trading guides, as well as research which helps our customers keep track of economic events, market news and other relevant insights. We also provide free practice accounts which simulate live market conditions but without the risk so traders can learn the ropes or test our different strategies,” says Sameer Bhopale, Chief Marketing Officer of FXCM.
“Overall, our goal is to provide global traders with access to the world’s largest and most liquid market by offering innovative trading tools, hiring excellent trading educators, meeting strict financial standards and striving for the best online trading experience in the market,” he says.
Above all, whenever you’re investing, be clear about your purpose and disciplined in your strategy. The idea is to get good advice and stay the course. That’s the best way to manage your assets and build wealth over time.
Source: Thanks smh.com