The story of creating wealth

The sooner you build your savings and then start to invest those savings, the faster you will reach your goals. The reason for this is time has a compounding effect on your money. In other words, interest you earn over a period of time (through shares, managed funds etc) is earned on the money you originally invested plus all the interest you have accumulated since day one. So – the longer you invest, the more money you earn. Not only that, the sooner you start saving money, the sooner it becomes a habit.

Start saving – here's why:

Investing some money regularly is an excellent way of meeting your goals. When you put away a small sum of money regularly you can build a good size sum over time.

The simplest method of saving is to have a savings plan. A savings plan assists you to save money that you can then invest so as to increase your returns.

Maximise your savings and diversify your investments

You can get more bang for your investment buck through using high interest cash management accounts or term deposits or by investing your money wisely.

Protect what you have

Superannuation, property, savings plans, managed funds and direct shares are all very effective vehicles to help you reach your financial goals, create wealth for yourself and live a comfortable retirement.

It's vital that you protect your wealth and your family's security now and into the future. The way to do that is through life insurance products.

Your advisor will help you select the best type and level of cover for your lifestyle.

Tips

• Needs change over time so identify your goals and what your financial needs are regularly
• Be aware of your risk tolerance.
• Set time frames for your goals.
• Get advice from a Professional Investment Services advisor.
• Be realistic.
• Balance your savings strategy with your risk tolerance, your goals, and your timeframe.
• At your age it's vital that your plan includes your plans for retirement. This should be a priority.