Top 5 tips to build wealth

I’m sure we’ve all pictured the life we’d have if we won lotto. It’s a nice dream but unfortunately the chances are slim, in fact you’re more likely to date a super model or win an Olympic gold medal than have all your numbers come up.

So, if you don’t want to leave your financial freedom to chance, it’s time to quit the fantasy and instead focus on ways to build your wealth.

Key learnings covered in this topic

Ways to help you build wealth
The value of financial discipline
How to grow your super
How CareSuper can help you reach your financial goals.

Here are some tips to get you started:

1. Create financial goals

People who are serious about building wealth set themselves goals. They assess their current financial situation and make plans for how they’re going to reduce their debt, build their savings and invest for the future. Create momentum by starting with goals that are achievable and have a deadline, and don’t forget to reassess your situation often.

2. Do your research

There are lots of schemes and incentives to help you build wealth, you just need to look. For example, for entrepreneurs there are small business grants. To become more sustainable there are various state government rebates. And to help you save for your first home there’s the First Home Super Saver Scheme, which lets you take advantage of a reduced tax rate within super to build your deposit faster.

3. Learn how to invest

One of the best ways to build wealth is to learn the ins and outs of investment markets, and a good place to start is with your super. There are 12 investment options to choose from, each with a different level of risk and return to suit your life stage and personality. And for more control there’s the direct investment option. This lets you choose a range of shares, ETFs, listed investment companies and term deposits to combine with other CareSuper options for a more tailored portfolio.

4. Develop financial discipline

Unless you have family money or you invent pain free tattoo removal, building wealth is going to take discipline. This will mean both small and large sacrifices and ignoring people living the high life on social media. Concentrate on your financial goals and continue educating yourself on all things finance. Did you know as part of your membership you have access to a number of financial webinars? Have a look at what’s coming up.

5. Be patient

For the majority of us, wealth won’t happen overnight. It might seem like your savings are taking too long to grow but stick with it. Through the magic of compound interest a little can turn into a lot—you just need to give it time.