Not knowing the lay of the land is going to get you lost. It helps to know where you’re going in your financial life. The goal for everyone; individuals, companies and investors, throughout their financial lives, is wealth creation.
Wealthy people protect their wealth through financial systems, and our mission is to give you the insight into those systems and shift financial that control to your bank account.
The cornerstone of creating Wealth is understanding your income potential.
One of the most common basics is Budgeting. Conducting your financial life without a budget is like driving drunk or not watching what you eat. Sooner or later, the consequences will be fatal.
There has to be a positive goal informing your choices. This ensures you make the right decisions. Budgeting means wealth is in your hands and only you have the power to pay yourself by limiting luxuries and converting that into investments.
It is the one solid way to manage adversity in financial life. Insight brings relief from stress by giving clarity on your total spend each month.
Breaking it down into weekly and daily thresholds. Knowing what you can afford means knowing what’s best for you in your financial life. That’s all budgeting is.
Knowing precisely what your fixed expenses are (bills, rent, utilities) and basics (food, recreation) gives you the independence necessary to live your financial life.
Once you harness the clarifying power of “putting it all down on paper”, you’ll be amazed at the relief it brings. You finally have control.
Pillars of Wealth Creation
Budgeting ignites the real engine of wealth creation: saving. Savings must be accumulated to be invested for the creation of passive income and the preservation of capital to grow over time with interest.
Accumulating your Savings to Invest
Too many of us abandon saving out of prejudice. We have an unexamined belief that life is too expensive. We tell ourselves our income barely covers our expenses. Having a budget allows you to objectively evaluate spending habits.
It shines a light on your financial life. Budgets reflect the choices you’re making. They may reveal that you’re not spending money wisely. Increased awareness means you “think before you spend” and cutting out waste is the surefire way to begin saving.
Using money intelligently might as well be the definition of budgeting. We are always faced with difficult financial decisions.
After all, wealth creation depends on buying assets that will grow in value.
Do you purchase property or rent and save the difference?
Knowing where you stand financially makes answering fundamental questions like these easier.
Budgeting brings you back in control of all the variables in your financial life. In this case, it would empower you to save the difference when renting rather than buying a home.
Retirement Planning is a crucial step to Wealth Creation.
This entails saving, which is the direct outcome of budgeting. The positive goal is to retire financially independent. According to statistics only 6% of South Africans retire well.
The majority end their working lives wishing they were financially independent. Budgeting ensures you are part of the 6%.
Estate Planning is often left for later in life but it is never too early to begin taking control of our financial lives. Lifelong estate planning, from the dawn of regular income, enables you to accumulate assets and save your beneficiaries a lot of money.
This is how wealth is generated across generations. Your loved ones are the inheritors of your financial decisions.
Planning well is about taking care of the people who are closest to you.
Your Last Will and Testament
Your Last Will and Testament can be a powerful tool of Wealth Creation.
It acts as a financial reserve TAX free to your beneficiaries. Businesses do this and so can you.
We all have the opportunity to leverage of the financial system to our personal advantage. It is your productive legacy.
Consulting an experienced professional is important.
An improperly drafted Will can be a source of discord. Ensure you are remembered as someone who took responsibility for your financial life and left a legacy.