Get the basics right.
You have most probably heard this message over and over but there is a good reason for this – it is so important.
To use a time honoured building metaphor, the basics are the foundations upon which your wealth is built on.
Get the following right and you’re well on your way:
- Start early – the earlier you start the more you can earn (remember about the power of compounding returns)
- Invest often – rather than accumulating a large sum before you invest, invest little amounts often
- Reinvest distributions – resist the urge to spend your earnings
- Be goal driven – know why you’re investing
- Pay yourself first – you’re your most important creditor (it’s your time and effort after all)
- Diversify – this is the old ‘don’t put all your eggs in the one basket’ story
- Focus on investing not timing – how long you’re in the market is more important than worrying about when to enter the market
- Invest for the long term – concentrate on long term returns rather than daily fluctuations.
Then there are what could be called the overarching rules:
- Understand how you respond to risk;
- Always consider your own unique financial situation.
Our members’ financial planners help you to focus on getting the basics right