Business News

Money makeover, day six – the perfect money plan

| More

by Peter Switzer

“The secret of success is sincerity. Once you can fake that you’ve got it made.”

So wrote Arthur Bloch in Murphy’s Law Two.

Everyone wants a reputation for being really charitable but few of us are prepared to sacrifice a whole lot to get this high community rating. Well, to be good with money, you can’t fake it. You have to sincerely commit to a smart plan. A successful money strategy is not simply copied, as your circumstances could differ largely from others.

The anatomy of a good plan

To at least give you an idea what constitutes a good plan, you will see below some of the best money tips going around.

Note, not all of them will suit you, but at least they will give you an idea about what the smarties all know and what they are doing.

Assess your current financial position and set some money goals.

Do a realistic budget to find out what you can save.

Start saving and save more

Go to a financial adviser or train yourself.

Treat tips or get rich schemes with suspicion.

Don’t invest or save in only one area

Pay off a house or a unit as quickly as you can.

Use negative gearing to buy things like an investment property, shares and/or units in a managed fund.

Superannuation is sensible and tax-effective — maximise your payments into super.

Tax tricks can help a good investment get even better.

Copy the wealth-building habits of the rich.

Research where your money is heading — it’s dumb to lose a fortune and complain that “so and so told me to put my money there.”

Always remember — the higher the promised return, the higher the risk.

Setting up your own successful business can absolutely kill the returns possible as a passive or sideline investor.

Over the next six days, I will look at these wealth-building gems that can make your bank balances have the sparkle of diamonds!

For advice you can trust, contact Switzer Financial Services.

Important information:This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice.

The Switzer Super Report is a newsletter and website for self managed super funds. With exclusive commentary from Peter Switzer and Paul Rickard the Switzer Super Report will help you maximise your after tax investment returns and grow your DIY Super. Click here for a free trial or subscribe today.

Published on: Tuesday, December 29, 2009