The 6 Laws of Wealth
Understanding that our behaviours can either help or get in the way of making good financial decisions is key. Following these 6 Laws of Wealth will have a great impact on your growth of wealth over your lifetime.
1. No BAD Debt
2. Saving
3. Investing
4. Diversification
5. Patience
6. Focus on Personal Growth.
1. No BAD Debt
What is good debt vs. bad debt? Good debt usually refers to debt you’ve taken on that will ultimately increase the value of an asset, like taking out a mortgage to purchase a home. Bad debt is debt you’ve incurred to purchase items that don’t generally increase in value over time.
2. Saving
This is an easy task for some, but can be very difficult for others. At Newton Financial we suggest creating a budget to track your spending and see where there may be opportunities to shave down your expenses and save some money.
There are many apps out there that can help you with this.
3. Investing
Investing can be described as using some of your money with the aim of helping to make it grow by buying assets that might increase in value.
At Newton Financial we can support you in your investments through Registered Retirement Saving Plans, Tax Free Saving Accounts, Registered Retirement Income Funds, Mutual Funds, Registered Education Saving Plans, Non-Registered Investing, Estate Planning, Tax Deferred Investing and Pension Rollovers.
You can learn more about all of these avenues by clicking here.
4.Diversification
Diversification is the practice of spreading your investments around so that your exposure to any one type of asset is limited. This practice is designed to help reduce the volatility of your portfolio over time.
5. Patience
Building wealth is the same as running a marathon as it requires patience and discipline. With this in mind, having a proper set of strategies to manage our income can help us to accumulate wealth over time.
6. Focus on Personal Growth
Personal development or self improvement consists of activities that develop a person’s capabilities and potential, build human capital, facilitate employability, and enhance quality of life and the realization of dreams and aspiration.
Put an effort into working on yourself!
If you have questions about anything in this article, please feel free to contact us.
