A great number of people are willing to put up with long hours and really hard work to achieve financial independence or financial wellness. Yet many of the same people say they feel their life resembles a rat race, where no matter how much they chase their dreams of affluence, they never seem to reach it. What most don’t realize is that hard work is just one part of the formula required to reach real affluence, the other part involves the intelligent use of resources at hand to help preserve and grow their net worth.
Many people who say they can’t seem to get anywhere in their quest for financial security may not necessarily neglect savings, they may just be going about it the wrong way. These people would usually look at their income, deduct what they need for expenses, then calculate what remains. The problem is that for most people, expenses rise in direct proportion to income; in the worst of cases, expenses rise faster than income. This depletes whatever amount they may want to set aside for rainy days.
A chartered accountant Toronto may encourage people to be more resolute in their decision to save money. If people set aside money left over from expenses and do not control expenses, then they are not determined enough. People who really want to save money determine how much they want to save per month by deciding how much they want to accumulate over a period of time – they set goals. Then they divide those goals by the time remaining between the present and their target date. Once they have a figure, they more effectively budget by setting aside money they want to save, and then making what remains sufficient to meet their everyday needs. That means whatever happens they set aside what they have decided to save every single month till they reach their goal. You’ll find Toronto accountants quite capable of assisting with wealth management by visiting www.srjca.com.
Preserving wealth is another way chartered accountant in Toronto helps people. In today’s economy, money kept in banks only receive very small interest income. What makes it worse is that inflation rates now far outstrip any interest banks offer. The only way to counter these is to find stable vehicles for investment which has the potential to preserve and even increase the value of one’s wealth. The goal is always to preserve and, whenever possible, enhance the value of one’s holdings to meet or exceed set targets.
Members of the Chartered Professional Accountants Ontario often advise investing extra resources in such a way as to provide needed resources to meet pre-determined goals. The goals may be financing for the purchase of a car, the purchase of a home, college education for one’s children, comfortable retirement, etc. Whatever the goal is, so long as it is realistic in relation to a person’s earning capacity, a financial strategy can be implemented to preserve and nurture wealth.
One other thing that accountants advice with regard to planning for and properly managing wealth: it is never too early to start. A simple call to your accountant can start the ball rolling.