FINANCIAL MATTERS

3.Avoid debt

Building wealth involves avoiding debt because interest expenses can significantly erode your financial resources. When you accumulate debt, you commit a portion of your future income to repay not only the borrowed amount but also the interest charged by lenders. This interest expense can quickly add up, diminishing the money available for saving and investing.

By steering clear of unnecessary debt and focusing on paying off high-interest obligations, you can retain more of your income and direct it towards wealthbuilding activities. Ultimately, minimizing debt is a critical strategy for preserving and growing your financial assets.

Tip: pay off high-interest debt as quickly as possible and avoid adding new debt. If you must use debt, ensure it's for investments that are more likely to appreciate in value, such as real estate.

4. Plan for the long term

Having a long-term perspective on your finances is essential for building sustainable wealth. It involves setting clear financial goals, such as saving for retirement, purchasing a home or funding education, and developing strategic plans to achieve them. By focusing on long-term objectives, you can make deliberate and informed financial decisions, rather than being swayed by immediate desires. This approach encourages disciplined saving, smart investing and regular financial reviews, ensuring that you stay on track and adapt to any changes in your financial situation.

Tip: define your long-term financial goals and create a roadmap to achieve them. This could include retirement planning, saving for your children's education or building a substantial investment portfolio. Regularly review and adjust your plan as needed

The bottom line is that financial habits of the wealthy are not out of reach for the average person. By adopting these strategies, you can improve your financial situation and work toward building your own wealth Remember, the journey to financial success takes time and patience. Start implementing these tips today and watch your financial health improve over time.

Written and published by IG Wealth Management as a general source of information only. Not intended as a solicitation to buy or sell specific investments, or to provide tax, legal or investment advice Seek advice on your specific circumstances from an IG Wealth Management Consultant

Jacob Gaudet is an Associate Consultant on the wealth advisory team Gaudet Group Private Wealth Management. He helps clients get more out of their money, so they can get more out of life. Jacob specializes in six key areas: Investment, Retirement, Estate, Tax, and Insurance, and Mortgage Planning With more than 60 years of combined experience, Gaudet Group Private Wealth Management is committed to making clients’ interests their top priority. Do you have questions you’d like Jacob to Answer? Email him at jacob.gaudet@igpwm.ca or check out his website at GaudetGroup.ca!

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