Money plus interest = money working for you = MORE PROFIT

Money plus interest = money working for you = MORE PROFIT

Gosh where did the last year go? It doesn’t seem like five minutes since I was celebrating my birthday last year with friends in a groovy restaurant bar in Charlotte Street in London. This year, as I write I am inside the current apartment as Hurricane Earl blasts, moans and wails outside! One of the downsides of being in the sun and near the beach! We’ve been on purple alert since last night (we aren’t allowed to venture out basically and the water has been turned off…luckily we still have electric at the moment. Hence being able to write!!!)

So much has happened in a mere 12 months. Time is something we cannot control.

However we can use it to our advantage in the longer term. Particularly where wealth is concerned. One positive phenomena in wealth and time is compound interest. I know the majority of interest rates are only just covering inflation at the moment – but this will not always be the case and if you have more pounds or dollars to invest – some financial vehicles will give you more bang for your buck and higher interest (with possibly more rules too!)

Property is a favourite as it does increase in value in the LONG TERM. However – money plus good interest or investment = money working for you = MORE PROFIT TO RE-INVEST.

Many of you probably have pensions or property for when you retire. You may have shares or be trading on the stock market. Have you revisited these recently? My wealth has primarily been build using property, I understand it and I enjoy it. I advise you always to invest in something you COMPLETELY UNDERSTAND. Everytime I’ve wanted to make a quick buck or not done all the due diligence I have LOST A LOT OF MONEY!! So always do your homework!

I strongly believe you need to live in the moment (and sometimes spend in the moment if it’s to do with a fab pair of shoes or chocolate) – however where wealth is concerned you also need to have one eye or ‘account’ on the future. Now that I have a baby girl – the wills have been redone, life cover looked at, opened savings accounts for her and re-looking at our own wealth building strategy. Later I plan to buy a house for her and keep the cash in bricks and mortar. If I am renting it out with a good return – the proceeds will be used for most of her needs as she grows up. It is a LONG TERM INVESTMENT.

Will it cover private school, university, holidays? Can we continue to live the lifestyle we’ve grown accustomed to? For those of you that are single – you may be asking other questions – such as how will I pay my mortgage off sooner rather than later? Do I need to prepare my financial plans without a future partner? I may sound a little negative – (as I do believe there is someone out there for everyone) Having said that, many of my friends in their 30’s and early 40’s in London ARE single and ARE making plans to cover their own income and in some cases buy a property on their own – which is not easy for many! But you still have to think and act on it.

The point I want to make is that whatever you do TIME is going to pass by quickly and you DO NEED TO HAVE A PLAN. Like most of our clients they just don’t like thinking about money or planning what to do with it. Many do not know how to grow it wisely through investing in cash generating assets – like property (if done correctly – I’ve actually had lots of cash draining issues from some of my properties recently!!! So there are pros and cons regarding balancing the books)

So just to recap what you can ask yourself re planning for your future:

• What is my current financial plan to retire (ideally young and wealthy)
• Have I explored the best ways to invest any of my surplus cash at the moment. (even if its just a few $ or £ a month – it ALL COUNTS)
• Are my children covered?
• What can I put into my children’s name to strengthen any estate issues on my death?
• Are my wills complete?
• Can I educate myself or talk to a financial coach or ISA qualified individual to see how best to invest my money?
• Who do I know who is already a millionaire or independently wealth who can MENTOR me to do the same?

HAPPY PLANNING, SAVING, INVESTING AND EXPLORING!

Have a fantastic month!

To your health, wealth and success

Amanda x

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