BREATHING LIFE INTO YOUR FINANCES
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GROWING YOUR MONEY

How much should you save?

Investment or investing is the process by which a person, company or trust purchases particular assets that make money for them. There are literally millions of different investments on the market today from simple cash through to complex derivatives and option trading. But determining which investments are right for you comes down to 3 key things:
1. What are you investing for?
2. How long do you wish to invest for?
3. What risk are you prepared to take to get a reward?

1. Why are you investing?
There are many different reasons for investing. Some of which will be to provide an income, to purchase new consumable items such as a home or perhaps an overseas holiday. Whatever the reason, you should be able to clearly identify what it is you want before you embark upon your next step.

2. How long do you wish to invest for?
This will vary person to person but essentially longer term goals will always have longer term types of investments such as shares or property. But it wouldn’t make any sense for you to be investing in shares when you have a short term view for purchasing a new vehicle in 2 years time. In this instance a fixed interest type investment may be more appropriate. What about your retirement goals? What do you really think you are going to do down the track when you ultimately retire at 65 or 70 (or whenever that’s going to be)? We’re all different. One of the most important ideas here, is to treat this goal as if you are retiring today. If you are retiring today and assuming that you’ve paid off debts, you’ve invested wisely and you’ve done all the things through the stages of your life, how much money in today’s terms will you need? Do you want this money weekly, 2 weekly or monthly? And what about the increasing costs of living…inflation? It’s best you don’t factor in an inflation rate. Just look at today and what you need.

3 What risks are you prepared to take to get a reward?
Risk and reward go hand in hand. Generally, the higher the return, the higher the risk so you will need to know your risk tolerance. Understanding risk with investments is one of the most difficult subjects. This is where Breathe Financial can help you to clearly identify what type of investor you really are. After all this will be the cornerstone of your future investing so understanding this is vital to your success with investing. Always keep in mind that there must be a reason for you wanting to invest. It maybe as simple as a return for income. It maybe its speculative and of a much higher risk with potential rewards being substantial but also a much higher downside when things go wrong. Who are you risk wise?

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0508 123 555