As parents, we want the best for our children. Whether that be private school education, regular family vacations or setting up our children for success by providing them with a deposit for their first home.
Financial security is the cornerstone of a happy, healthy and strong family unit.
Research confirms that financial stress is the NO. 1 cause of relationship breakdowns and martial unhappiness.
Below we outline strategies to secure your family’s financial future.
THE KEY is for partners to agree on shared goals and ensure they stick to them.
This week we share our 11 PROVEN STRATEGIES to set up your family for financial success.
- Buy stable assets such as property – Property works threefold, 1.) providing passive income through rent, 2.) capital appreciation (property doubles in value every 10 years) and 3.) provides many tax deductions.
- Buy insurances and health cover – income protection, loan protection, life insurance and health cover will provide peace of mind and offer considerable support during a time of crisis.
- Show children how to save – children are not educated at school on critical topics such as savings, investing, wealth creation. Often, they will learn the hard way after decades of financial struggles, spending beyond their means, relying on credit card debt and living in the “rat race”. If Children are introduced at a young age to investment and savings strategies, this will become the norm for them as they grow up. We believe that having a property wealth mindset is the most critical factor for financial freedom. This wealth mindset should be taught from an early age, ensuring that your child have a strong understand of wealth fundamentals before they leave home.
- Equity is your friend – conduct regular valuations on your property. Once there is enough equity, you should pull the equity out and buy another property. This is the strategy Zaki used to create his extensive property portfolio.
- Utilise your superannuation – set up a SMSF and buy property. Case study example: Using $120K, a loan is taken to buy a property valued at $400K at the age of 35. As property doubles in value every 10 years, at the age of 75, this property will have an approximate value of $6 million. However, if you had left your super ($120K) in your superfund over the same period, your approximate super value (based on a 5% growth rate per year), would be $900K at the age of 75. $6 million or $900K? – the choice is yours!
Talk with Zaki about how you can secure your family’s financial future through property.