How to Build Wealth AND Enjoy Life - Final Part 4

Welcome back to the final leg of our “Building Wealth While Having Fun" series. Today, we're getting real about the golden ticket to financial success – starting early. It's time for some no-nonsense talk on why kicking off your wealth journey as soon as you can is the real deal.

The #1 Game-Changer

If there was one last vital aspect to building wealth while enjoying your life, it would be starting early. Consistent savings and investments from early in your financial journey are a game-changer. Whether it's contributing to KiwiSaver, a managed fund or a simple savings plan, the power of dollar-cost averaging and compound interest can work wonders, and make building wealth while enjoying life significantly more manageable. 

Embracing the unpredictable nature of investment markets, especially when starting young, is a key principle for financial success. While the prospect of market downturns might seem daunting, it's essential to see them as opportunities rather than setbacks.

During these down markets, maintaining discipline and continuing regular contributions to your KiwiSaver and/or managed fund can work to your advantage. Even with a reduced balance, consistent investments, whether it's $100 a fortnight or a monthly contribution, mean you're purchasing more units at a lower price – also known as dollar-cost averaging.

As markets inevitably rebound as they always have in the past, you'll find yourself with a more substantial portfolio due to accumulating units during the market lows. Starting early with savings or investments is especially crucial for those in their 50s as understanding investment time frames is essential for planning beyond retirement (e.g. not running out of money). 

 

Series Summary Checklist

In essence, building wealth while having fun necessitates a multifaceted approach.

First, you must understand your money personality and steer clear of extremes like austerity or recklessness to ensure sound financial planning.

Second, create goal-oriented accounts to foster clarity and prevent unexpected setbacks.

Third, navigate the world of credit card rewards with caution, align your strategy with your money personality, and maintain financial discipline.

Fourth and final, make it all easier on yourself by starting your wealth-building journey early, through strategic savings and investments. Set yourself up with good money habits while utilising the power of compound interest and dollar-cost averaging. 

 
 
 

Ultimately, building wealth and enjoying life at the same time can be a tough task, but we are here to assist you in your journey. Feel free to get in touch with us at FoxPlan for a free chat about getting started. 

Holly Jones