“Early to bed and early to rise until you get enough money to do otherwise.” Peter’s Almanac.
“Wealth is nothing more or less than a tool to do things with. It is like the fuel that runs the furnace or the belt that runs the wheel – only a means to an end.” Henry Ford
Everyone has a different perspective on what wealth is. How much wealth do you need? How much wealth do you want? Some see accumulating wealth as necessary to allow them to live the life they want, to be independent and free from commitments. Others spend their whole lives focused on wealth accumulation.
Are you accumulating wealth? Do you have a plan in place to accumulate wealth tax effectively? Are you getting wealthier each year? Do you need to be?
Too many people will not have enough to achieve their goals. too many people have not increased their wealth from one year to the next.
“Success is being able to do what you want, when you want, with whom you want, in a manner that you want.” Colin Dunn, PANALITIX
Having enough wealth and particularly cash available for discretionary spending allows you to plan your business and life to be in a position to do this.
All business owners should have a wealth accumulation plan. All too often successful businesses grow and all profits are reinvested in the business or drained out by the owners and mismanaged. A downturn comes and the businesses fail leaving the owners with nothing to show for all the successful years the business had.
Ask yourself this question. As at 30th June this year, was or will my wealth be greater than as at 30th June a year earlier? Do you know the answer? If it decreased, why? Is this a trend? If it increased, are you happy with the amount it increased? If it increased by the same amount each year will that be enough to meet your goals.
Apart from winning lotto or receiving gifts or inheritances, there are two ways to accumulate wealth. The first is to generate surpluses each year from your business. The second is what you do with these surpluses. If you invest the surpluses in growth assets such as property and shares then your wealth should grow with capital growth over time (albeit with some capital decreases along the way). If the surpluses are used to reduce debt, your net wealth will have grown and your surpluses each year will be better from the interest savings. If you reinvest the surpluses back into the business you may increase it’s future profitability and therefore it’s value.
“After the game, the king and the pawn go into the same box.” Italian Proverb
Flor-Hanly works with clients to help them FOCUS on accumulating wealth tax effectively over time to allow them to meet their goals and allow them to do “what they want, when they want, with whom they want, in a manner that they want”.
Contact our accounting team on (07) 4963 4800 or email to arrange a complimentary discussion on how we can work with you.
Copyright © Flor-Hanly 2021.
Liability limited by a scheme approved under Professional Standards Legislation