It’s important that once you identify spare money and begin allocating it to your goals that you continue to build on that foundation and momentum.
You will be guided on what the best types of investments are the best to use for each of your goals – with special attention paid to your timeframes. It’s also important for you to understand how much exposure you should have to each type of investment given your tolerance towards taking risk.
In other words, you will allocate your extra funds to assets that balance:
- your comfort levels, and
- your need for a return big enough to get where you need to be.
While you are building towards your goals you will also establish an emergency fund, protect your assets with appropriate levels of insurance cover and sort out your wills and estate planning so that if anything does go wrong, your wishes are taken care of and the lifestyle you are building isn’t jeopardised in any way.