How to make smart long term financial decisions
A recent article in ‘The Palm Beach Letter’ by Wealth Coach, Mark Ford, highlights the importance of using a simple mathematical technique when purchasing items big or small. The aim is to help you make smarter long term financial decisions.
The article outlines some basic steps for making investments and purchases like cars and houses and even to your basic set of Golf Clubs.
These techniques include:
- Realistically estimating how many years you will actually use the desired object, then calculate its total cost of ownership on a yearly basis by including all holding costs and ongoing expenses. This is done so that you find its true cost of ownership each year.
- When making decisions about buying, renting, or leasing anything, always remember to include all of the costs involved. Then divide them by the number of years you expect to use the item you are buying.
Ford suggests that by following these simple techniques, you will be better placed to understand the true cost of that item and whether it makes more sense for you to buy, rent or hold off on purchasing. Compare these costs to your budget and be honest with yourself as to whether or not you can truly afford the items. By doing this you start to do the things rich people do, rather than just pretending to be one.
If you are looking to make a long term financial commitment of any sort, taking 5 minutes to read this article will help you make smarter decisions and have fewer future regrets.
If you are serious about taking your wealth to the next level, I encourage you to speak with one of our financial strategists today for a No Cost, No Obligation consultation on 03 8657 7640 or email [email protected]. We would be more than happy to review your current arrangements and give you the advice you need for a more secure financial future.
The information contained in this report is General in nature and has been prepared without taking into account your objectives, financial situation and needs.