There's no doubt that the cost of living is significantly rising and it's only going to become more difficult to keep up with inflation. It's a painful reality, even just to think about.
The matter of fact is, unless people (especially the younger generation) do something about it now, they're going to be faced with a life time of financial hardship. Our mission at REIF throughout 2021 has been to educate a larger number of people about finance, property investment and passive income. The fundamentals that should be compulsory within secondary education systems around the world.
Invest In Passive Income ASAP
Passive income is money that is earnt with very little time and effort required to be invested. You can start creating passive income by investing your money into an asset that produces you further income. This income then keeps on growing without you needing to do much. People often refer to passive income as an income that gets your assets eventually working for you.
Our suggested method for creating passive income is through property investment. As we discuss time and time again, property is a secure investment asset class and is less likely to fluctuate. The value of property tends to appreciate over time.
For years, millionaires have been utilising passive income to become richer. While you're creating active income as a young person, it's important that you start to save up a portion of that to eventually invest into multiple streams of passive income.
We've been told for a while now that by the time Generation X come to retire, the Government will phase out the pension for retirees; hence Superannuation. Despite this, to live a comfortable life post-retirement, we will need to also have our passive income streams working for us. This is an additional safety net financial experts encourage to protect against the potential for financial failure.
Track Your Finances and Mortgage Rates
Financial education is an imperative tool to help you understand how to utilise and save your money effectively. Once you know how to save money, creating wealth becomes easier because it allows you to track your spending habits and establish goals that can get you to where you want to be financially.
Understanding how finances work and specifically, your own personal finances can allow you to lead a better quality of life. It provides you with the knowledge that is needed to build it up and utilise it to work for you in a beneficial way.
The Tax System
All individuals are required, by law, to pay tax if they are making an active or passive income. Understanding how the tax system works is imperative to knowing how much you're required to pay according to your income threshold and claiming returns at the end of each financial year.
Knowing how the tax system works is also important because it can allow individuals to legally claim back deductions on passive income earning assets to make you more money. To learn more about how this works, we recommend watching this video which explains the strategy a little bit better:
To See How You Can Get Ahead...
For more information or to consult with a financial specialist to help you create wealth for your financial future, please reach out. We would love to help as many people as possible be set up for financial independence. Our details are listed below.
Ph: 1300 130 932
Email: clientservices@reif.com.au
