What can be done to make the most of an individual’s resources and assets?
Resources are not just the gold, silver or iron ore we find in the ground. There is a gold and silver resource in our own internal energy to earn an income and the savings component of that income. Once we establish the level of the savings component this can be applied to building a bigger asset base for wealth creation going forward. For example if an individual has a savings capacity of $500 per week this is $2,000 per month. This can be used to build an investment portfolio which could in part be supplemented by a borrowing of $500 to $1,000 per month, a total of $2500-$3000 per month added to an investment portfolio. After 12 months a sum of $36,000 could be in an investment portfolio and after a 3 year period would exceed $100,000. We have a good example in a number of our younger clients who have a very good resource in their income and savings but have very limited assets accumulated. One of these clients now has a $700,000 investment portfolio. In addition over the years she has also, with our guidance, purchased 2 investment properties and a home, this client is now in her mid 30s with a young child and a husband. She is a good example of how the resource of her income and savings has been well utilised to accumulate assets and the additional income of those assets. Everybody has to start somewhere and a start can be made with as little as $100 per month and about $4,000. Little things grow into snowballing assets.