YOUTH & FINANCE POST EVENT REPORT
Lunchtime Chat Garth Petersen Head of Wealth – Simonis Storm Wealth Management Financial freedom is defined as having enough savings, financial investments, and cash on hand to afford the kind of life we desire for ourselves and our families without financial distress. Financial freedom can mean different things to different people because of their needs and/or their preferences. The goal of financial independence is WWH, which is: What do I want to do? When do I want to do it? How do I want to do it?
Are you willing to get rich slowly? To achieve financial independence, we need the following: Firstly, save for ‘rainy days’, save or invest for an emergency fund in a liquid portfolio that you have access to of 3 to 6 times your monthly salary. This fund will not make you rich but will give you security, should an emergency arise, you will be able to cover the cost without incurring debts. Secondly, stay away from consumer debt which is defined as incurring debts to spend on consumable goods. Debt is good if used to purchase an asset that can earn returns which will support you in your journey to financial freedom, while consumer debt is detrimental to your financial freedom journey. Thirdly, invest like the wealthy. The wealthy appoints a wealth manager who drafts a financial plan according to his goal and holds him accountable by managing the client’s portfolio. Upon establishing that you want to be financially free, it is possible to be financially free. However, you will need a plan on how you are going to achieve your goal. Your financial goal is only achievable if you act, otherwise, it will remain a dream. The question to be answered by the audience is “Are you willing to get rich slowly?”
14
