The objective here is to increase your spendable income, minimise the impact of taxes and increase your net worth. What wealth creation boils down to is this: there are only three ways to increase your wealth:
- Increase your income
- Decrease your expenses - particularly your monthly interest costs
- Be more efficient in the use of your savings and other assets - by careful financial planning.
If you are like most people, the amount of wealth available to you and your family is generally limited to the amount of income you earn, plus the value of your assets.
We act for many businesses as Sussex based Accountants and we manage a whole array of financial situations. If your financial affairs aren't structured properly, you'll pay too much in tax, you'll miss opportunities to increase your income and, worse of all, when you die the taxman will take a large slice of your savings and assets and say "thank you very much for working so hard and being badly organised".
You probably already know that one of the largest monthly cost that most people pay is on their mortgage and credit cards? With direct on-line access to the financial markets, we can show you how to reduce your monthly outgoings.
The most unpredictable and perhaps uncontrollable drain on wealth is taxation. Tax rates are currently running at a maximum of 40% in the UK, but in living memory they have been as high at 98%. Who's to say what the future will bring if the economy nosedives again? With careful tax planning, you'll be able to keep your taxes as low as they can get and you can be sure that, when you die, your family will benefit in full rather than the taxman.
Remember that it's only after your living expenses have been paid, as well as your interest commitments and tax, that anything is left over to build wealth.
We've found that in nearly every case, unnecessary money is paid out for consumption, interest and taxes. The amount by which these unnecessary expenditures can be reduced, and thus how much money that will be left over to invest in your wealth, depends entirely on the strategies taken - wealth creation planning starts by us finding out your current situation, discussing your plans for the future and determining your personal values.