From Budgets to Investments: How to Protect Your Money


Author: Luke Fitzpatrick, Entrepreneur Leadership Network Writer

Do you often envision your future self to be retiring in the lap of luxury? You can get there sooner than you think by saving and investing your money.

Investing can seem like a risky venture, but you can take measures to ensure your future and wealth are best protected. Managing your money now and safeguarding your investments will keep you and your family looked after for years to come.


The best way to start managing your money now is to budget. Assess how much you earn and consider what can be saved. Keep an eye on where your money is going — can you cancel any unused subscriptions? You’ll be surprised by how much you can save by cutting out unnecessary expenditure.

It is important to save your money for future use, such as looking forward to retirement or even just for next year’s summer holiday. Set yourself achievable short and long-term goals to encourage you to stick to your budget.

Where to invest

Now that you have your savings safely set aside, you might want to invest them. Investing your money is a great way to increase your savings and grow your profits. Investment opportunities crop up all the time, but it is crucial to ensure that you are investing your money in the right place.

There are all sorts of things to consider when it comes to investing your cash. An excellent place to start is to think about what you are interested in. Where would you like to see your money go?

Many young Australians are investing their earnings in sustainable businesses. As the effects of climate change become a reality, there is a growing trend to support eco-friendly companies that care about their impact on the planet. What type of investment is important to you?

Another thing to take into consideration is how good your investment return will be. You don’t want to put your money into a business that will not grow or profit. Precious metals like gold and silver are good investment opportunities as they rarely depreciate in value.

How to protect your investment

The work doesn’t end with investing your money, however. We are all aware that investment comes with its own risks. Yet, depending on how risk-averse you are, there are strategies you can adopt to protect your money.

Diversifying your investment portfolio will reduce individual risks by spreading your money over a wider variety of assets. Therefore, the overall trend should be a positive one.

Similarly, it is wise to invest in non-correlating assets such as a variety of stocks, bonds, and real estate as each behaves differently in the market. The positive growth should cancel out the more negative trends.

On the real estate front, Realtor Darren Robertson has some solid advice:

“If you’re hesitant about buying a rental property and becoming a landlord, you don’t want to start with a fixer-upper that needs a lot of work! Many people imagine that the only way to make money as a landlord is to buy very cheap and fix the place up to be rentable, but that isn’t the case at all.

Rather than hedging your bets on a property that will require more time and handyman skills than you may be ready to put into the property, think carefully. Most landlords are more successful if they look for properties in need of minor repairs priced below market value.

These properties won’t require a ton of time or work, so you can quickly give them a facelift and have them on the rental market. The sooner your property can be rented out at a good profit margin, the faster you’ll be making money on your investment!”

That’s one tip, but there are a whole host of risk management strategies to adopt into your investment plan. Depending on your willingness to risk your money and the use of your investment, not all may suit you. It is essential to take the time to protect your money in the best way for you.

How to look after investments in case of divorce

Unfortunately, not all risk comes directly from the market. Many personal intrusions can interrupt your savings plan. If you are affected by a divorce or separation, it is important to know what you can do to protect your investments. Dividing your assets in a divorce includes dividing your investments.

When to seek assistance

You might want to seek assistance from a financial advisor to discuss your investment options. It is also vital to seek legal help to ensure your rights to your assets are protected.

Investing your money securely isn’t the grand challenge you might have thought. Investing in something that interests you, managing the right level of risk, and engaging legal help when you might need to will make your investment much more achievable. With all your money matters taken care of, it won’t be long until you can retire in luxury.

Luke Fitzpatrick has been published in a variety of publications such as Forbes, Tech In Asia and The Next Web. He is also a guest lecturer at the University of Sydney, lecturing in cross-cultural management and the pre-MBA program.

Guest posts do not necessarily represent the views of CountAbout and are not financial advice.

Categorized as How To's