There are some life events and circumstances that can derail efforts to achieve financial independence. Some of them are out of our control like natural disasters and accidents, but our society has developed products such as life and health insurance to mitigate the consequences. “Lifestyle” diseases can also be controlled by making better food and exercise choices.

Apply Some Risk Management Strategies for Financial Security

Aside from these unfortunate events, there are other threats lurking that can throw into chaos our attempts to create financial buffers against unforeseen circumstances. What we can do, however, is to recognise these threats and apply some risk management techniques to create a soft landing if it becomes necessary.

Income Protection Insurance is Only the First Step

For most of us, secure and reasonably paid employment is the starting base. Income protection insurance and actively managing your career through upskilling, as well as promoting or starting your own business are some ways to reduce risks in producing a regular income. Understanding how the economy works and watching for changes like Australia’s recent decline in mining income are other ways.

Assuming that your income is secure for the foreseeable future, you could now be working on creating those financial buffers. We recommend always having some cash savings on hand for emergencies, but accept that with interest rates as low as they currently are, the returns are meagre. The only advantage is instant accessibility, which is why you should only do this for emergencies.

Share Market Volatility Deters Amateurs

Investing in the share market is an option, but only if you have the time and desire to learn and understand how it works and how to maximise investments. For most people, shares are a commodity that is best left to experts in this field to manage.

Property Investment has Many Advantages

The property market is the one area that has continued to perform over a long period of time in Australia. It is also one that most people who own or rent their homes are familiar with. No market is completely safe from economic downturns but we have found property to be one of the best vehicles for achieving financial security.

At Fountain Property Group we have experts available to help you select the right type of property for your circumstances. We will also arrange professional property managers who will select the best tenants and look after the ongoing maintenance.

Good Property Management and Insurance Cover Mitigates Risk

Landlords’ protection and home and contents insurance policies will protect your asset from unforeseen events. With industry-best property managers handling the day-to-day details, you will hardly need to lift a finger on your journey to financial security. Whether you are looking for capital growth, high rental returns or a long-term strategy, we can assist you.

The following two tabs change content below.
Dorian Traill is the current Director of Grand Capital Finance Group and Fountain Property Group. He specialize in home loans for people as well as helping them build wealth through quality investment properties that ultimately lead to long term financial freedom.