Another day another dollar is a cliche that most people use to describe another boring day at their job. I have found another, more exciting, meaning to this phrase. It can be found in the book by Ashley Ormond, "How to give your kids $1 million each".
I have heard about this book before and only got the chance to read it recently. It has some very relevant hints to Australian families trying to build wealth from their children's future, and that is what I really like about this book. It does not build wealth for you, it builds wealth for your children. For me, that is very important.
The book discusses various strategy to build a financially secure platform for you children. Lets take at look three of simple and extremely effective ideas.
- Use the magic of compounding interest. The idea is to put some money away for you child in a frequent manner and let the compound interest work its magic. If you say start with $1 per day until your child reaches 10 years old, you have saved about $4700 (assuming a conservative interest rate of 5%). If that $1 was $5, the saving would be about $23,600!
- Financial Education. This does not mean sending your child to do an stock broking course! It just simply means making sure that your child understands the basic financial facts such as good saving habits, banking by having a bank account in the child's name and repaying loans in the correct time frame.
- Tax minimisation. Tax minimisation needs to start from the word go, so ensure that the correct structure is in place to help with this.
I also like the way Ashley is also donating 10% of the royalty from this book to the "Smith's Family Learning for Life Program".
The book is published by Wrightbooks, ISBN: 0 7314 0538 2