Planned Investment: Best Made Within Your Means
Greed is not good — not even in building wealth
Understanding that greed goes beyond overindulgence is key to protecting your financial future. Greed, in a financial sense, often leads investors to take unnecessary risks. A disciplined investment strategy, built on your available resources, is the smarter choice.
Investing within your means allows you to meet clearly defined needs, goals, and objectives. By planning, you reduce the risk of poor decisions driven by unrealistic expectations.
Greed in investing shows up as the relentless pursuit of the “next big thing.” These choices are often made without assessing the true financial cost. Risk is ignored, and returns are assumed. But the price of ignoring risk can be high.
Greed is not good
Spending beyond your means—on investments or lifestyle—can have life-altering consequences. Long-term overspending almost always leads to hardship.
Planned investment, within your means, brings peace of mind
Understand how your wealth is financed. Many strategies use borrowed funds and create tax deductions. But if the investment performs poorly, the costs persist. You must manage that risk. Gearing should stay within a comfortable debt ceiling.
Diversification is essential. A well-structured portfolio will provide both income and capital growth. It also helps your investments respond predictably to economic changes.
If you borrow to invest, be sure the asset has strong growth potential. Ideally, it should grow faster than the cost of the borrowed funds. The investment should also generate enough income to cover the loan repayments. Avoid relying on savings to service debt. This becomes critical if the asset stops producing income.
Sustainable investment strategies need protection
Income Protection and personal insurances can safeguard you during illness, injury, or trauma. These insurances are especially important when debt is involved. Review them regularly—especially if your health changes.
Budgeting helps define how much debt you can realistically manage. Yet many overlook this crucial step. A sound financial plan brings clarity. It guides you toward major goals like:
- buying a home
- raising a family
- planning holidays
- growing investment and lifestyle assets
- estate planning
- achieving financial independence in retirement
Continuum Financial Planners Pty Ltd can help
Our advisers work with you to develop tools and strategies. We also help you stay on track—so your plan remains effective over the long term.
To arrange a meeting with one of our experienced financial advisers –
- phone our office, on 07-3421 3456, or
- at your convenience, use the linked Book A Meeting facility.
(This article was originally posted by us in July 2010 – under the title ‘Greed Isn’t Good…’. It has occasionally been refreshed/ updated, most recently, in May 2025.)
