We are often asked if there is a magic potion to guarantee financial success, (I hate to be the bearer of bad news but…) unfortunately there’s not. The fact is that there is no ‘one size fits all’ approach you can take to pursue wealth. However, here are our top tips to ensure you’re at least facing the right direction.
1. Set Goals
If you do not have a goal in place (short, medium and long) what are you working towards and how do you know when you have achieved them? We spend countless hours with our clients helping them commit to a clear goal and time frame.
“If you are in a running race how will you know when to stop if there is no finish line?”
Setting goals is our number one tip as we believe it is THE most important!
2. Spend Less than you Earn
This seems like a simple tip however it is too common for people to spend more than they earn and think this is normal. You may not be able to control how much you earn so therefore it can be easier to curb your spending instead. Cost cutting over a number of areas of your life can definitely lead to achieving those goals you have set for yourself!
This is too often referred to as a taboo subject! However this is a core component to the wealth ‘puzzle’. If you do not know where you are spending money you are basically playing pin the tail on the donkey and your key strategy to achieve your dreams will be hope… which is definitely not one that we suggest. Whether you earn 5 or 6 figures everyone needs a budget.
4. Pay off your credit cards
If you are one of the many Australians living with credit card debt that is not paid off in full each month then this should be an absolute priority for you. Interest rates on credit cards can be scary!! One suggestion would be to look for an interest free credit card, chop up your existing card and calculate how much you need to repay to have it paid off before your interest free period is up.
5. Save, Save, Save!
You should have a plan in place as to what money you want to enjoy today vs what money you want to enjoy tomorrow. This means that out of every pay packet you receive you should be allocating around 10% of this to your ‘tomorrow’ fund. Those goals that you worked out earlier will come in handy here to keep your eyes on the prize!
“All our dreams can come true, if we have the courage to pursue them.” – Walt Disney
With the cash rate at an all-time low the money you have sitting in a bank account will be earning you minimal interest. If the time frames for your goals are a few years away it is a great way to aid your future dreams. This point will take some research and possibly some professional help which brings me to my next point…
7. Get professional advice
If you are serious about achieving your dreams there is a financial adviser out there that will understand you and keep you accountable to kick some goals!
So what are you waiting for… Start the journey to achieve your dreams!