Here are 10 steps to financial health and wealth
- Spend less than you earn every month
- Avoid bad debt which is credit cards, loans etc with high interest rates
- Invest tax efficiently as much as possible
- Set financial goals if you don’t set them then you cannot be motivated to meet them
- Learn about investing believe me it’s not that complicated and it avoids paying fees to those that know little if anything more than you will with some effort. Complex investments and strategies normally exist only to profit those who introduce them and sell them and are usually far costlier than a tracker fund. You don’t need to reinvent the wheel but financial institutions do so they can take more of your money
- Don’t listen to the noise there is always a new reason to panic in the stock market every year
- If you want the ability to change jobs you must save…A simple path to wealth talks of this as building up f*** you money it’s that ability to be able to walk away from bad jobs with bosses that are obsessed with numbers and not people.
- Understand risk and respect it always be prepared with insurances to cover unforeseen issues that can hamper your wealth building
- Invest in yourself first….having financial knowledge can change your life spending a £1000 getting educated can change your financial life by hundreds of thousands comfortably if you are still relatively young.
- Never show any envy….when you see people in large houses with fancy cars usually what you are looking at is debt. Remember wealth is what you don’t see!
Always Remember no one cares more about your financial future and financial fitness than you!
Building wealth is a mindset it’s a change in your outlook that means you are prepared to forego immediate gratification for something more in the long term. The marshmallow effect is a book which shows how children when placed in a room with a marshmallow will be given more marshmallows if they decide not to eat the one in front of them. It’s no surprise that the most successful people in life are the ones that are able to ignore the marshmallow and think of the benefits of having more marshmallows in the not-too-distant future.
One of the best, most common ways to grow your wealth is to earn money not just from your job but also from what you own. These money machines that earn while you sleep are called investments. An investment is anything that you put money into now and it will return you money in the future. They can be simple investments like property or bonds where you are lending money to some company or goverment, or shares where you own a fractional piece of a profitable business.
When you own investments, they make you money not based on your efforts but on time invested and the growth success of the investment. While you remain invested your money continues to make money. If you leave the money earned within the investment, then the earnings compound so that the money you have accumulated makes even more money. This can greatly accelerate and increase your wealth which is called compound growth Warren Buffett one of the most successful investors in the world called the 8th wonder of the world “compound growth”
Saving for a rainy day can mean plenty of fun in the sun in the future but failure to save means that you are a prisoner to a job and you will suffer in periods of high inflation an environment we are beginning to experience now. Take control of your finances and let your future you reap the benefits. You are today a product of what you started 5 years ago and in 5 years you will be a product of what you start today!
Contact me to learn how to build wealth and discuss your financial future