Make your money matter

Make your money matter

I recently sat down with a client who asked me, "What are the top 3 things you've learnt about money over the last 13+ years?"

It was a good question, and one I thought you might be interested to know the answers to...

Probably the most important lesson I've learnt is:

Speed and greed kill - get rich slow or get poor fast

Whenever a client has tried to 'get ahead' faster and an element of greed has crept into their mindset or they've tried to take a short cut to make 'more $', they have always ended up taking a financial king hit! 

There is no rush when it comes to building wealth, it's all about simply moving forward and making financial progress year on year, step by step. We as humans just need to feel as though we're making progress in some way shape or form to feel satisfied. When we try to rush that financial progress it always delivers a negative outcome. It's literally slapping you and trying to tell you to slow down. Learn the lesson or risk it happening again.  Compound interest over time will become your best friend without the need for speed!

Automate your savings and investing

These days we are all so busy, life always seems to gets in the way of your saving/investing. So you have to automate the process of saving or investing so it happens for you automatically in the background without you having to think/touch or remember anything!

I've learnt that the amount of money you have to live off when you retire is directly related to the frequency that you invest, NOT the return or the amount you invest.

There are some fantastic Apps around  which automatically invest for you every time you spend on your bank card. It rounds up your purchase to the nearest dollar and invests the difference into a separate investment account in your name. This is then invested into a diversified portfolio. It compounds over time and creates a healthy little nest egg. So every time you're spending, you're actually investing!

There is only one way to increase your Net Worth

Reduce your expenses/debt and increase your income/assets. What I've learnt is that the more money you make, then the more that you spend. It's as simple as that. If you focus this year on nothing but reducing your debt and your expenses, you will be a lot fitter financially. But if you combine that with increasing your income (get some extra work or sell some stuff) or increasing your assets (savings) then you have found the keys to rapidly increasing your Net Worth.

Track and measure your Net Worth

The most important money tip I have for you is: whatever gets measured, gets improved.  I bet you know your body weight, but if I asked you what your financial weight (Net Worth) is, most of you wouldn't be able to tell me... weird isnt it!

Your Net Worth (the amount of money that you would be left with if you sold everything) is the most important number in your life, it will determine where you live, how you live and the choices you have when you live. Yet nobody measures it!  Measure your Net Worth every month as a minimum so you know how you are tracking.

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