What does financial success mean to you?
Is it tied to achieving lifestyle goals like caravaning around Australia or pursuing a hobby?
Perhaps you have a more traditional view of wealth; a paid-off home, a prestige car, money in the bank.
Achieving financial success requires two things:
- defining your version of wealth, and,
- accelerating wealth creation to make it happen.
Defining Wealth
The concept of wealth is personal. For example:
Tom, a 38 year old veterinarian told us that financial success for him means early retirement and a sporty European convertible.
Craig is 26 and works in retail. He wants to invest in property and live off the passive income, travelling the world and accumulating experiences.
Judy, at 59, is looking forward to a debt-free retirement. Her definition of wealth is not relying on the age pension, learning watercolour painting and golf trips with the girls.
Now it’s your turn. Ask yourself: What does financial success look like to me?
There’s no right or wrong response, so imagine what your version of the future could look like and write it down.
Accelerating Wealth Creation
Once you’ve clearly identified your model of financial success, accelerate your wealth creation to make it happen.
Let’s look at ways to do this.
Upskill Yourself
Learning new skills can boost your earning potential and possibly qualify you for a raise or even a promotion. You might take on some freelance work or set up a side hustle. Websites like Seek have a career advice page dedicated to helping you understand your earning capability and the job skills required by various roles.
Create a Budget
Simple but effective, a realistic budget that you can stick to, will help you identify areas of unnecessary spending – do you really need that streaming service? What if you were to forego one $6 coffee per day? You’d save around $120 per month. That’s $1,400 per year! Just. One. Coffee! If you can do that, what else can you do?
Cutting back on non-essentials can free-up money to be redirected into savings and investments and help you achieve your wealth goals.
Investing
It doesn’t matter how little you can afford to put away, even small amounts add up; the key is to get started. Some savings plans can be opened with as little as $20 and pay bonus interest if you deposit regularly and don’t withdraw.
However, figuring out the right savings strategy for your needs can be daunting, which leads nicely onto our next point:
Utilise Professionals
Whether it’s budgeting or identifying the investments most suitable for achieving your goals, working with a professional financial adviser will give you that peace of mind you’re looking for. Even if over time your goals vary, your adviser is with you every step of your wealth journey, ensuring it leads to your definition of financial success.
Don’t Procrastinate
It’s never too late to start saving. Don’t wait until next month or after Christmas…A year from now, you’ll wish you’d started today!
Consistency is the key, of course. Sticking to a budget, saving and investing are lifestyle habits you can adopt now, that will take you where you want to go.
So whatever your version of wealth may look like, get busy making it happen.
And remember: goals you don’t achieve are the ones you don’t strive for.
