In relation to building and achieving financial success, there is a question that many financial advisers often receive: Are there keys to financial abundance?
Money Matters
Parents also worry about how their children are going to get ahead financially in the current economic conditions.
The reality is that there are no magic answers or tips that can generate overnight financial success. However, over several years of seeing the experiences of investors, business owners and people just trying to find a way in this world, there are some common themes.
One consistent message is that if you want to achieve your financial aspirations, focus is an essential success factor.
One infamous quote from investor Warren Buffett is "Keep all your eggs in one basket, but watch that basket closely".
While seemingly contrary, the context of this is focus. With so much "how-to" financial content available these days, your personal point of difference can be about the execution of ideas and plans. So start planning and then keep planning, no matter where you decide to keep your eggs.
The following are three simple but valuable tips that have proven to be useful over the years.
Three Tips to Create Focus
TIP ONE
Save 10% of Your Income.
This Tip is highlighted in George S Clason's "The Richest Man In Babylon" - You will be amazed at the impact this invaluable strategy could have over a sustained period, especially as your income increases. The wealth parable is a short and very easy read - and a great way to get you started with your plan.
TIP TWO
Acquire Assets that Generate Income.
Robert Kiyosaki's "Rich Dad, Poor Dad", co-written by Sharon L. Lechter, highlights different categories of "assets". Those that generate income (shares, businesses, cash, property) and those that do not (cars, personal effects, etc.).
Understanding the concepts in this book can help build your plan and your asset acquisition choices.
TIP THREE
Pay Yourself First.
David Bach's "The Automatic Millionaire" suggests not worrying about taxes, investing or even budgets.
Focus on paying yourself first, by putting funds aside to be accessed later. Then limit your spending to what is left over. Bach emphasises the strategy of using automated payroll deductions to avoid the temptation of drawing on savings. This classic includes many simple but great concepts.
Contact MCP
1300 510 816 or your Finance Partner
enquiry@mcpfinancial.com.au