• Call us today: 1300 761 988
    Email: info@awesomelendingsolutions.com.au

  • 9 Wealth Creation Tips I have learnt from my clients in the last 10 years

  • 9 Wealth Creation Tips I have learnt from my clients in the last 10 years

    Recently it was pointed out to me that two things in life change you. The books we read and the people we meet.

    As many of you will know, I am an avid reader and have recommended many excellent books on wealth creation. When reflecting on this statement I started to think about the people I have met over the last ten years, and some interesting things came to mind.

    It’s never too late to start.

    I was recalling the number of fantastic people I had the pleasure of meeting that are in their late fifties and even their sixties who come to see us about creating wealth and developing a property acquisition plan.

    Now these are often people who have a comfortable level of savings and income and could move into retirement comfortably.

    Many get excited about the idea of increasing their wealth and it’s amazing what that mindset can achieve. Proving that new goals can be reached no matter what the age.

    Too much bad debt equals tomorrow’s slavery

    I have met many lovely people who have increased their debt level as their income grew and now realise that they want help in achieving a more secure future.

    The feeling of being swallowed by debt will happen to all except for those people lucky enough to win the lottery or receive a huge inheritance for the majority of us life happens in increments.  It is easy not to realise that your expenses are creeping up and keeping pace with your income.

    It is easy to seek immediate gratification and forget to delay the purchase of something that we want.

    Unfortunately, this leads many to fall into the trap of increasing bad debt. The fact is that bad debt robs people of their opportunity to use tomorrow’s earnings to invest.

    Limiting your bad debt obligations will mean you have more control over your personal finances and give you the freedom to start investing.

    It’s easy to get caught up in the ‘Big Boys Toys’ game

    Everyone has the ‘toys’ in their life that help them feel fulfilled.

    The feeling that the more ‘toys’ I have, the more successful I am is among all of us, but they can be an enemy to money management.

    It’s easy to look at how ‘the other half live’ in glossy magazines and on television and think this is something to aspire too. Many of us think life is all about working so that you can be one of the ‘have mores’ of the world is a good indication of just how alluring it can be.

    The truth is possessions don’t make for ‘a rich life’, it’s the experiences and people – the things that money can’t buy – that make you truly wealthy.

    Everyone is responsible for their own destiny

    I have seen many people try to help set their children up for the future. The fact is; people who seem to be more successful in building wealth are those who accept responsibility for their own destiny.  These are the people who own their decisions; there are no rich victims.

    On the flip side, I have tried to help many people who always seemed to have someone or something to blame. People who feel they’ve been unjustly dealt a ‘bad hand’ and these people rarely seem to be able to create wealth.

    For those courageous enough to cast a critical eye over their life, recognising where they are is a direct result of their own choices. This allows them to take ownership of their decisions to build confidence, self-esteem and self-respect.

    People who have done this seem to have an inner strength in knowing they have become the master of their own destiny, rather than handing their power and control over to someone else.

    Patience and Preparation bring success

    The people I have met who have the ability to be patient also have the capacity to understand the difference between wants and needs.

    They are able to recognise that all the money you spend on those material items you just ‘had to have’ today, is less that you’ll have to fund your retirement with tomorrow.

    I have learnt from these people that if you work hard and invest even harder, your purchasing power will increase over time!

    Luck is made through hard work.

    Some people over the course of my life like to attribute the success of others all to ‘good fortune’. Perhaps they were in ‘the right place at the right time’, or knew ‘the right person’.

    While a handful of people have lucked out by winning the lottery, truly successful people do the hard yards to reach the pinnacle of their chosen field or endeavour.

    If you can find something that you’re passionate about, and make a living doing it. You will be far more likely to achieve great things because you’ll work harder to reach your goals and every day won’t be a struggle.

    You don’t need millions to achieve financial freedom.

    I have met a couple of people who claim to be millionaires but who in reality are up to their eyeballs in debt with their property portfolios not protected.

    Many of society’s wealthy power players are asset rich, but cash flow poor.

    Some are obligated to their creditors indefinitely.

    Whereas other people I have met who earn $50,000 a year, are without debt and have a decent amount of assets and are financially free.

    One of the skills that a lot of my clients have mastered is that financial freedom is not dependent on money itself.

    It is more about your relationship to it and the level of personal responsibility and fiscal discipline you’re prepared to exercise throughout life.

    Spend less than you earn… and invest the rest

    I remember this couple I was totally impressed by their ability to move financially forward and never could understand how they did it till I got to know them.

    They followed one golden rule above all else, and they quickly established themselves to a path of financial freedom.

    If you seek to invest at least 10 percent of your earnings, the rest will take care if itself.

    Your opportunities won’t last forever so use them wisely

    A good example of someone that I met that created and grab opportunities wisely was a child of one my clients.

    They were determined to purchase their first property by the age of 21 and was working three jobs to save the deposit. Nine years later five properties.

    Sometimes opportunities come when you are not ready but you need to grab them as they help create openings to shape your future.

    Start saving and investing early in life and you’re likely to secure your financial future.

    WHAT I UNDERSTAND BECAUSE OF MY CLIENTS

    Financially secure people do certain things every single day that sets them apart from everyone else in life.

    These people have good daily success habits that they learned throughout their lives.

    These daily habits are the real reason for the differences in people’s path to financial freedom.

    Unless we learn daily success habits, we will never find a future full of opportunities and wealth security.

    So it might pay (literally) to give them a bit of your time.