In my experience in the financial planning and wealth management industry, having $1million in the bank has been one of the most common client goals I have seen.
Let’s face it – what would open up in your life if there was a cool $1million in the bank right now? If you have a home loan, you would pay it off. If you were renting, you would likely go out and buy yourself a home of your own. What about that holiday you always wanted to take? The family members you want to ensure are well looked after?
There are well over a million ways to make a million dollars and for each of those ways to make it, there are well over a million ways to spend it or lose it.
The dream of having a big fat bank balance is all around us. On television and in movies, there is the protagonist who either has a limitless supply of money or is facing hardship and adversity on their journey to achieving that level of financial freedom. Every week there are numerous Lotto draws with first prize in the millions. They are selling a dream, a fantasy, that in reality is a challenge to achieve.
I have several friends who are highly successful in business and/or their careers who have become millionaires several times over before hitting 40 years of age and I also have friends on the other end of the spectrum who cannot make ends meet week to week.
It doesn’t matter how intelligent you are, your level of education or even how much you earn. I have had a client who quit school at 16, went and got a job in the mines as a labourer and over a period of 30 years amassed a fortune of $1.5 million just from this job.
The most logical place to start is to ensure you spend less than you earn. However, when I look at the qualities of millionaires, they have the following things in common:
- They have a plan –They have a clear plan for the future and are clear on the direction they are heading;
- They are consistent – They take the same actions over and over again like clockwork. They understand a specific action yields a specific result. Even when times get tough, they stick to their routine;
- They know it’s not about the money – There’s this weird paradigm about money… The more you focus on money, the less you seem to have. If you make everything you do about money, you will find yourself missing the real opportunities in life;
- They grow by giving – By getting involved in their community or personal development projects and giving their time freely, they expand as people and build networks of people around them. They learn more about themselves and others through their involvement in such projects;
- They diversify their income – By using cash flow surplus to invest into assets that provide another source of income. They are looking for opportunities to earn the extra income and seek appropriate advice before pursuing the opportunity;
- They seek advice – It is not possible to be an expert in every area. They freely admit they do not know everything and don’t attempt to do things they have no knowledge or interest in. By seeking advice in these areas, they remove the risk of making a costly mistake;
- They have a “Plan B”….and even a “Plan C” – Even the best laid plans can be interrupted by the unexpected. Having a backup plan (or two) means they do not have to go back to square one as they have other options available to them.
The beauty of this is that anyone is able to follow the above steps. These are real habits of real people, who have made it.
Contact me if you would like to discuss your plans on 1300 78 75 79.
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