Define and accelerate your financial success

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:

1. Defining your version of wealth, and,
2. Accelerating wealth creation to make it happen.

Defining wealth
The concept of wealth is personal. For example:

• Tom, a 38-year-old veterinarian, financial success for him means early retirement and a sporty European convertible.
• Craig, a 26-year-old working in retail, is focused on investing in property and wants to live off passive investment 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.com.au 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 work day, 5 days a week? 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.

 

 

 

The information contained in this article is general information only. It is not intended to be a recommendation, offer, advice or invitation to purchase, sell or otherwise deal in securities or other investments. Before making any decision in respect to a financial product, you should seek advice from an appropriately qualified professional. We believe that the information contained in this document is accurate. However, we are not specifically licensed to provide tax or legal advice and any information that may relate to you should be confirmed with your tax or legal adviser.