Yahoo Finance Expert's 5 big actions to getting richer
In his great book Life in Half a Second, Matt Michalewicz, looked at five steps for success.
The critical last step is that you have to take ACTION!
All the best planning in the world, access to great guidance and preparing yourself for outstanding success will mean nothing if you don’t take action.
The same goes for building wealth and being a success at getting richer. And I think there are essential actions you have to take.
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Like Matt, who is a serial entrepreneur and who will list his highly innovative Artificial Intelligence company — Complexica — next year, I think there are a series of important steps to change someone from being a normal person (unlikely to build serious wealth) into someone who has the inside information on being money successful.
I’m not saying you’ll end up being Gina Rinehart or Elon Musk, but you could be someone who’s not going into retirement one day totally dependent on an average or below average super fund.
On the other hand, if you do wind up being super dependent, you might have $3 million in your fund, when the average person has a million!
WATCH: Kim Kiyosaki's top tips to develop wealth.
I know a million sounds great but inflation will bring down the real value of your super nest egg, which is why you need to build it up better than most.
And while you’re at it, let’s try and build up a pile of other assets that will stream income to you on a regular basis, on top of your inevitable super pension that you’ll have whenever you need to access it.
So what’s the first action? This is a biggie and demands that you actually move heaven and hell, or at least yourself, to create a plan to get rich.
How do you that?
If you know you’ll never do it on your own, go looking for a transparent and smart financial adviser. That should be one action that gets you on the road to getting wealthier, but you have to find a good one.
But if you want to do it on your own, step one is to create the plan.
And here’s a simple guide to doing that:
1. Set a money goal/goals, such as $3 million in super by retirement age or maybe own a house and investment property ASAP.
2. Work out how you’ll make it happen — actually use search engines like this one, books, magazines etc.
For example, if you’re 25 with $40,000 in super, using the ASIC super calculator, you might find that using salary sacrifice each year, putting $25,000 into your super fund, including your employer’s contribution of say $8,000, could mean you end up with $1.6 million in your super.
That means if you want more, you’ll have to put extra amounts in.
These are called non-concessional contributions to get to the $3 million mark into your super fund.
The super calculator says you’d need to put in about $3,700 a month and you’d get there!
It’s a lot and you might have to get a great job or start a fantastic business. Or you might get married and one partner puts all their wage into super!
The point is that if you do the work (like I did to write this story!), you can find what needs to happen to make your money goals come true.
3. Once you’ve worked how much you need to make wealth happen, then you have to find the money to save and invest. So do a budget to see where you can save money and what extra work you have to do to get the income to make your wealth dream come true. As I’ve suggested, it might be an extra job, study to get a promotion or you might need to start a business.
4. Commit to the plan by making sure you really want it to happen. Matt says how badly you want something is a critical ingredient for success because it makes the final and crucial step happen.
And what’s that?
5. Taking action! You have to embrace change and the plan to make it all happen.
When you do this, it will create a snowball of success that increases the chances of you actually winding up rich!
Good luck! But if you think you’ll never do this without a financial adviser or even a money coach, then don’t let your cheapskate ways make you live a cheap life for the rest of your life, unless you like that kind of thing!
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