Advertisement
Australia markets closed
  • ALL ORDS

    7,999.20
    -83.90 (-1.04%)
     
  • ASX 200

    7,727.60
    -84.20 (-1.08%)
     
  • AUD/USD

    0.6631
    +0.0022 (+0.33%)
     
  • OIL

    77.80
    +0.93 (+1.21%)
     
  • GOLD

    2,335.20
    -2.00 (-0.09%)
     
  • Bitcoin AUD

    103,752.37
    +1,876.00 (+1.84%)
     
  • CMC Crypto 200

    1,441.96
    -26.14 (-1.78%)
     
  • AUD/EUR

    0.6109
    +0.0005 (+0.08%)
     
  • AUD/NZD

    1.0823
    -0.0005 (-0.04%)
     
  • NZX 50

    11,783.39
    -26.09 (-0.22%)
     
  • NASDAQ

    18,808.35
    +184.96 (+0.99%)
     
  • FTSE

    8,317.59
    -21.64 (-0.26%)
     
  • Dow Jones

    39,069.59
    +4.33 (+0.01%)
     
  • DAX

    18,693.37
    +2.05 (+0.01%)
     
  • Hang Seng

    18,608.94
    -259.77 (-1.38%)
     
  • NIKKEI 225

    38,646.11
    -457.11 (-1.17%)
     

How to get rich in 600 words

How to get rich, according to financial commentator Peter Switzer. (Source: Getty)
How to get rich, according to financial commentator Peter Switzer. (Source: Getty)

I’m currently doing a round of interviews for my new book so I’m trying to capture in a nutshell what the biggest lessons are for anyone who, if given a choice, would prefer to be rich rather than poor.

Over the weekend I started to reread my book to pull out the main points but I was stymied by the fact that there are too many great pieces of advice that I’ve inherited over 30 years hanging out with some of the greatest business and wealth-builders known to man.

ADVERTISEMENT

What follows is my best shot at helping you get rich in about 600 words. Here goes:

  • If you aren’t happy with your money situation now or into the future, you have to sign up for changing your greatest money-killer — YOU!

  • Tennis great Chris Evert should inspire you with what she once said: “There were times when deep down I wanted to win so badly I could actually will it to happen.” You have to want to be a money winner rather than a money loser.

  • Work out what you want in life. Price those goals. For example, I want to pay off my house and have a million dollars in super by age 60. Create a plan to make it happen. If you know you can’t do it yourself, then start reading a book like Join the Rich Club or go to an good and trustworthy financial adviser.

  • You need to know numbers, such as: how much do I have to save and invest each month? What kind of return do I have to get to make my dreams come true?

  • For example, if I save $40 a week from age 21 in a good super fund until age 60, I will be a millionaire plus!

  • Visualise yourself richer and give yourself a daily reminder. Layne Beachley, our world champ surfer, wrote down her goal to be the best in the world on her mirror so she saw it every day!

  • I know it’s boring but you have to do a budget and then GST your life — hit your spending by 10% by shopping and buying smarter — to give you the money/savings to invest.

  • Next you have to make sure you have tested all your financial products — do you have the lowest cost home loan and credit card? Are you in the best super fund — returns and cost-wise? Have you found the best value-for-money insurance policy, health cover, etc.? If not, why not? Is it because you don’t really want to be a money winner?

  • Do you need to have a second job or start a side-hustle to get the money to do the investing? A friend of mine turned her garage into an Airbnb cottage and she gets $400 a weekend, which she uses to buy dividend-buying stocks when the stock market sells off! She’s got a “get rich” plan.

  • Armed with the savings, you have to develop a money-making plan. A simple one might be to wait for the stock market to crash. It might take two or three years but you would have saved up a lot of money. When everyone is scared, buy an exchange traded fund like Vanguard’s VAS, which buys the top 300 stocks on the Aussie stock market and charges only 0.1%. Here’s its track record:

  • If someone saved $10,000 a year from age 30 to age 60 and secured an 8% return after tax, say in a great super fund, that would end up being $1.13 million.

  • Stop being a footie fanatic or a Kardashian fan and become focused on money — understand it, collect it and invest it wisely.

It’s not Mission Impossible but mission very possible but you have to keep saying to yourself: “If it’s to be, it’s up to me!”

As Chrissie said: “There were times when deep down I wanted to win so badly I could actually will it to happen.” And she added something else: “I think most of my career was based on desire.”

How badly do you want it? (By the way, I went about 70 words over but you’re worth it.)

Yahoo Finance’s All Markets Summit is on the 26th of September 2019 at the Shangri-La, Sydney. Check out the full line-up of speakers and agenda for this groundbreaking event here.