There are some simple guiding principals that will help you to achieve the great financial goals in life – buying a home, educating your children, travel, escaping the rat race and enjoying a dignified retirement.
Pay yourself first;
There are 2 types of savers.
Type A receives their pay, spends it on both needs and wants, and then IF there is anything left, they might save the remainder.
Type B receives their pay, directs planned amounts towards their goals first, and then happily spends the rest knowing they are on the road to financial freedom.
Use the Power of Compounding Interest to work for you;
Start saving and investing early and let time and the power of compounding interest work for you.
Those that start contributing to super soon after starting work only need add relatively small amounts compared to those who leave it much later to achieve the same end results.
Similarly, those who add small extra amounts off their loans will pay them off much quicker because of the power of compounding interest.
Automate your saving and investing;
Those who choose to contribute a % of their income towards their super, or who have automatic regular deductions towards their savings and investment goals, are much more likely to achieve financial freedom compared to those who don’t.
By automating your regular saving and investing you avoid the trap of procrastinating and decision making that gets in the way of your good intentions.
Buy quality growth assets;
Buying quality shares and property – either directly or via your super or managed investments – has consistently proven to be the path to long term financial freedom.
Quality shares and property provide both income AND capital growth that in the long term will help you to grow enough capital to protect the purchasing power of your money against the ravaging effects of inflation.
Cash is for short term saving, not long-term investing. After tax and inflation Cash results in a negative long-term return.
Simple tools, inevitable success.