Viewing entries tagged
pension

Find Your Winner Circle & Build Your Wealth

Find Your Winner Circle & Build Your Wealth

Before I start this blog, I want to make sure you know what an Investorgetic® is. An Investorgetic® is a persona I created while writing Money Intelligence to counter the Consumerholic persona in our society. It's a term I coined that's made up of 2 words: investor and energetic. It means someone who is passionate about investing to build their wealth in a sustainable way. 

How your friends impact your wealth

Create your Financial Blueprint for a happy retirement

Create your Financial Blueprint for a happy retirement

When it comes to your retirement, it’s no use crossing your fingers and hoping for the best. You need to know exactly how much money you will need, and the steps you need to take, to achieve the retirement lifestyle you want. 

Don't let YOLO undermine your money goals

Don't let YOLO undermine your money goals

Part 1 of Investorgetic® Series - The secret to becoming a Millionaire

Are you someone who takes a "YOLO - you only live once” approach to money? It’s true that we should seize life with both hands and enjoy it as much as we can. But this is not an excuse to spend, spend, spend. If anything, it is more reason to take a long-term, responsible approach to your wealth.  

People are living for longer. If your idea of living life to the fullest is spending all your money on life’s luxuries, what happens if you live to 90 or older? Could you guarantee yourself a decent living for 30 years or more after retirement?

Consumerism has blinded us to the true sources of love, happiness and success. Advertising tells us we can find these things in products and services. We borrow to spend, and we spend to enjoy our lives. Most of us don’t even question this; it’s just what we do.  

Are you a Consumerholic? 

You may be thinking, “This isn’t me. I’m in control of my wealth and how I spend my money.”  

Maybe, maybe not. Look at the following list. You know you’re a Consumerholic when you:

  1. Feel the need to buy more clothes, bags, shoes and perfumes, despite having a cupboard full of these things (some of which you probably never wear).

  2. Live week to week and save none of your income.

  3. Spend more than you earn, accumulating personal credit card debt

  4. Pay for holidays and other luxuries with your credit card or home loan redraw, rather than saving for them.

  5. Believe a car is an investment.

  6. Ignore opportunities to invest (apart from paying off the mortgage).

  7. Are scared to borrow money to invest, yet have no issue with borrowing to consume, eg. for new furniture, overseas holidays.

So how do you score? Do any of these points ring true for you? If so, your spending habits need an overhaul. To build your wealth and retire in comfort, you need to change your spending habits and your mindset. You need to invest your money wisely. You need to become an Investorgetic®.

Find your inner investor

An Investorgetic® mindset is not about denying yourself enjoyment. It’s not about putting your life on hold and giving up all of life’s luxuries. Rather, it’s about living within your means – at every stage of your life.

So, how exactly is an Investorgetic® different to a Consumerholic? Typically, an Investorgetic®:

  1. Plans proactively for the long term.

  2. Ensures their daily actions are tied in with their long-term goals.

  3. Is careful with money. They plan, budget, save and live within their means.

  4. Focuses on income-producing asset investment.

  5. Saves money for emergencies and holidays.

  6. Puts money into an education fund for their children.

An Investorgetic® makes wise money choices that help them reach their financial goals. They get excited about investing – yes, such people exist!

They have a different approach to living life: they don’t rely on credit cards and they know the difference between necessary and unnecessary expenses. Every decision they make is pointed at building their long-term wealth.

But to know where to invest your money and what you want to get from your investments, you need to have a clear vision of what you want your financial future to be. Without a well-defined vision, nothing will change.

Stay tuned next week for Part 2 of the Investorgetic® Series on how you can articulate your Magna Vision.

 

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Susan Wahhab —CPA, SMSF Specialist, Entrepreneur, Working Mum, Small Business Supporter— is Australia’s leading Financial Strategist and Money Mentor. Susan is the founder and managing director of Accounting and Financial Services firm Winner Partnership Pty Ltd www.winnerpartnership.com  

Susan is the author of the transformational and practical book Money Intelligence®. Susan is passionate about helping people achieve financial liberation. At the age of six, she witnessed how her money-savvy mum (whom she calls the money manager) joined forces with her dad (whom she refers to as the money maker) to save the family business from bankruptcy and become financially free. Susan truly believes that people can become financially liberated by developing a healthy relationship with money. Buy the book in either printed copy or ebook and learn more about being money intelligent www.moneyintelligence.com.au

 

 

2036 AD: A future without the pension?

2036 AD: A future without the pension?

Christmas is a time to celebrate with friends and family. But as we rejoice and reflect on how lucky we are, the festive season can be an emotional and difficult time for those who struggle financially. 

Each week, 700 Australians celebrate their 65th birthday. This number will continue to increase as more baby boomers reach the golden age of retirement. About 84% of people aged 65+ end up receiving a part or full pension. For these people, everyday living becomes a struggle.

Our federal government has been increasing its borrowing every year for the past decade: from $59 billion in 2006 to $405 billion (and rising) in 2016. (For more information on this, visit: https://en.wikipedia.org/wiki/Australian_government_debt)

Previous governments have missed countless opportunities to change the precarious course we are now on. After conducting extensive research while writing Money Intelligence®, I am convinced that our children will be the ones to pay the ultimate price of this nation’s Consumerholic culture.

There is a limit to borrowing. My belief is that people – as well as the government – should only borrow to invest, not consume. This is a line that’s been blurred the past 30 years – a result of misguided YOLO (You Only Live Once) values!

Our government envisages 25% of retirees will be self-funded in the next 20 years (an increase from the current figure of 14% to 25%). But this isn’t enough. I have a vision that by the year 2036, 50% of retirees will become self-funded.

I have faith that my generation – Generation X – will wake up from the trance of our Consumerholic culture. They will find the courage to face the reality that there will be no pension in 20 years.

So how can you prepare for a future without the pension?

It starts with a promise. Make the promise to yourself that you will become part of the 50% who are self-funded in retirement. No pension, no struggle, no reverse mortgage.

I am not trying to sell you anything. You don’t have to come and see me. I ask you to simply start taking control of your financial future now. Start small by saving in your home loan offset account, even if it’s $50 a week. Salary sacrifice, even if it’s a mere $20 a week.    

You need to build your saving muscle slowly, and with time you will become addicted to it. Yes, that’s right – saving will become your addiction! I have heard it from so many clients – people who started by saving small amounts and gradually built these amounts over time. Now, they’re hooked!

So, before the year ends I ask you:

1. What will you do differently this Christmas to make sure you don’t pile on more credit card debt?

2. What’s your 2017 money plan? What’s your big vision for the next five years? 10 years?

3. What small changes can you make to begin your journey to a self-funded retirement?

Why wait for the new year to get started on your money plan? Act now by downloading your FREE e-book, 8 Ways to Outsmart the Banks – 32 pages of simple and effective money management tips. If you like my money intelligence philosophy, you're welcome to buy the book Money Intelligence® (MQ) and learn how to increase your MQ and take control of your money. Think of it as a Christmas gift to yourself! Get your copy here.

 

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Susan Wahhab —CPA, SMSF Specialist, Entrepreneur, Working Mum, Small Business Supporter—is Australia’s leading Financial Strategist and Money Mentor. Susan is the founder and managing director of Accounting and Financial Services firm Winner Partnership Pty Ltd www.winnerpartnership.com  

Susan is the author of the transformational and practical book Money Intelligence®. Susan is passionate about helping people achieve financial liberation. At the age of six, she witnessed how her money-savvy mum (whom she calls the money manager) joined forces with her dad (whom she refers to as the money maker) to save the family business from bankruptcy and become financially free. Susan truly believes that people can become financially liberated by developing a healthy relationship with money. Learn more about being money intelligent www.moneyintelligence.com.au