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personal finance

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

DIY or Money Mentor?

DIY or Money Mentor?

If you’re a DIY kind of person, let me ask you this: Do you have the time to research all your investment and insurance options? Would you be able to look at your financial situation objectively? Could you crunch the numbers? Navigate tax laws? AND work your day job? 

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. 

Protect your Wealth, Health & your Children

Protect your Wealth, Health & your Children

How to Become an Investorgetic®. The secret to becoming a Millionaire Series - Part 7

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. 

Expect the unexpected: Protect your assets

Nothing in life is certain, and this is especially true for your finances. No matter how much you save or plan, sometimes things go awry. But there are steps you can take now to minimise the financial damage as much as possible.

Your wealth, health and family are intertwined. When things go haywire in one area, the others are impacted as well. If you neglect to safeguard all three areas, your future prosperity is compromised. 

Protect your wealth

When you’re focused on building your savings, protecting your wealth is often an afterthought. But if something unexpected happens, all your hard work and assets can go down the drain. It’s important you set up wealth protection mechanisms now to save yourself financial headaches in the future.

·      Get income protection: Your income is your most valuable asset. Most people insure their homes, yet fail to insure the highest income earner in the house. If you borrow to buy a home and invest, you cannot ignore income protection. It is usually covered under your name and the premium is tax deductible. Insurance companies often cover you for 75% of your gross income.

·      Life insurance and total permanent disability (TPD) insurance: Life insurance protects your family if something happens to you as an income earner. TPD insurance covers you if you have an accident and can no longer work. These insurances are usually covered by your superannuation fund. 

·      Get trauma insurance: If detected early, you could survive a serious illness such as a heart attack or cancer. However, would you be able to survive financially after paying the medical bills and taking unpaid leave from work? Trauma insurance usually covers medical bills and the 25% shortfall not covered by income protection insurance. Trauma premium is not tax deductible, but the payout is free if claimed.

·      Keep your debt level under control. An Investorgetic® doesn’t borrow more than he or she can repay. Most people borrow the maximum the bank is willing to give them. However, the bank’s method of calculating what you can afford is based on a formula that changes depending on whether the economy is running under a tight or easy monetary policy. You need to work out how much debt you can comfortably tolerate, rather than jump at the maximum the bank offers you. 

Protect your health

What is wealth without health? And how much will poor health cost you in the long run? No matter how much money you earn, you must be happy and healthy.

How many times have you worked overtime, skipped meals and exercise, opted for unhealthy foods, or missed important family events in the pursuit of ­earning more money? It’s easy to lose sight of what is truly important to us when we want to achieve our financial goals.   

Your financial success depends on your mental health and physical wellbeing. If you continually ignore your health, you risk physical or mental meltdown.

Make your health a priority. Exercise every day. Eat well, drink plenty of water and make time for family and friends. You’ll have more energy, be happier and save on medical bills in the long run.

Protect your children

I have heard horror stories of children not receiving their inheritance because their parents’ will was ambiguous, changed by other family members or not made at all. It’s vital that you make a will to protect your children and their interests.

When your circumstances change, your will is often the last thing on your mind. But it should be one of the first. If you remarry, ensure your children from your first marriage are looked after in your will, should anything unfortunate happen to you.

There are a number of legal and tax structures that allow you to pass down your family’s wealth. These include:

·      Family trust

·      Self-managed super fund

·      Investment companies

Seek legal and accounting advice when setting up these structures, and make sure they are aligned with your will.

Next week in the Investorgetic® series, I will show you how you can create your blueprint for financial liberation.

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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

 

 

 

 

 

Your Future Depends on the Now

Your Future Depends on the Now

Part 3 - How to Become an Investorgetic®. The secret to becoming a Millionaire Series

Focus on Financial Liberation: Introduction and Step 1 

Your retirement may seem like a distant dream; something to worry about later on. Yet what you do now – how much you earn, spend, save and invest – determines how much money you will have in retirement.

How much money you will need depends on the kind of lifestyle you want. Do you want a frugal retirement, living week to week on the pension? Or do you envision yourself debt free, living in comfort off your own savings and investments? 

It is never too early to transform into an Investorgetic™. You can start working towards a financially liberated retirement no matter what stage of your life you are in. But the fluctuating global economy complicates matters. What is financially relevant now might not be in 20 years’ time.

For example, the erosion of investor returns has caused major economic upheaval. The rate of return for cash investments nosedived from 7.5% in 1995 to 2.5% in 2015. This has had a huge impact on people’s quality of life in retirement.  

So, when the world is faced with an uncertain financial future, how can you plan for your retirement in 20 or 30 years? And how can you plan for another 20 years after that?

Create your wealth road map 

No one can guarantee what their future will be. But you can understand and manage the risks by creating your wealth road map. A wealth road map considers various financial

scenarios – good and bad – and uses the numbers to create a sound financial strategy bolstered by wise investments.

Your wealth road map is not a one-off assessment. At the very least, it needs re-evaluation yearly and whenever you experience a major change in your circumstances.

Improve your current financial position

Before you can start planning for the long term, you must take an honest look at your present financial situation. What needs improving? What bad habits need nipping in the bud? Address these now to avoid financial headaches later.

1.     Reduce your credit card debt

Do you have credit card debt and little or no assets, equity or savings? Even a small amount of debt can snowball over time and ruin your chances of saving enough for a self-funded retirement. You must pay off – or at least reduce – your credit card debt before you start investing. It may even be prudent to refinance your debt by increasing your home loan. By doing this, you can reduce the credit card interest you pay by two thirds. However, you would also need to rein in your spending. Otherwise, you could fall into a vicious cycle of refinancing your home loan every few years to pay off your continuing debt.

2.     Finalise the family home

If you are renovating, building, selling or upgrading the family home, this must be finalised before you commit to a long-term financial plan. You don’t want to take on a hastened investment that ends up costing you dearly because you were too preoccupied with small to medium-sized goals.

3.     Manage your budget

At some point in the future, you will need to pay off your investment debts. If you currently struggle to budget and save, chances are you’ll struggle in the future, too. Failing to live within your means places long-term strategies and investments in jeopardy. To invest and build your assets, you must first work out your expenses, commit yourself to a realistic budget and regularly save money from your disposable after-tax income.

4.     Manage your bank accounts

Effective banking practices allow you to control your household expenses and manage your financial goals. For example:

  • Have no more than one credit card or debit card. Use this card to pay all the household expenses. Ensure the limit is no more than $2000.
  • If you have a spouse or partner, ensure both incomes are paid into your home loan/offset account.
  • Create separate accounts for holiday savings, household budget, education and investment/property. Set up monthly or fortnightly direct debit payments into each account.
  • The investment/property account can be where any rental income goes in and property expenses go out. If you don’t have a property, you can use this account to save for your own home, investment property, shares or managed fund.
  • The education fund can be a savings account or another offset account split against the home loan (where the balance offsets the home mortgage and the interest is calculated on the net amount). This allows you to save for your children’s education while reducing the interest on your home loan. Use money in this account for school fees, uniforms and books, and save for future private school and/or university fees. 

5.     Your age and retirement goals

If you don’t allow yourself ample time to grow your wealth and assets, you may need to adjust your lifestyle at retirement. People who start planning in their 40s have a 20-year horizon to work with. This gives them a much better chance of achieving their retirement goals than someone who is in their 50s with limited assets. However, when there is a will, there is a way. It starts with an honest money conversation.  

Once you have improved your current financial situation, you can start looking at ways to invest your money.

Stay tuned next week for how you can make wise investment decisions based on your attitudes towards risk.

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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

 

 

You want to live a big life? Have a Magna Vision

You want to live a big life? Have a Magna Vision

Part 2 - How to Become an Investorgetic® The secret to becoming a Millionaire

Wishes, dreams, desires. There’s no room for fanciful thinking when creating your financial future. If you want to build your wealth, you need a vision. Not a fleeting, fluctuating vision. A considered, long-term vision bolstered by a plan of action. A Magna Vision.

Magna is the Latin word for “big”. A Magna Vision is a vision for your whole life: who you want to be, what you want to accomplish, what you want to have, what you need to experience. It’s not a five-year or 10-year plan. It’s a life plan. It’s what you want for yourself, your children and your grandchildren. It’s Magna! It’s bigger than yourself.  

Your Magna Vision is a prime motivator. If you’re someone who struggles with making the right money choices, it will be the driving force that gets you out of bed each day. It’s what ensures you take all the necessary steps to create sustainable change in your life. It will excite you and inject passion into everything you do.

What’s your Magna Vision?

It’s impossible to get results if you don’t have a firm grasp of what you want to achieve. Simply telling yourself, “I want to retire well and help my kids go to university,” is too vague. Take the time to work out precisely what your Magna Vision is.

Be as detailed as possible. What does retiring “well” mean? When will you retire? How many years do you expect to live after you retire? What will your expenses be? Exactly how much money will you need each week to maintain the lifestyle you want? How much will you need to save to be able to send your children to university?

Your Magna Vision does not belong to you alone. It affects your partner and your family. You can’t work it out on your own. You need to get the people closest to you on board. How can you achieve your Magna Vision if your partner is not on the same wavelength? You need to get the input and support of the people you love most for it to work. 

Make self-funded retirement a reality

Your Magna Vision allows you to be in full control of your financial future. Becoming self-funded at retirement is a Magna Vision. It means you have made the decision to retire without relying on the pension.

It’s a vision that makes sense on many levels: most people would struggle to live on the pension ($22,721 per year for a single and $34,252 per year for a couple). Also, the pension in its current form is unsustainable. By the time you reach retirement age, the government’s criteria might have changed and you will be ineligible, or it might not exist at all.

So, how can you start working towards a Magna Vision of self-funded retirement? You need to consider:

1.     Society’s needs: What difference do you want to make as you transition from our 9-5 or 8-6 daily existence? How will you do this?

2.     Your needs: What basic needs and expenses must be met for you to survive? What about other needs – the things that nourish your soul and make life worth living? Do you want to travel and explore the world? How much do you need to put aside for one-off purchases, such as a car and home? Do you want to move when you retire? If so, where?

3.     Your numbers: How much will this kind of lifestyle cost? Do you want to leave some money aside for your children? Do you want to leave any of your capital for your children or grandchildren? Or will you live off your capital and not leave anything for anyone? (Mostly couples and singles without children opt for this.) 

The amount of money you will need to have saved for retirement is determined by how much you will need each year to live the lifestyle you want (assuming your home mortgage is paid). For example: 

·      $50,000 per year income in retirement = $1.25 million investment

·      $70,000 per year income in retirement = $1.75 million investment

Trust the process

For a Magna Vision to become a reality, you must focus on the process. Trust that the process will deliver the outcome. If you are always looking at the outcome, and not all the vital steps in between, you’ll feel overwhelmed. You’ll wander off course and return to old habits. Find meaning and joy in the process, and celebrate all the small victories along the way.

Stay tuned next week for step 1 of creating a strategy for financial liberation.

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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

 

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

 

 

From Consumerholic to Investorgetic®: Your Millionaire Path

From Consumerholic to Investorgetic®: Your Millionaire Path

New year, new opportunities to build your wealth

Forget New Year’s resolutions. If you want to make real financial change in your life, you need a strategy.

How many times have you made a resolution to lose weight, stop drinking, stress less and exercise more? We start off with the best of intentions, but without a solid plan, we quickly lose focus. Within a week or two, we resort to old habits. Nothing changes. It's the same when it comes to your finances. You cannot pay down your debts, build your wealth and achieve sustainable change without transforming your mindset and working from a strategy.

Take an honest look at your financial situation. Do you spend to live, or live to spend? We are a nation of Consumerholics: we rack up debt for things we don’t need and have lost sight of what is truly important.

How do we regain control of our money? How can we rediscover what truly matters?  

You must become an Investorgetic®

An Investorgetic® is someone who is passionate about building their wealth. They invest their money responsibly, are socially aware, put high value on their relationships and use their wealth and knowledge to help future generations.  Watch this short video for tips on what people are doing to become Investorgetic®:

If making ends meet is a struggle for you right now, this may seem unachievable. But it’s not. Anyone can become an Investorgetic®. It takes commitment, strategy and three fundamental elements:  

1.     Magna Vision

“Life should not be a series of busy nothings.” 

What do you want your life to be like? Be clear about your vision for the future. Let it light up every aspect of your life and form the basis of every decision. Where do you want to be in 30 years? Do you want to be debt-free, own your own home, have enough money so you can be self-funded at retirement? Think about the future of your children. Is it important to you to have enough money set aside so they can attend university? Remember, your mindset and the actions you take now pave the way for their own financial independence. Don’t let the next shiny, new thing make you lose focus of your vision. Every time you make a purchasing decision, ask yourself: will this help or hinder my chances of achieving my goals?

2.     Courage

“Be strong and courageous.”

I’ll be honest, letting go of your Consumerholic mindset isn’t easy. You’ll face many challenges along the way. It takes courage to embark on a journey of financial transformation. It’s natural to feel apprehensive and scared. They key is to remember your goals and not let fear impede your success and happiness. You deserve financial freedom. You deserve the life you want. Embrace this opportunity to change your life and muster the strength to deal with challenges as they come.

3.     Faith

“Ask and you shall receive. Seek and you shall find. Knock and it will be opened to you.”

The journey won’t always be easy. There’ll be times when you question yourself; times when it all seems so hard. The key is to have faith in the process. It will work. If you have a solid system in place and take a long-term approach, you will gain control of your finances. You’ll not only survive, but thrive.

Best of all, you don’t have to work out your new financial strategy alone.

Over the next 12 weeks, I will guide you through the steps you need to take to make the transformation from Consumerholic to Investorgetic®. Stay tuned for next week’s article on how an Investorgetic® mindset can revolutionise your finances.

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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

The Path of the Brave or the Path of the Kardashians?

The Path of the Brave or the Path of the Kardashians?

This is principle # 1 - how to integrate spiritual principles into your finances part of the 7 principles on how to build wealth with Money Intelligence. I will share the 7 principles in this blog and video for the next two weeks till New Year's  eve. If you believe in this message, please share with those you love. 

"Comparison is the thief of joy" Theodore Roosevelt

After spending 25 years working as a financial professional and listening to thousands of money conversations with people from all socio-economic, cultural and religious backgrounds, I can say that the biggest problem our society as a whole has is our relationship with money

Every social structure we have created, every social interaction we have, every relationship we pursue has money "stuck with it". I have made (and still do!) many money mistakes while having conversations in my meeting room with so many good people who are looking for a different way of living life but do what society expects them to do: 

"We bought the house on the beach because my sister in law bought one in the next suburb and now we are stuck with a huge mortgage. We know we can't afford it but we need to find a way to pay it off"

"I am making money in my business, I deserve an expensive car to impress the women" 

"Next year we will be celebrating our business success on our new expensive yacht and show it off for all to see that we made it"

"Life is what happens to you while you're having other plans" John Lennon

How we view money is the same way we view ourselves, life and relationships. Those views are a function of our social construct that determines as a whole what's acceptable and what's not.

What is acceptable now in this modern age is pursuing the lifestyle of the rich and famous, the successful and the visible: live the dream even if you end up mortgaging everything you own including your undies (well if you buy them on credit card you are mortgaging them!); send your kids to expensive private schools for future career connections while you draw down against your home equity and get in more debt; accept jobs that don't inspire you because you have to pay the mortgage and feel the need to reward yourself with an expensive leased car. You feel you need to keep the charade to keep it all going while you're dreaming of another life. 

How tiring is that? 

"I never lose, I either win or learn" Nelson Mandela

As 2016 comes to an end, I reflect on a challenging but spiritually educating year, once I accepted the hero's call to spread my message of Money Intelligence. Joseph Campbell outlines the Hero's Journey that we all go through once we answer the call to a new adventure. I took time to think about the year that's about to finish. I realised that I - like my clients who come to see me with money dilemmas - got caught in the same dilemma as well! I realised that the tiredness, the sickness and the mistakes made hiring the wrong people the past few months stemmed from my need to prove something to myself and others just like those who want an expensive leased car and I totally forgot why I wrote the book in the first place!

How tiring is that? 

We are all human and we fall into the trap of trying to prove something to someone or to ourselves. From my personal experience, this unconscious automatic need brings nothing but misery, costly mistakes, an unsustainable lifestyle and con artists who take advantage of our unconscious flawed desires. I conclude that this is a result of a weakness in one's heart. It's a weakness in my heart; a weakness in our hearts; a weakness in our society's heart. There is darkness in all of us and it manifests in needing to keep up with the Kardashians, forming hasty and weak relationships in business and life. Just watch the money go to waste!

"But like darkness present in us, light is in us too"

This light is what has carried humanity for thousands of years to this point. Our Hero's Journey should we choose to accept it, allows us to see our weaknesses but also gives us a chance to make a choice to use the strength in our hearts to rise above our weaknesses, our personal limitations, our limiting beliefs, and our need to prove all the time that we are worthy and that we are good enough to be loved and noticed. 

We are all on this human path feeling like life takes us wherever it goes. But it's not life that does that. It's our spirit forcing us to experience the good and the bad so that this weakness in our hearts can be strengthened by what we become aware of. Self awareness is the key to successful life, business, relationships and a rich and abundant life. Without this awareness, we would keep making the same mistakes while expecting a different result. It's not Money Intelligent, is it?

Watch this 1 minute video on money and spirituality before I conclude below how to "get out of the rut"

"Forgiveness is a virtue of the brave" Indira Gandhi

To let go of this weakness we must see that any failure is a lesson in training for success in another time and place. If we don't learn the lesson, we keep living the same ground hog day.

Forgiving ourselves and others (we are all trying to survive in our own way) is the first step towards strengthening our heart. This allows us to make courageous decisions and as a result actions that are aligned with our real true self. Who we are becomes a function of our heart's strengths not weaknesses. 

"The Path of the Brave or the Path of the Kardashians?"

For all those awesome people I meet who come to see me and for those who are destined to cross paths with me, I say to you that success in life, business and money comes when you choose the path of the brave and live your life according to your spiritual beliefs and according to your values. If things are not working for you right now, it's because of this spiritual mis-alignment.

Take the time this Christmas to ponder what went wrong, what went right and which path (the path of the brave or the path of the Kardashians!) you want to walk on in 2017 and beyond. 

Stay tuned for tomorrow as I share Principle # 2: Identify the Money Intelligence Values that most resonate with you and learn how to integrate them into your money practices.  

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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

Build your Wealth with Money Intelligence - Introduction to 7 Principles

Build your Wealth with Money Intelligence - Introduction to 7 Principles

The Pension reality check - its days are numbered                                                

Australia and western governments across the world are facing one of the biggest challenges in the history of humanity: the increasing numbers of older people living longer on the pension. There are currently over 3.3 million of 65-year-olds in Australia and 84% of them are receiving the pension. This number is expected to double to 6 million by 2040. As the numbers keep on climbing in the next 25 years, the government will not afford to pay the pension, the related health and care costs without affecting the economy and sacrificing the future needs of the younger generations. 

What can Australia (and western countries alike) do to weather the increasing budget deficits as more and more people retire without adequate retirement savings? My professional experience tells me that the middle class must plan for a future without the pension and get off the Consumerholic treadmill by increasing its Money Intelligence level. 

My personal experience of dealing with hundreds of people over the years and having thousands of conversations in my office tells me that thankfully there is a solution to this impending crisis. The solution lies in shifting from a mindset and culture of entitlement to one of self-determination. It is the power of the individual: You can make faster change than big governments stuck with red tape and politics and this will eventually make the difference to society.  I share my Magna Vision in my book Money Intelligence® - Anchored in Values. MY Magna Vision for Australia is to see an improvement in the numbers from 16% to 50% of those retiring in the next 25 years to become self-funded retirees. If you increase your Money Intelligence™ (MQ) level, you will be able to build your wealth and achieve financial liberation. 

How do you build your wealth?

Watch this Introductory 2 minute video and begin Now your journey towards financial independence

 

The book’s main message is that you are not born with a Money Intelligence gene. Money Intelligence is learn-able and anyone can improve their MQ to change one’s human condition.  I am asking each individual to liberate oneself from the physiological survival of the 9-5 daily grind—stuck with a mortgage and in need of a steady income—by becoming financially liberated. Then you can turn your attention to big-picture issues that this world needs to resolve—care about the environment, alleviate poverty, uphold freedom and pursue fairness.

In the book, I weave my parents' business story in Ramallah, Palestine throughout and share my clients' money journeys as I unveil my Money Intelligence® (MQ) model. I share the values and mindset principles behind the model with you, the reader to help you increase your MQ by:

1. Redefining the concept of “Financial Strategy” as I assert that you cannot afford to make financial mistakes based on flawed financial assumptions. At stake is your retirement plan. 

2. Proposing that Mindset is the basis for MQ: It is Mindset that determines the outcome and you need to understand your Money Mindset, explore your values, understand how your money beliefs determine your thoughts and consequently shape your destiny. I present you with 18 values and 48 money mindset principles that form the basis of the Money Intelligence model.

3. Calling for the Individual’s Financial Transformation to bring about social change by:

a) Shifting your mindset from Consumerholic to Investorgetic® —a term I coined to mean someone who is passionate about investing with a focus on your financial future. Learn how I get to identify sound and effective financial strategies and how I use those strategies to set the financial plan.

b) Adopting the Investment Philosophy of Enough: Say no to greed and quantify your “enough money number” to retire on.

c) Becoming a Money Anchor: The Money Anchor is someone who believes that contribution, empowerment and compassion are the values you need to adopt in order to support each other starting with family, then society and planet Earth. The Money Anchor knows that giving of their time, knowledge and money is their way of following their life calling of contribution, empowerment and compassion. Without becoming a Money Anchor, money making is meaningless. 

To find out how you can build your wealth with Money Intelligence, begin your journey now and download the first three chapters here: http://www.moneyintelligence.com.au/free-stuff/

Printed and ebook copy purchase is available on SHOPIFY. Special Christmas book sale is on now from 12th to 23rd December 2016. 

Blog image: The Olive Tree by Natalie Najjar. Part of body of artwork created and featured in Money Intelligence® book

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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

 

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