The MQ Type Assessment evaluates your mindset, behaviours and results when it comes to making and managing money. Essentially personal financial management is about money coming in (income) from work or investments and money going out (expenses) to pay for bills. What you are left with is savings which you can they use for investments to build your wealth.
INCOME - EXPENSES = SAVINGS
A Maker Shaker is someone who is more proactive about making money but not as proactive about managing it. Money comes but money goes, never stays for long. Maker Shakers tend to shake off/ spend money on short- term consumer adventures most likely on "luxury" items. Items they don't need but want.
Maker Shakers should be very proud of their ability to make money. In our society and business, money making skills and abilities are highly valued. Strong Maker Shakers income should be in the upper middle to high income bracket for their occupation. Strong Maker Shakers see opportunities and take risks at work. There are probably still some ways they could package and position themselves to serve more people, offer greater value and increase their income.
Maker Shakers in the upper income bracket may be paying more tax than they should. Strong Maker Shakers in the upper income bracket may be paying more tax than they should.
Maker(Proactive)
(Proactive)Manager
(Reactive)Breaker
Shaker(Reactive)
Maker Shakers should get advice and look for ways to legally minimise their tax.
Maker Shakers lifestyle tends to be fabulous. However, it is dependent on their ability to continue working and generating an income. What will happen when they retire and don’t have enough investments to retire on? Will they be able to live on the government pension (as at March 2018 it’s $907.60/fortnight for single pensioner and $1368.20/fortnight for couple)?
Truth be told, to maintain their current lifestyle in retirement they will need around 20 times their income in net assets, excluding their home (eg. $100,000 pa income requires approximately $2 million in income generating assets). Maybe retirement seems a long way away for Maker Shakers. Thirty years is not a long time to build their wealth. Ideally they should start in their mid 30’s to give themselves a measured approach.
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On the flip side, money seems to burn a hole in your pocket. Maker Shakers want to live in the "right" postcode. If they have a mortgage it is probably high, they tend to dress to impress, drive a flashy car, dine out at fancy restaurants, drink from the top shelf and go on expensive overseas holidays. If they are a woman they probably have a fetish that allows them to create a stunning collection of clothes, shoes, bags and cosmetics. If they are a man they probably have some hobby(ies) where they play games/ sports or with their toys (eg. cars, boats etc) that requires them to pour money into a bottomless pit. They could even be going backwards by going into credit card or personal debt.
What is missing is discipline. Maker Shakers could start by creating a budget that covers the 9 key expense areas every budget should have. They could also create an automatic savings plan so that some money is diverted away where it is hard for them to access and can be invested into income generating assets. If they are in debt then they could start by looking at any non-essential/ discretionary expenses they could reduce/ remove and pay off their consumer debts. Maker Shakers could do their preparation, create a list and set themselves a limit before they go shopping so they don’t make impulse purchases. They could set up their finances so their bills are paid in a timely manner and they avoid late penalties. If all of this seems too daunting then they should get some help, team up with a proactive Money Manager and a experienced Money Mentor and create a Winner Partnership.
The Maker Shakers immediate focus should be to get their money under management. In the short to medium term they should convert their work income into assets that will generate a passive income and allow them to build their wealth. They should look into tax effective investment vehicles like self-managed super funds (SMSF) and trusts to plan for their retirement and pass assets to the next generation. Maker Shakers should be careful who they get advice from. They should find a money mentor practices what they preach. They will have a much deeper understanding of the wealth creation journey.
