Does it take luck to become wealthy?
Some people say so, but I say that a smarter choice than waiting on luck to visit your doorstep is to make your own luck… at least you have more control over that.
So how can you make your own luck?
By doing what countless others do to grow their wealth… make smart money decisions that minimise your expenditures and maximise the returns on your investments.
Take a look at the following habits and strategies. Do your own habits and strategies align with them?
1. Save more than you spend
While this is an obvious strategy, don’t discount the power of reducing your spending.
Begin by rethinking your spending. Are you living above your means?
Adopt the mindset of “making do” when it comes to spending money.
- Buy only what you need – and pay cash for it
- Re-use and/or repair what you already have
- Borrow and/or share rarely used items with others
2. Wipe out your debts
As you slowly reduce your debts and free up money you’ll discover a snowball effect; you’ll have more money to pay off your remaining debts even faster.
Other benefits of paying off your debt include less stress, more money for the “extras” that make life enjoyable and even more money to save for your future.
You’ll also free up money – and opportunities – to follow through with your wealth creation plan…a plan that should include wealth building strategies such as buying a property for investment.
3. Use time to your advantage
Time is your friend when it comes to building wealth. For example, if you’ve decided to buy a property for investment purposes time is a necessary ingredient for it to grow in value…even if you bought it at a discount. (Buying at a discount simply means you’re buying someone else’s growth…which took time!)
If you’ve already purchased a property for investment, are you reducing the interest you pay using an offset account tied to your loan?
If not, have your accountant set up an offset account and each payday, toss your pay (and any rental income, bonus checks, etc) into it.
Charge your necessities throughout the month and then pay your credit card bill in full from this account so that you don’t pay any interest charges.
Why bother with an offset account?
The more cash you have in your offset account the greater the interest it will earn…and the less interest you’ll pay on your loan because the balance in your savings account will offset the balance of your loan!
4. Make more money
The other side of the wealth creation coin is making more money.
Essentially there are two ways to do this.:
Trade your time for money (a.k.a. a job or business) or put your money to work for you by creating passive income.
One way to create that passive income is to buy property for investment.
5. Avoid lifestyle inflation
Lifestyle inflation simply means you absorb any extra money into your daily living.
An easy way to prevent lifestyle creep is to put any extra money you receive away before you even get your hands on it.
6. Invest in property
While investing in the share market can make you money, buying a property for investment is more “user friendly”.
It’s easier to understand and what’s even better – you have more direct control over your results! Why do you think the 1% choose property investing to grow their wealth?
If you want to meet with like-minded people sharing the same interest for property investment, you should register to attend our next Property Investor Night.
At these FREE events held all across the country we discuss where the growth markets are right now, and share ways you can navigate your way to financial freedom through investing in property.
Seats fill up fast, so book yours now!