1. They keep learning
Once they’ve identified areas in which they want to gain wealth, they start educating themselves in those fields. You can invest in your self-knowledge by reading the relevant books, following the right bloggers and spokespeople. There are a lot of resources out there (although it’s important to first check their credibility) that will help educate your financial decisions. Or of course just ask your adviser for updates – we live and breathe this stuff every day.
2. They ask for what they want
Asking for what you want takes confidence and belief in your own value. Allow the experience of mentors, within an official and unofficial capacity, to guide you on what to ask for and when. It’s all part of the old adage – if you don’t ask, you don’t get.
3. They get onto the property ladder early
Buying a house as early as possible opens up the opportunity for other investments. By then paying off your mortgage as quickly as you can, you can decrease your interest costs and keep more money in your own pocket. Once you reach particular loan-to-value ratios, you have the ability to leverage other investments off of your property and use money you formerly spent on mortgage repayments on potential income sources like managed funds.
4. They seek out passive income options
Passive income is the money received for little effort or personal time from investments such as rental properties and shares. If you’re looking at long-term passive income, rental properties could be a good option as often you’ll have tenants paying off the mortgage. Receiving regular lump-sum dividend payments from shares in a company is another option for passive income.
5. They run their personal finances like a business
Know the importance of budgeting and cashflow. A clear budget helps keep you on top of your spending and make you aware how much you actually have leftover to invest.
6. They spend and borrow smartly
Ideally all spending should be done with cash that you have and not bought on credit or higher purchase, as you’ll be subject to higher interest rates. Try not to borrow money for things that decrease in value. If you do need to borrow money, make your mortgage work for you. Do not make the mistake of setting the loan up within the mortgage as you’ll end up paying interest on the item over the lifetime of the mortgage.
7. They invest
Options for generating wealth are spread over multiple platforms.
8. They insure
Time, effort and money into organising their finances and growing wealth are protected by the right insurance. What insurance you need depends on your personal situation and who you need to take care of. For example, your family.
9. They seek advice
Successful people leverage the knowledge and advice of professionals. For your money matters, financial advisers are well placed as it’s their job to know what’s going on and stay up to date. An adviser will help you create a tailored financial plan based on your goals, objectives and risk tolerance. Every individual requires a unique plan, which will develop throughout your lifetime as your circumstances, priorities and goals change.