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10 steps to getting rich

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All of us should have greater goals in life than to simply be rich. However, it’s not a bad goal to have among these some other life-oriented ideals that will deliver greater happiness for you and your loved ones. That said; let’s examine the core things you need to do to get richer.

Making the million

The starting point is the goal itself, which you need to identify and then quantify. It might be $2 million in retirement, a house or a rental property in a seaside area you could live in one day. I don’t know. You have to know you and that’s a fundamental problem we all must face and beat to build wealth. 

It could be you!

In my speeches I advise business owners to not only do a business plan to make the business dream come true, I also suggest they do a YOU plan. This involves doing a SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis. A chief obstacle to business success is the person driving the business. Personal weaknesses can railroad great business plans because of impulsive behaviour, bad people skills, poor attention to finances, etc.

The same goes for building wealth and that’s why a financial plan should also be complemented with a YOU plan to ensure you don’t get in the way of your own success. For example, if you are binge shopper or a plan changer or very impressionable you could foil a great plan that has been created to build wealth.

Going against the goals

I have seen people who thought they were long-term, safe investors occasionally become short-term traders which saw them sell stocks and buy others where the actions were at complete odds with their stated goals.

Why are so few rich?

The history of the money world says that most people don’t get really rich because they are like most people. The odd ones in the world are the high-achievers who really knock ’em dead. Edward de Bono calls it lateral thinking or thinking outside the square.

A great way to change yourself, I believe, is to start thinking like a business owner when it comes to your wealth. Look for the blueprint for success by copying the best.

Coffee success

The Aussie version of Gloria Jean’s Coffees, which has been a rip-roaring franchise success, based its model on McDonald’s and searched for points of difference to try and do business better. Starting in 1996 it now has more than 400 franchises, operates in many countries around the world and has superseded the US operation, where it all started, in terms of growth and importance.

One of the co-founders, Peter Irvine, recently released a book – Win in Business – where he outlines 20 steps to create a great business. The first is about the vision and he thinks most of us aim too low and he rightly argues that we often go where our vision leads us.

While all the other 19 points are relevant, I think challenging your comfort zone, continual learning, getting a coach and combating negativity are really important for making a great business and making money.

The road to riches

The wealth wizards advise there are 10 steps to building a great wealth plan:

  1. Put together a great portfolio of diverse assets
  2. Get in early and allow time to grow your wealth
  3. Do a budget and manage your expenses
  4. Look at the total return of an investment – capital gain and the income
  5. Understand that high returns come with high risk
  6. Inflation reduces your real return, so adjust for it
  7. Become a tax expert and save money
  8. Understand how compound growth of great assets will turbo charge your wealth over time
  9. Know what you are saving now and create a target amount to make your dream come true
  10. Get a money coach or adviser or else make yourself into a money expert.
Going through change

You have to get serious about becoming richer and this is the first step. You then have to change those characteristics that have held you back in the past.

Next you have to know where you are exactly right now and this gives you the targets that have to be reformed or changed. 

True story

I saw a young guy who was not only in debt, he was injured at work, suffering depression and out of money, but he wanted to turn it all around.

His motivation was that he didn’t want to give his children a bad education in money, as he had received from his parents. His first step was to change the dream and the second was to ask for help from experts.

The experts looked at accessing his super because he was in dire straights. They suggested renting the house out for tax deductions until his wife could go back to work and his youngest child was at school. Then the family income would increase. He was also advised to move back in with his parents until that time.

Not only did the expertise give him a plan to change his devastating circumstances, it started working on his depression.

For advice you can trust book a complimentary first appointment with Switzer Financial Services today.

Important information: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice.

Published on: Friday, October 28, 2011

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