7 Things to Think About
Managing and being across your money and financial issues requires constant attention, and here are 7 key things to think about regarding your money:
- Money Mindset & Psychology
- Wealth starts in the mind: Your financial outcomes are often driven by subconscious beliefs, childhood experiences, and your "money story".
- Emotions drive decisions: People often make financial decisions based on emotion, not logic. Identifying "money blocks" (fears, limiting beliefs) is crucial to changing behaviour.
- Budgeting as a Proactive Habit
- Plan before spending: Successful people budget before they receive their money, not after. It’s a tool for predicting financial results and ensuring income covers expenses.
- Avoid lifestyle inflation: True wealth grows when income increases but expenses remain controlled.
- Paying Yourself First (Savings Priority)
- Prioritise savings: No matter how much is earned, a set percentage should be saved or invested before discretionary spending.
- Build an Emergency Fund: A solid financial plan includes funds for unexpected events.
- Investing and Wealth Growth
- Assets vs. Liabilities: The wealthy focus on acquiring income-producing assets (investments, businesses) rather than liabilities that drain resources.
- Diversification: Successful investors often invest outside of standard superannuation/retirement funds to spread risk, including stocks, real estate or high-interest accounts.
- Managing Debt and Risk
- Understand good vs. bad debt: High-interest consumer debt is detrimental, whereas strategic debt can sometimes aid in wealth accumulation.
- Protect assets: Utilising insurance (life, home, car) is crucial to protect against the unexpected, serving as a safety net.
- Check Your Super
- Don't ignore it: Your super is very important when it comes to your retirement, so checking in on its progressing, speak with a financial professional to discuss your super options and forecasting your future matters.
- Don't ignore it: Your super is very important when it comes to your retirement, so checking in on its progressing, speak with a financial professional to discuss your super options and forecasting your future matters.
- Long-Term Goal Setting & Purpose
- Think 10–30 years ahead: Financial decisions should be guided by a long-term life plan rather than instant gratification.
- Values-based spending: Understanding what money actually means to you (e.g., freedom, security, generosity) helps determine "how much is enough"
These are all things you can do no matter where you are - at work, on the train and at home (even on the toilet!!!)
These things all matter, even the little things, because they all add up to set you on the path you want to achieve.
