How to build your wealth strategically
We’d all like to think that money isn’t important to us. While many of us would value things like health, happiness, family and friends well above money; it is what money allows us to do that makes it valuable.
Now here is the catch, most Australians live from pay to pay with maybe a little in reserve. When our income stops, we often end up in financial stress within months or even weeks. How would you like to have residual income so that if you want time off from work or want to retire, you still have a regular income that is not dependent on the government? That is what wealth building will do for you.
Create a personal strategic plan
Businesses have strategic plans – why not individuals?
Strategic plans are tools that organisations use to identify their priorities and values and create common goals. They provide a framework for all decisions from the selection of staff and the distribution of resources down to the choice of which copy paper to use.
A strategic plan articulates ‘why’ the organisation does what it does, what it wants to achieve, the steps it will take to get there and the measures to assess the outcomes. It is always written down and can be referred to at any time. Strategic plans can also be broken into sections and include provisions for change and flexibility.
Most successful businesses have sound strategic plans, but few individuals do. It’s no coincidence that those that do are generally the ones with high-value personal wealth. They’ve planned it that way.
Create your own plan
The best strategic plans all include 3 basic things. A vision statement, a mission statement and a values statement.
A vision statement is a sentence or two outlining a picture of what you want to create. For your personal plan, set aside the time to thoroughly consider how you want your world to look in the future. What will you be doing? Who will you be living with? Where will you be living? Where will your income come from? What will you do for fun?
Your mission statement outlines what you are going to do to achieve your vision. Are you prepared to put in the time for additional study? Will you change jobs? Will you look for ways you can earn additional income?
Your values statement outlines how you plan to convert your vision into daily actions. Every decision should be looked at in terms of, “Is this moving me toward my goal or away from it?” “What is my priority here?”
Your decisions might include:
· Should I invest in a portfolio with guaranteed low returns or with high risk and high returns?
· Should I use more personal capital to finance the next step?
· Will I do this task myself or pay someone else to do it?
What are you willing to change to achieve your goals? This is where it is important to refer to the values in your strategic plan. Every decision should be made with these in mind. How you commute, how you balance your time, how much you spend on entertainment, clothing, holidays and so on.
You don’t have to live meagerly, you can have the things you want and save at the same time. It all comes down to knowing your priorities. There are many ways you can increase your earning capacity. Investing your money is one of the most reliable ways if done carefully.
Learn from the experts
To start a successful business, you need to do a lot of research and call in experienced advisors. The same applies to personal wealth. Are you willing to spend the time learning everything you need to know? If you don’t understand, find people to teach you.
There are always plenty of people happy to share their advice for free. Not all of it is useful to you, though. Before you act, consider if they have experience in the areas you need help.
Look for mentors that already have what you want and find out what they did to get there. Your path may end up being different but it is good to know all your options first.
It doesn’t matter if you don’t know anyone that might be a mentor for you. Look for the entrepreneurs and leaders in businesses you admire. Discover their stories in print and online. Find ways to talk to them in person. Go to their seminars or book an appointment with them. Surround yourself with people that inspire you.
“Do something each day that your future self will thank you for”
When you create your plan, break it down into bite-size chunks that you can easily achieve. Once you start crossing the little things off the list, providing you stick to the plan, the big things will start falling into place and they won’t seem so overwhelming.
When you are fully committed to your goal, your motivation will carry you through the rough patches. The important thing is to keep going one step at a time, one day at a time.
Call to action…
Helen Collier-Kogtevs is a successful multi-millionaire property investor, bestselling author and one of Australia’s leading property educators. Hear how Helen and her husband built their own property portfolio in a captivating podcast interview on The Mentor List website. Helen also shares her tips for creating an investment strategy and keeping on track with your goals.
Kick start your personal journey to success from the conversations David has with his inspirational guests on The Mentor List. www.mentorlist.com.au/helen
Click here now to listen or subscribe for automatic updates.