1. Keep your core expenses low
Being a financial adviser would lead you to believe I am obsessed with money. The truth is I don’t believe money buys happiness, money gives you choices. Its what you do with those choices that makes you happy.
2. Don’t spend simply because you can
I know that BMW you have your eye on is amazing, but after a couple of weeks the novelty will have worn off and you will be left with a huge monthly payment or debt that restricts your options. Financial flexibility gives you options, so when you get a great opportunity, you don’t need to think twice. Do this, and you’ll have much nicer cars and houses in your future.
3. Be fearless, don’t let your age stop you achieving your goals
Don’t be insecure about your age (whatever that age might be). You are never too young or too old to make a huge difference. You are the oldest you’ve ever been and the youngest you’ll ever be.
4. Take a Risk!
Your confidence is at its highest level (erring on over confident!), don’t be put off because no one has ever done it before. This is the time in life where you can afford to take risks, if the risk doesn’t pay off, relax, you can still earn more money.
5. Develop the habit of disciplined saving
Understanding the options that open up to you if you have a few quid in the bank is life changing. That job you hate? You can happily hand in your resignation knowing that the rent and bills are covered. The biggest positive of having savings is knowing that you are in control. From your very first pay packet, set aside an amount for savings and pensions each month, aim for at least 15%.
6. Appreciate the power of compounding
For most people the only way to obtain money is to do a job. Compounding gives you money without having to work for it. No Really! Albert Einstein allegedly called this deceptively simple formula the “greatest mathematical discovery of all time.” If you invested £100 per month, for 30 years, at 5% return, it could be worth c£84,145.
7. Don’t be afraid to ask
It’s too easy to come up against a hurdle and instead of jumping over it you allow it to lead you down a fork in the road which simply delays you arriving at your destination. Find an expert/mentor that can help guide you towards your goal and keep you on track – People like to give advice!
8. Find a healthy life balance
Get into good habits now. Finding a healthy balance in life is so important as you get older, get enough sleep, be active, eat well and don’t drink so much!
9. Build your asset bank
Real wealth is generated by owning an asset that generates an income:-
· Write a Christmas Song, hours of airtime every year; failing that here are some other ideas…
· Invent something
· Buy a property, if you decide to move away you can rent it out or sell it
· Use your income to invest
· Create a business. If it’s not successful you have another 40 years to have another go!
· Whatever works for you, but the sooner you start creating wealth the better.
10. Speak to a Financial Planner
Getting good financial advice can change your life. Speaking to a financial planner will get you set on the right path.
Author: Joanne Dugdale
