The path to wealth and financial freedom is “extremely" simple, but staying on it can be a whole lot trickier, one financial planner has said.
“Most people in life want one thing, and that is to be able to enjoy their life without having to work all the time,” Omniwealth financial planner Steven Korner said.
“We all currently hold the tools to become wealthy, the only thing we lack is a real desire to achieve it.”
The first step is to have investible income.
“If you are not happy with your current income, then make yourself more valuable to your employer to increase your earning potential,” he said.
“If you’re more entrepreneurial, think about a current problem in society and start your own company that offers a solution to that problem.”
It’s not rocket science. Mr Korner said saving will require discipline and the ability to avoid frivolous spending.
“Create a budget. This will create discipline and force you to put your desired savings aside. The faster you can save, the faster you will become wealthy,” he said.
Mr Korner reminded savers that saving alone won’t build wealth. Rather, savers need to invest in income-producing assets like shares or property.
“These assets generally have a greater rate of return than just leaving your money in a savings account over the long term,” he said.
“This will allow you to accumulate your wealth more rapidly and put you on the beach sipping your favourite drink much faster.”
The first three steps are a cycle that should be repeated and reviewed as one completion of the cycle won’t be enough to build wealth.
He argued that the first three steps and the discipline to repeat them are what separates the wealthy from the poor.
“Remember, it is easy to be average, everyone is doing it,” Mr Korner said.
“If you can’t be disciplined enough to start now you will find yourself relying on a pension at the end of your working life, instead of a comfortable income.
“The earlier you become disciplined in your approach to wealth, the more time you will have to build it.”
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