When it comes to growing your wealth, I have spent 25 plus years studying, researching and implementing everything I could learn from the wealthiest investors in the world.
Over the years I have discovered that there are certain things that all successful investors have or do. It shouldn’t be surprising to learn that this is the case, since it is common knowledge that success in life comes from consistently doing the right things.
While my journey to wealth looks more like a scraggly line, what I have learned is that when I apply the seven tips I’m going to share with you below, my results are always better than if I don’t (so I just do these days).
Here are my seen tips for how you can grow your wealth, simply and effectively. While there is no specific order, I have attempted to list these tips in the sequence in which you should consider implementing them for even better results.
Let’s get to it…
~Novel Serialisation: Heavens Fire~
- Get Your Money Mindset Right
The simple fact is that you could have the best investment strategy on the planet, but if your mindset is not set for success, you won’t get the results you desire.
Our money mindset has been shaped by the people around us as we grew up, people like your parents, family, friends, and educators. Each of these people will have impacted how and what you think about money.
My experience tells me that almost everyone has some limiting beliefs around money. To overcome these issues, first you need to recognise they exist and then learn how to overcome them.
For example, does money fly out of your bank account as quickly as it comes in? If so, this is likely a result of a scarcity mindset. You believe that money is hard to come by which leads to spending it as soon as you get it. To overcome this belief, understand that money is abundant, it’s just energy, and there is always more where the last lot came from, you just have to believe it.
- Know Your Money Surplus
This tip is my favourite, simply because it overcomes one of the most common objections to managing money that I come across, a budget. I don’t like budgets as they lead to the scarcity mindset I mentioned above. They are all about restriction and lack.
Instead, you should have a plan for your money which shows how much surplus you have each month.
Knowing in advance how much you plan to spend each month, and need to allocate to bills etc enables you to start your wealth journey with a head start.
Your surplus is simply what is left after you subtract all your living expenses, future planned expenses and goal amount, such as future travel or gifts.
- Emergency Buffer
It is no point growing your wealth if you haven’t put strategies in place to secure it for the long term.
Recent world events have highlighted the importance of an emergency buffer.
An emergency buffer is a minimum of three months and preferably six months of your living expenses saved in a bank account that you do not touch, unless there is an emergency, of course.
The type of emergencies that I am referring include accidents or illness that restrict your ability to earn your income. By having this emergency buffer in place you can continue to pay your bills while you overcome the disruption to your income.
I like to call this the ‘sleep at night’ wealth tip.
- Have a Plan (Strategy)
Throughout the years that I have been coaching people to grow their wealth, I have observed that a lot of investing is done without any defined plan about what they are doing or why.
Tony Robbins taught me that the secret to success is to find people that have what you want and replicate what they do.
This was great advice, because what I discovered was that successful investors all had one thing in common. They had a plan based on a strategy.
They knew where they were aiming to be in a period, and how they were going to get there. This meant that their investments were based on the outcomes they were aiming to achieve, and not something they heard or overheard.
- Eliminate Debt
To grow our wealth we use what Warren Buffett and others describe as the 8th wonder of the world, compounding. By reinvesting our returns into more investments, we are compounding our returns for larger gains over the long term.
The first benefit of eliminating debt is that we are removing the negative impact of compounding on our debt. Just as we use compounding for our benefit with our assets, the banks use it with our debt for their benefit.
Paying off debt more quickly reduces the amount of interest you pay.
The second benefit of paying of debt more quickly is that you can redirect the money that was being used for debt and put it to work for you in more investments. Again, getting the benefit of compounding working for you.
- Get Your Money Working For You
A sad reality of modern society is that most people work 40+ hours a week, in a job they don’t necessarily like, and don’t pay themselves anything for it.
What I mean is that at the end of a week or month, there is nothing left for you. All your money has gone on bills and stuff.
To reverse this problem, you want to put aside some money each pay period to get it to work for you. The more money you have working for you, the sooner it will accumulate into a larger pool and the larger the passive income flows that will be paid to you.
The ultimate goal is to have these passive income flows from your assets be large enough to fund your lifestyle, true financial freedom.
- Be Consistent – Rinse and Repeat
Once you have your system and plan, you are eliminating your debt, and you are putting money to work for you, the only focus you need from that point is to rinse and repeat.
Consistent investing every month will ensure that you accumulate a life changing value of assets over the long term.
This strategy of consistent application of these tips also ensures that you ride out the ups and downs of the markets. Over the long term the value you invest at today won’t matter, because in time the markets will have grown and your investments will have too, and you will have received income along the way as well.
There you have it, the 7 tips on how to grow your wealth that you can start applying from today for a secure financial future.
By Andrew Woodward
Andrew is a mindshift.money certified wealth coach and passionate cyclist. As a ‘financial educator’ with over 25 years’ experience he teaches business owners, entrepreneurs, and household CEO’s how to grow their wealth across multiple asset classes, without the need for someone else to do it for them. For the last 7 years he has been teaching people in Australia, New Zealand, Canada and the US, using his unique 3 pillar framework incorporating his money management and investing courses, to secure their financial future – knowing that nobody cares more about your wealth than you!
Visit: https://theinvestorsway.com.au/
