To achieve exceptional results, you need to follow the example of exceptional wealth builders. Here are five strategies they use that you can implement to grow your own wealth.
1. Keep a close eye on your financial wellbeing
Take a few hours every month to do your financial admin. File your policies, check on your investments and study your bank statements. Understand where you’re spending your money, because you’ll be surprised by how the small expenses eat away at your ability to save and invest.
2. Don’t underestimate the power of a monthly budget
If you don’t tell your money where to go, it will leave you penniless. A monthly budget keeps you disciplined. You know how much you can afford to spend, save and invest. It enables you to focus on what’s important so you aren’t spending “unconsciously” on unnecessary stuff.
3. Eliminate your short-term debt
If you’re living on credit, you’re making a bank wealthy, not yourself. If you want to clear all your debt, start by settling the smallest debt first. As you free up your monthly repayments, redirect this money to pay off bigger debts faster. Expert wealth builders use the ”freed-up” money to settle the next-highest debt and continue this process until their short-term debt is fully paid off.
4. Protect your wealth
Your future income is your biggest asset. South Africa has one of the highest accident death rates in the world. You can’t rely on the Road Accident Fund and your company pension or provident fund to pay you out if you’re involved in an accident. Seek financial advice to provide for unwanted events like disability and chronic diseases. Also make sure you have enough money put away for emergencies so you don’t have to go into debt when a crisis occurs.
5. Have a savings plan
A straightforward savings plan works best. It will help you to determine which investment vehicles will suit you best. Write down your savings goals and be specific about:
- What you are trying to achieve.
- How much time you have to save for your goal.
- How much risk you are prepared to take in the markets.
- How much you can afford to save every month.
Once you’ve implemented these money management habits, stick to them. Stay focused on your hopes, dreams and aspirations and revisit your strategy once a year to monitor your progress.
Share this article:
Linked In | Facebook | Twitter | Email |
