Tag Archives | financial success

Habits of Financially Successful People

SuccessRockHabits of Financially Successful People

Achieving financial success in life has little to do with academic qualifications and everything to do with habits and mindset. Observing, reading about and mixing with financially successful people are good ways to understand what makes them successful. Financially successful people are generally not motivated by the trappings that money can buy. Their focus is on what they can achieve in the long term rather than what they can enjoy in the present. They have clear financial goals, they think big and they set challenges for themselves. They are not particularly interested in what people think of them or their lifestyle. They strive to make more and spend less.

Financially successful people are optimistic. They look for opportunities and they are not afraid to take them. They see the benefit in taking calculated risks for a better return. Obstacles do not deter them. Whereas others are driven by fear and greed, financially successful people keep their cool, do their sums and take an objective view. They work hard and are always looking at ways to get ahead. They take an active approach to building wealth rather passively waiting for a lottery win.

It is sometimes said that you need money to make money. Financially successful people use the principle that you need other people’s money to make money. They understand the principle of leverage. They take on debt, but the purpose of their borrowing is not to spend; it is to invest. They have a good awareness of their own strengths and weaknesses and are not afraid to call upon experts to advise them. Education is not essential – just the ability to know who to ask and how to acquire specific information.

That said, knowing the habits of financially successful people is one thing, putting them into practice is another!

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What a Financial Planner Can Do For You

SuccessWhat a Financial Planner Can Do For You

Achieving goals is much easier when you have expert help. Whether your goals are to reach peak performance in sport or fitness, to lose weight, to improve your health or to develop your career, having someone on hand to guide you, motivate you and provide expert knowledge can make the difference between success and failure. When it comes to financial success, it is no different.

The role of a financial planner is to take a good look at your circumstances and help you develop strategies to reach your goals. There is a big difference between a financial planner and an investment adviser. An investment plan focuses on investment strategy and how to set up an investment portfolio. However, many people don’t require investment advice, with the exception of KiwiSaver advice, until later in life when their mortgage is paid off. A financial planner provides comprehensive advice not only on investment but all other areas related to managing money. This could include advice on how to develop a budget, how to set up your bank accounts to manage your money effectively, using insurance to manage risk, help with tax planning, retirement planning and estate planning.

Sometimes there are specific circumstances to consider, such as starting a family, buying a house, separating from a partner, receiving an inheritance or investing the proceeds of the sale of a property or business. In all these situations, a financial planner can provide options and strategies as well as specific advice.

Your relationship with your financial planner is one that can be long term to keep you on the right track towards achieving your goals. Working with a financial planner can give you peace of mind that your current and future financial situation is as secure as it can be and your financial risks are managed.

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Invest in Yourself

Invest in Yourself

One of the best investments you can make in life is to invest in yourself. Being physically and mentally in good shape makes you happier and improves your chances of financial success. Think of the personal attributes of the most financially successful people you know. There is a correlation between financial success and personal qualities such as being smart, optimistic, mentally alert, active and sociable.

Spending money on yourself is a good idea if you are likely to get a return on your investment through increased income or opportunities. Education is the most obvious form of investment in yourself, but there are others, such as:

  • Improving your physical fitness, for example by joining a gym or sports club or hiring a personal trainer. Physical fitness is known to aid mental alertness, a ‘can do’ attitude and increased stamina and can therefore result in improved performance at work and greater prospects for promotion.
  • Creating the right mindset by increasing motivation and overcoming negative influences such as stress and depression. Spending money on a meditation course, motivational books and seminars, or psychological counselling are examples of how to invest in your mindset. Having a positive mindset means you are more likely to spot opportunities and follow up on them.
  • Building networks of friends and contacts, for example by joining clubs, networking groups or community organisations. Having a wide circle of influence can pay off through increased business referrals or new business and employment opportunities.
  • Becoming a happier person by doing things you love. Spending money on hobbies, interests and your passions has a much stronger and longer lasting effect on happiness than spending money on possessions. Giving to others can also be a source of happiness. Happiness goes along with a positive, optimistic mindset that leads to success.
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