Your money working or you?
“Inflation is when you pay fifteen dollars for the ten-dollar haircut you used to get for five dollars when you had hair.” – Sam Ewing
There are only three places money can come from – you working, your money working or from the Government. We all know that pressure on welfare is growing due to rising life expectancies and nobody expects to work forever. This is why prudent money managers focus on building a portfolio that will keep them in their later years.
Write down the reason.
“Success or failure is often determined on the drawing board.” – Robert J. McKain
Life is one long learning experience and you are going to make some good and bad investment decisions. Whenever you buy an asset, write out the reasons for buying it on a piece of paper and keep it where you can review it regularly. This will give you invaluable education.
Women have special needs.
“Happiness is not in having or being; it is in doing.” – Lilian E. Watson
Historically women live longer than men and they have less time in the workforce. The result is that many of them have insufficient money to retire on. This is why it’s vital to invest in a range of assets at as early an age as possible, both to gain experience and to give compound interest time to work its magic.
“Winning starts with beginning.” – Robert H. Schuller
There are some assets that are not distributed in terms of your will. These include property held as joint tenants and money in superannuation. So make sure you take these into account when you are reviewing your will.
“Thinking is one thing no one has ever been able to tax.” – Charles F. Kettering
Everybody likes to save by buying wholesale and you can even do it with managed funds like wholesale share trusts which offer much lower ongoing management fees. The only challenge is that you need to have fairly large chunks of money to participate. Don’t despair if you are only a small investor – you can still access wholesale funds via master trusts and wrap accounts.
Who wants to be a millionaire
“Success seems to be largely a matter of hanging on after others have let go.” – William Feather
Almost everybody wants to be a millionaire but the majority never make the effort to start. If you follow the principles in this book, the magic million status will almost certainly be yours.
What’s the bottom line
“Effort only releases its reward after a person refuses to quit.” – Napoleon Hill
Earn $50 000 and spend $49 000 and you’ve got $1000 left to invest. However, if you increase your earnings to $55 000 and keep your spending at $49 000, you’ve got $6 000 to invest. Yes, an increase in earnings of 10% will increase your bottom line by 600%.
Weighed down by debt
“Late payment is catching.” – John Hope
If your financial situation looks hopeless, seek counselling as soon as possible. In many cases it’s possible to ease the pain by making an arrangement with your creditors and in some cases bankruptcy may also be an option. The main thing is to bite the bullet so you can start to make things better – usually the longer you wait the worse it gets.
“The whole idea…is to enable you to see mentally the picture at all hours of the day.” – Claude M. Bristol
Before you ask “what should I invest in?” you should be asking “what investment vehicle should I use?” The most appropriate one may be superannuation, insurance bonds, growth trusts or possibly even a bank account in your own name. The right vehicle will save you tax and may also protect your estate from creditors in the event of bankruptcy.