Posts Tagged ‘financial freedom’

What Do You Enjoy?

Friday, February 26th, 2010

I remember being at a business training session some time ago with Jamie McIntyre as the trainer and before we got started, Jamie asked everyone, ‘What do you enjoy doing?’

I couldn’t really answer. I was a wife and mother of four and of course I enjoyed being with my family but Jamie wanted more than that. He wanted to know what I enjoyed doing for me. I couldn’t understand why that was so hard to answer. It wasn’t just me though, there were others that couldn’t come up with much of a list.

We finally came to the conclusion that we had blocked out the things we enjoyed because we just didn’t have room for them in our lives. We either didn’t have enough time or money to enjoy them.

Is that how life is supposed to be?

Well everyone at that training session decided it wasn’t. If we wanted to increase our earning ability, not just a little but really increase it, we had to have a good reason. So that became our first task, to have some fun and work out what we really enjoyed doing.

Jamie explained that often when people have trouble with this it can be easier to start with all the things we don’t enjoy. So we began writing a list of all the things in our lives that caused us to feel angry, stressed, frustrated, fearful, dissatisfied or that we absolutely hated doing. As we did this we began to notice our feelings and how strongly we felt about not having those things in our life anymore.

Once we got through this list it was a lot easier to think of what our hearts really desired in our lives, what made us happy and fulfilled, what energised and motivated us and how we felt about not having them in our lives. The whole point of the excercise was to work out why these things weren’t a part of our lives and decide what we needed to do to change that.

At that training session we learnt that being motivated to create wealth in your life often offers some very important side benefits. Creating wealth is not just about earning more money it’s about having a better, more fulfilling and balanced life. Often the reason most people don’t live more financially fulfilling lives is because they have given up on, or never had, a reason why. They have forgotten what they really enjoy.

So let me ask you. ‘What do you enjoy’?

Have a Day you Enjoy

Teresa and the Team at

AustraliaWealth.com.au

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4 Steps on the Road to Wealth

Friday, February 19th, 2010

Every journey has to start somewhere, it doesn’t matter where you start but if you have a destination you want to reach then you have to start from somewhere. In other words if you want a life of financial freedom then it doesn’t matter what your financial situation is now what matters is you start doing what it to takes to achieve that.

In Jamie McIntyres book What I Didn’t Learn in School But Wish I Had he covers eight steps to get yourself in a situation where you can begin to invest. Then your investments can start generating some passive income, that is income that doesn’t require you being there to earn.

These are Jamie’s 8 Steps to Start You on the Path to Becoming a Millionaire:-

STEP 1 – SAVINGS

Saving will always be your first step to wealth. It doesn’t matter how much you earn you always need to save at least 10%. Learn this principle well, teach it to your kids as soon as they can understand, no matter what you earn or what you owe, SAVE. Even if you can’t manage 10% at first, save whatever you can, pay yourself first. Developing a savings habit creates a mental shift that makes wealth creation possible.

STEP 2 – SELL SOMETHING

Most of us have accumulated more stuff than we need or use – sell it. You would be surprised how much cash you can make by cleaning up and clearing out all those items. Use the money you make to begin your savings plan or to start an investment strategy.

STEP 3 – TAX

This step is about minimising the tax you pay. The majority of Australians, the middle income earners pay huge amounts of tax, there are legal ways to reduce the tax you pay. Tax rules are constantly changing so it’s best to ask your accountant some ways you can minimise the tax you pay.

STEP 4 – INCOME

You may be thinking an increase in income is easier said than done, that may be true but not impossible. One very important skill of the current century is the ability to think creatively and solve problems, if you can do this in your current field you have a valuable skill. Effective communication is another sort after ability that has the potential to earn you rewards. The ability to market a new idea or concept and bring it to reality can earn you huge amounts whether in your current field or independant of it. The art of negotiation is also a valuable skill, one or all of these skills have the potential to increase your income and put you in a position to negotiate a better wage or payment plan for yourself.

In the next post we will complete Jamies total of eight steps,

Have an Incredible Day

Teresa and the Team at

AustraliaWealth.com.au

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Your Financial Goals

Sunday, February 14th, 2010

In Jamie McIntyre’s book What I Didn’t Learn in School But Wish I Had, he breaks down the steps for you to establish what you will need to be financially secure, independant or free.

How much will it take for you to be financially free?

Congratulations if you know the answer to this question, most people don’t.

Doing the following excercises will help you figure out how much money you need to reach financial security, independance or freedom in your life.

A. How much will it take?

(Guess a figure that you think will mean financial freedom in your life – write down the first figure that comes to mind)

$_______________________

B. How long will it take to achieve?

(For now have a guess and write it down)

A._______________________

MAKING YOUR PERSONAL FINANCIAL DREAMS A REALITY

Everyone has the right to pursue his or her financial dreams. To turn those dreams into reality, we must identify precisely what they are. Following you will see five levels of financial well-being that are possible to attain. Use the list to clarify what dreams are most important for you to achieve in your lifetime.

A thought to remember : Clarity equals Power!

  1. Financial Protection
  2. Financial Security
  3. Financial Independance
  4. Financial Freedom
  5. Absolute Financial Freedom

Now we are going to define each level precisely so you can see an achievable goal and whats required to attain it.

The first thing to define is what you want financially-

Make some headings in your goal book better still give each a page

  • Goals    -    Set some time frames
  • Short Term 6 – 36 months
  • Intermediate 3-10 years
  • Long Term 10+ years

Next write (use pictures as well) under each heading what you want and place it in the time frame you think it will take to achieve

Toys and rewards – Things you want to own

  • House
  • Car
  • Art
  • Yacht
  • Jewels

Things you want to give or experience (for yourself or others)

  • Travel
  • Philanthropy
  • Buy a house for your parents or children

Economic goals

  • Reduction of debt
  • Cash in hand
  • Net worth
  • Annual Income from investments
  • New business profitability

1. Financial Protection

The precise amount of money you will require in liquid assets to be financially protected can be established by reviewing your current monthly expenses. What does it take for you to keep things together?

For example

  • Mortgage payment
  • Utilities
  • Transport
  • Food
  • Insurance
  • Private Superannuation

This does not include credit card or other debts just your basic survival expenses. Arrive at a figure then decide to save for six months financial protection. So this means you commit to setting aside enough money to cover six months of necessary expenses if you can’t earn any money.

2. Financial Security

Financial security is achieved when your investments produce an income equal to your financial protection figure (basic necessities). So your basic expenses are covered by the income produced by your investments.

3. Financial Independance

This means how much money you need to be independant from having to work. In other words duplicate your current income. Your investments need to generate at least the same amount of money as you are currently earning from your job. If however you earn enough to save and you don’t spend your entire income than what you need to earn to maintain your lifestyle would be less.

4. Financial Freedom

This goal is attained when you are earning more money than you require to live and you are able to maintain that income for the rest of your life.

5. Absolute Financial Freedom

This is when your investment income provides you with enough money to do whatever you want, when ever you want without having to work again.

Obviously you need a plan in place, and the sooner you start the more chance you have of obtaining it. You can achieve these levels through investing in business, property or shares  having a mixture of these investments is wise. Educating yourself on how to achieve these levels is essential without the knowledge you would find it difficult to get beyond the first or second levels.

Ask yourself the following…

  1. Which of your dreams is really important for you to turn into reality?
  2. By what age must you accomplish it?
  3. Write down the amount you guessed you will need to be financially secure?
  4. Write down the amount you calculated you need to be financially secure? ( is this figure higher or lower than what you guessed, for most peolpe it’s lower)
  5. Where are you today?

Have an Inspiring Day

Teresa and the Team at

AustraliaWealth.com.au


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Guide to Investing ~ Robert Kiyosaki, part 2

Saturday, January 30th, 2010

Today we will look at Investor Lesson’s five to twelve as they where taught to Robert Kiyosaki by his rich dad to mentally prepare him on his road to wealth accumulation. As you go through these lesson’s I hope you will realise the importance of your thoughts and beliefs, your mental state in creating your financial state.

Investor Lesson 5 ~ Are You Planning to Be Rich or Are You Planning to Be Poor? – It’s all about the words you choose to say and how you think. To test this out listen to how the people you come in contact with talk. What you say outloud is important but even more important is what you say silently to yourself this is where the most power in creating your world lies. Increase your wealth vocabulary, learn the language of the wealthy and use that language to change your reality.

Investor Lesson 6 ~ Getting Rich is Automatic…If You Have a Good Plan and Stick to It – According to rich dad investing is simple and often boring and this is why so many people are unsuccessful, they want the more exciting, high thrill hollywood version. Investing is a plan, a strategy for financial freedom and it can be extremely simple. So come up with a simple plan, that suits you, to achieve what you want and stick to it.

Investor Lesson 7 ~ How Can You Find The Plan That Is Right For You – Taking your time to think about your life and what you want from it is the first steps to figuring out your plan.It’s a good idea not to tell anyone your plan too soon, make sure it’s what you really want first, so you can’t be swayed to change your mind by the good intentions of family and friends. Find a financial planner you are happy with to help you work out your strategy, set realistic goals that grow and change with your experience and education. Be prepared to use a team of experienced professionals, accountants, bankers, insurance agents, successful mentors, broker etc. you will need this team to help you achieve your financial goals.

Investor Lesson 8 ~ Decide Now What You Want to Be When You Grow Up – Do you want to be secure, comfortable or rich? The truth is you need to be all three. Most people only achieve security and maybe comfort because that’s all they plan for. If you want to be rich you have to plan for all three.

Investor Lesson 9 ~ Each Plan Has A Price -What is the difference between been secure, been comfortable and been rich? The difference is price, the difference between a plan to be rich compared to the others is vast. At first glance it appears price is measured in money but it is actually measured in time, a more precious asset. Most people are not willing to invest the time, they wish to get rich quick and are in such a hurry to make money they lose both time and money. Are you willing to invest the time ?

Investor Lesson 10 ~ Why Investing Isn’t Risky – Anyone who has ever said investing IS risky has either not been trained to be an investor, lacks control or is out of control as an investor or is someone who invest from the outside then the inside. To be rich, you have to be closer to the inside than the professional to whom most people entrust their money.

Investor Lesson 11 ~ On Which Side Of The Table Do You Want To Sit? – The poor man says work hard and save money, the rich man says working hard and saving money are important if you want to be secure and comfortable. The government taxes people when they save, when they spend and when they die. If you want to be rich you will need greater financial sophistication than merely working hard and saving money. When a person shifts to the other side, their point of view of the world also shifts.

Investor Lesson 12 ~ The Basic Rules Of Investing – Investing is comprised of seven rules. The first basic rule of investing is to know what income you are for, either earned (work, job etc.), portfolio (stocks, bonds, mutual funds etc.) or passive (real estate,patent royalties, license agreements etc.). The second basic rule of investing is to turn your earned income into portfolio income or passive income as efficiently as possible. The third rule of investing is to keep your earned income secure by purchasing by purchasing a security you hope converts your earned income into passive and portfolio income. Many investors cannot distinguish between a security and an asset. Securities are bound up tight by government regulations, this is why the organisation that watches over the world of investing is called the Securities and Exchange Commission (SEC), the title isn’t the Assets and Exchange Commission. Fourth basic rule of investing is, it is the investor that is really the asset or the liability. Fifth basic rule of investing is, a true investor is prepared for whatever happens. A non-investor tries to predict what and when things will happen. Basic rule number six is, if you are prepared (educated and experienced) and you find a good deal, the money will find you or you will find the money. In reality, in the world of investing, regardless of if it is real estate, business, or paper assets, the key is always people, people people. The best real estate in the best location lose money because the wrong people were in charge. Lastly basic rule number seven, It is the ability to to evaluate risk and reward. An investment which brings more risk then reward is not a financially good investment.

Have an Incredible Day

Teresa and the Team at

AustraliaWealth.com.au

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Your Wealth Creation System by Jamie McIntyre

Tuesday, January 19th, 2010

WealthCreation is probably the most important aspect of financial planning. It is through this strategy that we can become financially independent, yet it is an area in which very few people are skilled or familiar with.

The foundation is strategic spending. Most of us know how much we earn each year, but have no idea what we spend the money on. Like every successful business, we need to constantly monitor income and expenditure while also ensuring that we are making a profit.  In other words saving money.

We have created a strategic spending sysytem which has worked successfully for clients for many years now. The idea of strategic spending is to divide your hard earned income into small , easily controlled bundles. The first bundle taken out is  of course savings, a minimum of ten percent of your gross payment, which is transferred monthly into a management account. Don’t leave savings until you pay everything else.

The second bundle goes into the daily living account or your cash account. This account is for daily expenses that are usually paid for with cash, and can be accessed with a atm key card.

The third bundle is your Operations Account. This is for those larger amounts which are usually paid monthly, quarterly or yearly. This account should not be linked to the cash account or accessed by your keycard. This account can be linked to a credit card for use when your monthly expenses are higher than the budgeted amount.

In addition to your savings which go into your Cash Management Trust Account, you should also put in enough funds to cover all your tax deductible expenses. This will save time and effort at tax time.

The system is linked by a transfer account in which your pay goes into. From there periodic payments are set up to transfer funds to all the accounts on the 15th of each month. You should maintain a small float in the Cash Account and the Operations Account. The idea is to manage your finances as you would a business and profit, building up as much as you can in the Cash Management Trust Account and use those funds wisely to create wealth.

Have a day filled with laughter,

Teresa and the Team at

AustraliaWealth.com.au
Reference; Excert from What I Didn-t Learn at School But Wish I Had. by Jamie McIntyre

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What Will Your Legacy Be?

Saturday, January 16th, 2010

If you’re not already successful, or haven’t started on your journey to success, you’re probably sitting there saying to yourself, “I can’t be successful” or “There’s no use doing anything about it because…”, “…I have no money.”, “…I’m not good enough.”, “…I don’t know what to do”,…”I’m too old,” whatever your reason may be, you need to get over it. Just for example, if Beethoven can be born deaf and go on to be one of the world’s greatest composers, and Joni Erickson who is paralysed from the neck down can learn to paint with her mouth and sell her paintings for millions, then I would really like to hear what is stopping you. Any setback can be overcome, you may need to adjust your approach now and again but if you want something bad enough, there is always a way.

People have overcome great odds, a couple I know personally I’d like to mention, Jamie McIntyre in debt and sleeping on a friends couch turned his kife around, he is now a millionaire helping others find financial freedom. Tony Christiansen lost his legs at nine after being run over by a train, he has climbed mountains and successfully run his own business now motivates others by telling his story.

There are so many examples of people overcoming such great odds to achieve things way above what any one would have expected of them. I’m sure you have felt, as I have at times, because of a tragedy or adversity that you just don’t want to get up in the morning or you wonder what is the point of everything we have to do. What makes people overcome such horrendous tragedies as many have and go on and live great lives? Whatever it is we all have it, it is in each of us, it is a gift we have been given and we must use it.

When we die our bodies may be gone but what we have done with our lives the people we have affected those things live on, make a choice to leave a positive legacy behind you. The more challenging your obstacle the greater your gift to the world can be. So please do not give up, do not make excuses, instead make a decision that you will find a way to overcome your burdens and turn them into victories. You may leave something great behind as Beethoven did or you may overcome a smaller challenge as simple as changing the way you think about yourself.

Not every one has huge obstacles in their way some may be much smaller but just as dangerous on your road to success. Maybe you don’t like to speak in public and as this is a requirement in your job you either avoid it or give a poor performance, resulting in being overlooked for promotion. You can make excuses and do nothing to change this fear and thereby remain stuck or you can do something about it. You could consider joining a public speaking group, you could also examine your reason for having such a fear, most likely carried forward from a childhood experience. Work at changing your attitude and approach, learn to laugh at yourself and develop some tactics to help you deal with or overcome your fear.

Whatever you do or whatever your goals they are the tools that will provide you with a rich and rewarding life. When your time comes to leave this world, as it must, leave it with a smile on your face knowing you gave it your all, that you truly did live.

Have an incredible day

Teresa and the Team at

AustraliaWealth.com.au

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