CHANGE YOUR RELATIONSHIP WITH MONEY
What rich people do differently with their finances
The rich must be doing something differently to maintain consistent levels of money and abundance in their lives.
For many of us, money comes and goes. Sometimes there are savings in the bank and other times, well, the bills and expenses have the pennies at an all time low.
We first turned to Barbara Turley – the expert investor and wealth strategist behind Energise Wealth – for the practical tips. She is, after all, leading an entire generation of women away from financial stress and overwhelm by reframing our relationship with money!
Don’t shy away from your finances
“Get comfortable learning about money, and the basics about how money works. It’s actually quite simple. Start thinking about things like what interest rate you are earning on your bank savings account. If interest rates are high, it’s a predictor that you could be better leaving money in the bank. If they are low, a higher return could be found in other assets – shares, properties, options further down the risk spectrum.”
Understand the power of compounding
“Basically it means that when money is invested and earning a return ever year, like interest on savings for example, it grows at an ever faster rate the longer you leave it invested. The reason for this is because the return calculated every year includes the return from the year before so you are earning a return on a growing number every year.”
Don’t buy property with your heart!
“People get caught up in the emotion of buying a property, but you need to work with the numbers. Ask yourself why you are buying the property – is it an investment property? Is it because the area is going to boom? Remember, property doesn’t always go up in price, so do your research, stay unemotional and remember that the numbers never lie.”
Grow your business
“The greatest way to create wealth is through business, but to do this you need to be extremely strategic and have a scalable business model…. That means working on the business rather than in the business. It’s not a true business if you are working in the business all the time. If you want to reduce your working hours, you need to think about every process that you have in the business – every activity, and what can you streamline, automate or delegate, or all three, otherwise you will never grow it.”
Don’t delay your retirement plans
“Instead of thinking about retirement, think about super as your investment fund… Just because you can’t use that money now, doesn’t mean you can’t learn about investing and putting that money to work. The earlier you get interested in it, the quicker you’ll become financially free.”
We then looked to Brendon Burchard, one of the most watched, quoted, and followed personal development trainers in the world, for the behavioural and emotional draw cards. By 32, Brendon had become a #1 bestselling author, an early pioneer in the online education space, a multimillionaire and widely followed video blogger. He obviously knows a thing or two!
Begin with yourself not your bank account
“If your self-worth is low, your value in the marketplace will always be as low. If you don’t value yourself no one else is going to value you.”
Add so much value
“Go add so much value that you can’t help but get paid for it. You can’t make money if you don’t have anything to sell.”
“You have to be obsessed with serving. You have to be obsessed with contributing more than anybody else. You have to bring more ideas to the table.”
Get serious about tomorrow
“You want to make more money? Get serious about tomorrow. Value that day. Ask how you can add more value into the day. Really work the day, and as you do that over and over again, you ask… How can I serve? How can I contribute? How can I take it to the next level? You do that long enough and the breakthrough happens. The magic happens. And the money takes care of itself.”
What tips would add to the list? Tell us in the comments below!