For some people peace of mind is all about holding a secure job, after all it’s what pays the bills right? For others it’s about having a rewarding career, or to own a business, in order to achieve (and grow) their income – the common motivator in this case is usually to live a better quality lifestyle. The truth is peace of mind comes from assets that make you money in your sleep – whether you work or not. Let me explain…
Most people spend their working life making ends meet, paying bills, and very occasionally taking a holiday – if money allows. There are of course those who stash away cash for their retirement nest egg by investing and/or borrowing to invest.
The Superannuation Guarantee Scheme became compulsory for Australian employees (paid by employers) from 1991. This of course helps, but if you look at the stats most people end up with very little given that the average salary in Australia is ~$80,000 (currently), and the SGC rate is 9.5% of your gross salary (currently).
The truth is that unless you invest in assets with prospects for capital growth (e.g. residential property), and you invest in assets that generate a passive income (e.g. residential property), then you’ll most likely remain a slave to your job for as long as your health allows, and you’l likely retire on a modest annuity from your superannuation or retire on the measly pension the government hands out (…for now).
If you’re standing still, you’re going backwards. To change the direction of your financial path, you need to do things differently. Makes sense doesn’t it?
Here are 7 steps I think you need to take if you want to change your financial path:
Whilst I think each point above is just as important to make a difference, the last point is the most crucial. If you don’t take action, you’ll be standing still or even worse you’ll go backwards.
Remember this, what got you here won’t get you there.
I hope my blog today reminds you of what you already know, or it gives you food for thought in order to set your financial sail on the right path.
Important information: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice.