As a woman you need to learn how to build your own wealth. And here are three ways to help you get started
Stop your “money drains”.
Money drains sabotage our efforts to accumulate and build wealth. The best way to take control of your wealth is to be aware of where your money is going. I’m not asking you to be perfect, and I don’t want you to get overwhelmed with this, just look where your money is going and figure out what is draining your wallet.
Common money drains include: having more house or car than you can afford, dining out too much, alcohol, cigarettes, fancy coffee drinks, vending machines, excessive shopping, too many paid magazine subscriptions, keeping up with The Joneses, parking or speeding tickets, and anything else that is unnecessary and is keeping you from investing or saving.
Respect your money
You need to show your subconscious mind that you respect money, you are interested in your finances, and you are serious about wealth building.
Keep your wallet neat and organized. Make sure all your paper money is straight, facing the same way, and nicely put in your wallet. Don’t crumple notes and shove them in your pocket or pocketbook.
Organize your bills as you receive them, and file them by due date.
Pay your bills on time.
Have a filing system for all your financial documents and keep it current and organized.
Don’t use credit cards to buy things you don’t need and can’t afford.
Keep your cheque book balanced and don’t float checks.
Always know your net worth (= assets – liabilities).
Get serious about wealth building
Once you get clear, seriously look at where your money is going, and begin to plug your money drains, you should have additional “free” money every month to start wealth building. Here are a few things to consider:
Pay yourself first, and show your subconscious mind that your wealth matters. Determine a set amount (even $5 a week), and have it automatically deposited to your savings account. Don’t touch it, just let it grow.
Automate the payment of your bills as much as possible so you aren’t always focused on or worrying about them.
Focus on eliminating any unsecured debt (i.e. credit card debt). This will give you a great sense of freedom.
Create an emergency fund and add to it gradually (final balance to target should be equal to 6 months of your income).
Look into ways to create more income (i.e. start a business).
Start learning about different investments. Don’t ever invest in something you don’t understand.
The writer is CEO & co-founder of Fortune Wealth Creation Group, an award winning boutique financial planning firm based in Melbourne CBD. You can reach him at rashesh@fortunewealth.com.au
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