Nearly a third of Australians find dealing with money stressful. However if you possess a certain set of characteristics, you may be more likely to become wealthy according to research. This is no matter what your age or salary.
These wealth factors, what are they?
Frugality – or a commitment to saving, spending less and sticking to it
Confidence – in financial management, investing and household leadership
Responsibility – accepting your role in financial outcomes and knowing that luck plays little role
Planning – or setting goals for your financial future
Focus – on seeing tasks through to their completion without being distracted
Social indifference – or not succumbing to social pressure to buy the latest thing
Frugality and social indifference are really important. Remember that Ingvar Kamprad the founder of IKEA until recently drove around in a 1994 Volvo 240 and Warren Buffett owns the cheapest model Cadillac.
What is meant by frugality?
Frugality is actually key. It really means spending below your means. Spending above your means, spending instead of saving for retirement, spending in anticipation of becoming wealthy all makes you a slave to the pay check even with a stellar level of income.
A rule of thumb is that you should be saving $20 out of every $100 you earn.
What about confidence?
Actually, having confidence will help you to live within your means. It also takes confidence to invest properly instead of making investment decisions with your emotions. Leave your investments alone and focus on a long-term investment plan.
Be confident enough to take on responsibility for the outcomes.
How can The Wealth Farmer help you?
Wealthy people don’t count on anyone else to make them rich and they do not blame anyone else if they fall short. They certainly do not count on Governments.
They do however seek advice, knowledge and mentoring so that they can focus on their goals and avoid distractions.
The Wealth Farmer’s job is to help alleviate the stress and worry around money. We educate and coach clients so that they can make informed decisions.
