The average Australian has been taught to invest in superannuation or set aside 10% of their income to build a nest egg for retirement. That’s fine if your goal is to be a low or middle income earner but, it will never, ever make you wealthy! The concept of building a ‘nest-egg’ is inherently flawed. Your goal shouldn’t be to accumulate a lump sum to slowly spend during your retirement and hoping you don’t outlive your money running out. Rather, you should build an asset base that generates ongoing passive income – a self-perpetuating ‘money machine’ – like a portfolio of income producing residential properties.
Most of us have never been taught how to invest, let alone save. Younger generations are living differently to their parents: they’re marrying later, spending more on ‘lifestyle’ and fearlessly taking on credit card debt. As a result, many people have significant earning power but few assets. Inevitably a time comes when you need to manage your finances better. To be financially independent you need to build an asset base that generates passive residual income.
The subject of ‘how to build wealth’ is generally not taught in our schools. Our education system teaches us the fundamental skills needed to earn money, but ignores the skills involved in managing and investing the money we get. What little knowledge we have gotten is more centred on how to budget and save money, rather than how to invest and make money. In other words, have you working harder to create wealth rather than you working smarter, and your money working harder.
Knowledge, therefore, takes the worry out of investing. Knowledge gives you confidence and arms you with the information you need to evaluate each step in your wealth building plan. Knowledge maximises gains and minimises risks. Perhaps if the word Pension was linked to the word Poverty more often people might desire more the need to learn about investing and using other people’s money to do so.
People generally fall into three categories:
1. those who make things happen,
2. those who watch things happen and,
3. those who wonder what happened.
Well said Anthony
Start thinking & doing something about your future today. Start your own smsf, have yourself & partner & working aged kids be part of the fund. Contribute $25k pa each to the fund or your maximum allowable (if work contributes 9%) – so you have $100k + in no time. Use these funds to start investing at a maximum of 15% tax and tax-free later on. Put your $25k x 4 in now, transfer your existing super & bump it again in July with another $100k. Then go for it! Super may not be for everyone but it is a wealth-builder if you don’t need access to your money, it is for retirement after all.
Reasearch, Learn, Research some more then nike!
RICH DAD, POOR DAD Correct Knowledge is the KEY and the DIFFERENCE between the two.
Kudos!
You don't have to be wealthy to invest,
but you have to invest to become wealthy.
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