21/09/2020
Money rules to remember if financial freedom is your goal: 💸
1️⃣ You won’t get rich from a salary alone - The average millionaire has 7 streams of income, invest to create passive income!
2️⃣ Inflation steals your savings and wealth - In Ireland a basket of goods and services worth €100 in Jan 2018 would have cost €100.70 in Jan 2019 (check out the inflation calculator on CSO.ie to see for yourself). You can typically earn a greater return for your lump sum by investing in a fund rather than a cash deposit account.
3️⃣ Buy assets, not liabilities - In simple terms assets are things you own which you can turn into cash (eg. a house, rental property, stocks, investment funds, etc.). Liabilities are amounts you owe to others (eg. rent, student loans, credit card debt etc.)
4️⃣ Never spend more than you make - Save up to buy the things you want, avoid borrowing wherever possible. Spending less than you earn is the most effective way to increase your bank balance. Cut down on unnecessary expenses and “luxury” purchases to build wealth.
If it’s going to leave you “broke” for the rest of the week/month then you can’t afford it.
5️⃣ Always pay yourself first - When creating a budget always take into consideration what you need as personal spending money. If you are a business owner never forget to pay yourself a salary. You will end up using credit cards/loans if there is nothing left for yourself.
6️⃣ Use compound interest, money makes money - Reinvest the interest you earn on your initial investment rather than spending it. This is the quickest way to increase your return on investment.
🙋🏼♂️Talk to me today to discuss the best financial options for your personal financial situation!
