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How to become rich on a regular income

How to become rich on a regular income

Showing people on regular incomes how to become rich is my passion!

I’ve seen so many people over the years reach the age of 55 or 60 and then seek out financial advice. It has always pained me to see what might have been, had they got started earlier.

The issue: you don’t know what you don’t know!

Combining sensible strategies with time means you don't necessarily have to earn a lot of money to become wealthy.

Becoming wealthy starts with paying yourself first. It starts with setting aside a portion of every pay cheque for the future.

Then, every time you get a pay rise, increase the amount that you pay yourself first. This protects you from lifestyle creep; the trap of simply spending all of your increased income on increased lifestyle.

No matter how much you earn, it makes sense to save and invest at least a portion of your income EVERY time you get paid. Even if you're only contributing a small percentage of your income, it's better to start small than not start at all.

Which leads us to the idea of investing.

You can do this in two ways… inside or outside super. One is tax-advantaged, the other is not. One thing people often don’t realise is that you can do a combination of the two.  The trick is to make it automatic… make it happen without you thinking and without you having to act.

Often people know they need to be doing something but plan to do it with what’s leftover. Which is more likely to work?

You commit to saving $100 per week and set it up to happen automatically, or

You decide that at the end of the year you will save and invest $5,000?

You know the answer as well as I do and that’s why automating things as much as possible is so important.

Do these two things – saving and investing - consistently over your working life and you will become wealthy!

Need proof?

There is an almost magical force in the universe called compound interest. Compounding supercharges the growth of money because in addition to earning returns on the money you invest, you also earn returns on those returns over time.

And with enough time, small amounts can become huge. If you invest $5,000 a year for 35 years and earn an annual return of 7 percent, for example, you'd have more than $750,000. Over 40 years, with the same annual return of 7 percent, you'd have over $1 million.

Can you see how just about everybody can get rich slowly?

The sooner you start investing, the better off you'll be. My question to you is, when will you get started?

This all sounds simple, but it’s not easy… or everyone would do it.

Just like in sport, when it comes to money, having a coach to guide you to get better and to hold you accountable is going to get results.

It takes a little work, but the results are worth it! You don’t want to wake up in the future upset by the results you didn’t get with the work you didn’t do.

If you’re looking for a coach to help you get financially fit, then I’d love to have a chat.

Cheers,

Daniel

If you’d like to find out more about how INDEPENDENT financial advice could help you manage cash flow, pay off the mortgage faster, get the most out of super and invest wisely, then get in touch on 0411 484 464 or head to wealthtrain.com.au.


Daniel McGregor is the man behind Wealth Train and is a member of the Independent Financial Advisers Association of Australia. This advice may not be suitable to you because it contains general advice which does not take into consideration any of your personal circumstances. All strategies and information provided are general advice only.

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Kate Pulbrook - Walk a mile in these shoes

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Come fly your drone with us!