For most of us, our house is our castle. It’s the place we can do whatever we want, it’s our domain, where we have ultimate responsibility.

We can think of our financial house in the same way. We can do whatever we want with our money but at the same time, we have ultimate responsibility for what the outcomes are.

Building an awesome financial house is really no different to building a physical house.

A well-built financial house starts with strong foundations. That means being in control of your cashflow, reducing debt, having adequate protection in place in case something goes wrong, and having rainy-day money set aside. Strong foundations are what stop your financial house falling down around you in the event of turbulent financial weather. Despite this, most people tend to build their financial house with very weak foundations, possibly with no foundations at all!

I highly recommend pausing for one moment and answering the following question: Is your financial house built, or being built, on strong foundations? If not, how exposed is that leaving you?

None of us would ever remotely consider building a physical house on weak foundations (in fact, I think it would be illegal to do so). Let’s take the same approach with our financial houses.

From there, I see superannuation as the floor of a financial house. Firstly, it’s compulsory, so you can’t avoid having it, and secondly, it should end up being the bedrock of your retirement savings. And, if you manage it well, it will be worth a lot of money later in life! This can easily become wealth-building on autopilot.

Your financial house is made weatherproof with a ceiling of quality investments, extra super contributions, low fees, and possibly even borrowing to invest.

Hopefully, you can visualise in your mind that building a secure, quality financial house involves getting the right building blocks in place. Done right, building your financial house can almost be as simple as putting together Lego blocks.

Earning income, spending, saving, investing, borrowing and protecting. Each one has a place in your financial house, leave one part out and your financial house is going to have some major weaknesses! Get them all in the right proportions and your financial house becomes the tool with which you live the life you want.

I often explain to people that money doesn’t buy stuff, it buys choices. And the ‘style’ of financial house you choose to build is going to determine the kind of life you will have the choice to lead in the future.

If you need to start building your financial house or renovate the one you’re already in, then quality financial advice is the equivalent of a quality architect. Get the right design and you’re on the right track!

Then it’s a matter of using the right financial building products and the right financial ‘tradies’ to get the build done well, on budget and on time.

If you need help with your financial house, give me a call.

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.

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.

Daniel McGregor and Wealth Train are authorised representatives of Independent Financial Advice & Education AFSL 520963