The financial six pack cannot be put on display.
More often than not those that appear to have what society deems to be a 'financial six pack' i.e. a mansion of a house and a European luxury car or two in the driveway actually are financially unfit! They're struggling to make ends meet to maintain this lifestyle.
The REAL financial six pack belongs to the man that owns his car and property outright while having enough cash stashed away or invested to give his boss a big F.U. should he lose his job or decide to quit.
3. Automation Is Key (Not Budgeting!)
99% of personal finance and investing books preach a strict budget, the type of budget that has you entering every miniscule purchase you make into a complex spreadsheet riddled with formulas...
This is not the path to financial success.
Automation is the key to financial success.
Instead of having your paycheck land in your one single bank account that requires you to execute your iron will-power to avoid buying that morning coffee that has now become off-limits you're going to benefit far more from having 'buckets'.
As money comes in it should automatically be dispersed into a series of 'buckets' (separate accounts).
4. The #1 Misconception When It Comes To Buying An Investment Property
It's true, real estate investing has made many-a-millionaire... but there's a big misconception (that seems extremely obvious) that most don't pay any attention to.
Buying an investment property for $250,000 and selling it for $350,000 only 3 years later is great, that's $100,000 above the price of purchase! But that's not taking into account the outgoings along the way such as...
The $50,000 you spent on renovations...
The $500 a month the rent was falling short of the mortgage (negative gearing) totaling $18,000...
The fees owed to the real estate agent and to close the deal.. ($5000~)...
Taking the above into account that $100,000 gain can very quickly dwindle down to a $27,000 gain!
5. Plant & Grow
When it comes to building wealth via compound interest time is your biggest ally.
“The magic of compound interest – interest on principle and interest, not just simple interest on principle. The eighth wonder of the world.”
Compound interest works wonders, the power of a regular investment and time build many, many fortunes.
For example, $100 invested each week for 20 years with a 8% return will leave you with $256,999.19.
This technique is always overlooked because it’s not flashy, it doesn’t involve picking a lucrative penny stock and taking a roll of the dice, hoping you get 10x back on your investment. Investing 10% is simple and it works long term.