Common people gain wealth every day. Don’t you think it is time to start?
People today have a great desire to be wealthy, but few have a plan to achieve it. The secret to gaining wealth is steady growth. Anyone in Australia can achieve wealth, if they will plan and focus on the goal one day at a time.
We all watch the T.V. programs that show the lives of stars. We see them driving nice cars, living in lavish homes, seemingly on vacation 24/7. But is this reality, possibly for a few. These types of shows sends the mind racing, dreaming of being rich and living that way. What you don’t see is that a lot of the lifestyle that is shown is supported by companies, and not the stars themselves. This is part of the perks, they receive for publicity.
The vast majority of wealthy people do not live this way. To the contrary studies show that most affluent people live below their means, and always have. They opt to save rather than spend. The problem is, no one notices them until they are wealthy. At this point the years of steady savings have started to pay-off, and they can enjoy the money a little. Buy a nicer home, or a nice car. This is when people notice. To them it is a culmination of a lifelong plan, to you it appears to be over night success.
Perhaps, if they would have invited you over for the past fifteen years, to help calculate their budget and plan their spending you would not see it this way. See, unless you win the lottery or inherit a fortune, you will probably never be wealthy. If after reading this article you only remember one thing, remember this next sentence. Wealth does not sneak up on you, you have to sneak up on it.
To be wealthy you need to plan your attack years in advance. Right now there is someone living within a few blocks of you that will one day be wealthy. Right now, you are both in similar circumstances. But as the years pass, they will pull away from the crowd. They are routinely planning for this day as we speak. They are not necessarily planning to be wealthy. They just want to be comfortable, but the strategy is the same.
Here’s an example to show my point. In June 2006, Australians carried an average of $2,656.00 on credit cards. Middle Income Australians earned an average of $53,079.00 per annum. This is debt equivalent to 5% of their yearly earnings. At the same time, High Income Australians earned an average of $120,339.00 per annum. This is debt equivalent to 2% of their yearly earnings.
Wealthy Australians carried 60% less credit card debt than the average Middle Income Australian. This is an astounding difference.
Everyone has heard people say the rich get richer while the poor get poorer. Well, continuing to amass unneeded debt and interest this way helps make this phrase true.
People complain about Governmental policies being in favor of the rich. There is no amount of Governmental policies that can create wealth for the masses. The hard truth is that only one person on earth can do that for you, and it is you.
Now for some good news, once you start to plan, budget, and save it does not take long to reap rewards. I don’t mean being rich, just relaxed. Soon after you make this change you will see that you do not have to worry about the mortgage payment and other bills being paid. Your budget will automatically take care of that. All you have to do is watch it and stay on it.
Over time you will gain the most valuable benefit of wealth, financial peace of mind.
To find out more about our Wealth Creation services contact Baggetta & Co today!
May 17, 2018
May 17, 2018
May 17, 2018
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Paul Baggetta is the Founder & Principal of Baggetta & Co (ABN 68 786 233 813).
Paul Baggetta has been a Taxation Accountant since 1981, a Financial Planner since 1998, and in 1993 qualified as a Real Estate Licensee, holding a Triennial Certificate (currently not trading) and operated his own Real Estate business for property investment clients for over 5 years as a second business.
Financial planning services are provided by Paul Baggetta as an Authorised Representative (No. 261469) of Capstone Financial Planning Pty Ltd. ABN 24 093 733 969. Australian Financial Services License No. 223135.
Taxation & Accounting services are provided by Paul Baggetta as a Registered Tax Agent (No.61487008) and is a Member of SMSF Association, FIPA & NTAA.