Bettering – The 5-Step Ladder to Financial Greatness

3 November 2024, 5:30 am

Sometimes your desired goals can seem so far away, and you may get disheartened that you aren’t making any progress.

The solution for many people, and one which we have found to be highly successful, is to break the problem down into smaller bite sized actions and shorter timeframes.

In this article, we’ll detail the approach to achieving financial greatness in five concise steps.

Much like you’d climb a ladder, take one step at a time and you’ll find yourself moving successfully towards your goals and being able to measure your progress.

We call it ‘bettering’.

You can book a complimentary review today via the below link and select a day & time that is convenient for you and we will spend some time talking about these five steps.

1. Knowledge

Having a thorough understanding of your current financial situation is the first step towards achieving your desired goals.

Everyone is in a particular financial position and are heading in a certain direction. The important thing is confront looking at and knowing your position precisely so you can confidently start taking the required steps to meet your objectives.

This will require you to identify the value of your assets – such as houses, shares, cash and other investments. You’ll also need to pull together a comprehensive list of all the liabilities you have such as mortgage, personal loans, credit cards, car leases and other liabilities.

Next, having a clear picture of your income – which will probably be quite simple – and your expenses – which can often less clear.

It is super important to be very specific with the figures for each of these areas. It is never wise to approximate these things, as you won’t have a clear and honest picture and will start off on the wrong foot. It is best to look at precisely what you have spent money on over the past year to give you an indication of where your money is spent.

A great example of hidden expenses can be subscriptions to streaming services or other applications. Often you get no notice from these companies that your subscriptions are about to renew, and the prices are always going up. Irregular things like car registration and annual insurance can also be hidden from you on a day-to-day basis. Laying your expenditure out in detail ensures you are less likely to be taken by surprise from ‘unexpected’ expenses.

2. Boundaries

All big dreams require an amount of discipline to achieve. It is easy to say no when you have a bigger goal in mind.

Athletes training for the Olympics give up bad food or alcohol.

Parents who want their kids to have great education may give up on some personal expenses to funnel money to this goal.

You have to instill financial discipline if you want to achieve financial greatness.

The short-term sugar hit of a new car, or new toy, or bigger flat screen TV can be tough to give up in search of paying off the mortgage faster or saving for an investment property.

Nonetheless, this is what most people have to do to get ahead.

It doesn’t mean giving up all the fun in your life, but it may mean adjusting your priorities and ensuring you stick to the commitments you make to yourself and your money.

We recommend you set clear guidelines on spending, saving, and investing. It is also vital that these guidelines are set and agreed to by any partner or family member who has influence on where your family’s money is spent.

3. Policy

Once the boundaries are set, you can also use a tool called Policy to establish the rules for how you are going to manage your money.

A policy is like the guideposts on the side of a road, they ensure you keep your car in your lane.

The same applies to managing money and achieving financial greatness.

You should consider and put in place policy on budgeting, savings targets, debt repayment and other investment decisions to keep you on the straight and narrow.

Policy is particularly important when you want good clear communication and alignment with other household members so everyone is working towards common financial goals.

4. Measurement

To avoid getting disheartened along the way, you can use milestones and targets to motivate yourself and to make the journey fun.

If you don’t have something to measure, you will be in mystery about your progress and you may make mistakes and hold your progress back.

We highly recommend you track things like income, expenses, savings, and investments.

It will help keep your accountable and allow you to make adjustments along the way.

It also helps identify areas for improvement, celebrate milestones, and make informed decisions about your financial future.

5. Demand

This is an interesting and rarely discussed concept. The fact is that you have to put a demand on your money to make it work for you.

A bit like demanding more of yourself in running a race, or playing a sport, or any other self-improvement, you can put positive pressure on your money to perform.

If you are constantly striving for improvement and seeking opportunities to growth, you are in charge of your future success, instead of letting the market, or conditions control how your money performs.

More demand on yourself might include striving for an improved income, growing your business, reducing your costs, or changing investments to get a higher return. Even actions like regular reviews of the rental income you charge on an investment can make a significant difference to your outcomes.

Having a proactive rather than reactive mindset towards your money and finances can lead to greater financial success.

Get help with starting your journey to financial greatness. Book a complimentary review today with a Finwell Group expert via the below link and select a day & time that is convenient for you.

Alternatively, you can call Finwell Group on (03) 9017 3235 or email better@finwellgroup.com.au

You’ve got nothing to lose, and everything to gain.

This complimentary appointment offer is for a limited time only. Take the first step TODAY on the ladder to financial greatness.

The information in this article is general in nature and does not take your specific needs or circumstances into consideration, so you should look at your own financial position, objectives and requirements and seek financial advice before making any financial decisions.