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7 KEYS TO FINANCIAL FREEDOM

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1. Have A Very Clear Plan
   Many people spend time doing plans and budgets for their company, but virtually no time doing these things for their own life  - less than 3% of the population, in fact (download budget spreadsheet).

   Have a clear plan to help motivate your reason for financial planning. For example: "I want to retire at the age of 50 with an investment income of $42,000 so that I can..."

2. Bank It Before You Buy It: Emotional Decision
   Australian’s see 1 million advertising messages before the age of 20. These messages condition our thought system into believing what success is. Is having the shiny new BMW successful or does it just make us feel good for a few months? Spending to keep up with the "Jones’s" or to feel emotionally good can be very addictive and is usually very short lived.

   Live within your means – not your dreams. "No interest for 12 months" retail promotions can be a trap, again enticing instant gratification. If you can afford it why not pay for it now? Bank the money before you buy it. Then buy the cheapest product your ego can live with.

3. Spend Less Than You Earn
   I know it sound amazingly simple – but all you have to do is spend less than you make and invest some of what is left over. It may be more productive and easier this way. You don’t necessarily have to make lots of money to be financially independent, because the more you earn the more you are taxed.

4. The Tempting Quick Fix
   Australian’s lost $11 billion from gambling in the last year. Unless you have gambling stocks you are more than likely a loser here. The typical lottery gambler spends $14 weekly on tickets. Rather properly invest $14 weekly and you can be guaranteed of almost $½ million dollars after 40 years. There is no quick fix in long-term wealth – slow and steady wins the race.

   Similarly, with almost 10,000 Australian’s falling prey to various business and investment scams each year it may be worth looking into less "quick fix " options and simply getting some professional advice on building a solid long-term financial plan for the future.

5. Cut Credit Cards
   We are constantly conditioned into the easiness of instant gratification with credit cards – especially in Australia where each Australian currently owes $20,000. Impulse buying is so easy, and is encouraged with credit cards. Use credit cards as a tool, otherwise they can own you.

6. Count Your Cents Not Your Dollars
   Give yourself a weekly budget to work within each week. It can be a trap going back to the ATM machine every few days to take out another $60. Small pain now can save big pain latter.

7. Take Action - What do I do now?
   If you found any of this of interest and can see the value in working out the cost of your ideal lifestyle by developing a budget and cash flow then please email us back at info@lifebydesign.com.au and we will send you a free Excel template cash flow. It will take you about 45 minutes to complete. Then consult at least one financial planner – and you will be on your way...

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