What’s the number one reason why some people generate wealth, when others find it so hard?!
Research has shown that the key to growing wealth isn’t how much you earn, it’s how well you manage the money you do have*. You could have a great income, but if you’re not financially fit then your cash can get a bit flabby: puffing and panting to keep up with your lifestyle. A great cash flow plan can help you get your money into good shape so it can go further and do more than you thought possible. But like getting physically fit, it’s a journey and you need to have financial fitness as a goal. Only continue reading if you really want to achieve financial fitness and are prepared to put in some work to get there.
What does the research show?
Great, looks like you’re serious about your finances, first let’s look at some hard evidence to show you what you need to do.
A study* on nearly 4,000 homes by two economics professors from Dartmouth and Harvard University found there were huge differences in wealth at every income level. The study found that:
- Income differences explained as little as 5% of wealth dispersion.
- Chance events such as inheritance or unexpected expenses accounted for 4%.
- Investment choices explained about 7%.
The study found the biggest factor in wealth creation was simply how much people chose to save:
the differences in saving choices among households with similar lifetime earnings lead to vastly different levels of asset accumulation.’*venit & wise
‘And that’s it!! Obviously you can become wealthy by having a successful business and/or earning more money in your job. However research has shown that the majority of people generate wealth by managing their cash flow and increasing their savings over time!
Now, we know what you’re probably thinking…..
“That is soooo boring!! You sound like my parents. Where is the exciting secret ingredient to creating wealth?!”
But, what’s the secret silver bullet?
Well the secret is that there is NO SECRET ingredient, other than saving what you can from what you earn. Your grandmother has probably already told you that.
We have clients with 7 figure incomes and our biggest conversations are how to save more and spend less. We also have clients on 5 figure incomes who know how to save and who over time have been able to retire with more than enough. In some cases with over $1Million just by being wise with what they have earned.
We wish it was more exciting than that, however we can’t argue the facts and our work with hundreds of clients across Australia verifies the above study.
Slowly but surely
The way to get and stay healthy isn’t to suddenly exercise furiously and go on a miserable crash diet, it’s about changing your habits so you can enjoy life and stay fit. It’s the same with managing your money: getting into good habits means you can save for things like holidays and enjoy guilt-free spending when you do splash out. There’s no silver bullet.
Making it happen
Just like thinking about getting fit doesn’t make it happen, you have to do the exercise to get results. You also have to do the work to be financially fit….however, it’s not as difficult as it may seem!
Want to get financially fit?
GET THE WORLDS MOST SIMPLE CASH FLOW MANAGEMENT PLAN TODAY.
- A simple 2 page plan to improve your cash flow.
- See exactly what type of bank accounts you should have and how to use them.
If you’re like most people we see, this wouldn’t be the first time you’ve been told to save more money.
However, for many people it’s a struggle just knowing where you money goes, let alone putting enough away to save.
In this very simple 2 page plan you will see how to structure your bank accounts in a way that allows you to start saving money.
Enter your details below to receive your Free Cash Flow Plan Now