Access advice to guide your steps
I've gone back to reading in my down time, and picked up a favourite book of mine, "The Richest Man of Babylon" George S Clason.
Chapter 3 has the 7 cures for a lean purse, however, I've updated it a little for us.
In the spirit of Arkad, the richest man in Babylon, let’s begin our financial journey. Whether you’re a student, professional, or retiree, allocate at least 10% of your income to savings. Imagine it as collecting ten eggs daily—nine for expenses and one for your future. Even if you’re paying off debt, save consistently.
Differentiate between needs and wants. Create a budget that covers essentials (rent, groceries, bills) and allows for some enjoyment. Aim to spend no more than 90% of your income. Avoid lifestyle inflation—don’t let your spending rise with your earnings.
Invest wisely. Explore opportunities beyond traditional savings accounts. Consider shares, property, or a side hustle. Diversify your investments to grow your wealth over time.
Guard against loss. Ensure proper insurance coverage for your home, car, and health. Avoid risky ventures—no get-rich-quick schemes! If you lose half of your savings, you need to double it to be back square, not losing your wealth is an important step of growing.
Think of your dwelling as an investment. Owning property can provide stability and potential rental income. We have very generous tax legislation to grow wealth through real-estate, and can be a great part of your passive income.
Plan for retirement. Contribute to superannuation, as the Super Guarantee is not enough, and comes with tax advantages, additionally explore additional investment vehicles such as bonds. Super is changing with the introduction of IRIS, can you take advantage of the changes?
Invest in yourself. Upskill, learn, and adapt. Attend workshops, take courses, and network. A growing skill set leads to higher earning capacity. Your capacity to earn is your single most greatest asset at the start of your journey, do what is required to improve your abilities.
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