Do you know what the number one skill is to help you earn more money?

Invest in yourself.

A lot of people do not invest in themselves. Once they finish school, Tafe or university their learning stops.

When was the last time you read a self-improvement book? I have asked a lot of friends this question and the answer is generally never.

Your success is determined by how much you invest in yourself.

One thing that I am passionate about is self-learning. I have never stopped learning even after university. I set a goal every month to read 3 self-improvement books. Books on goal setting, people skills, finance, communication.  I attend courses, I watch webinars. Anything that I can get my hands on.

I suggest try and read at least 1 book a month. Below is a list of some of my favourite books

Invest in yourself and I promise, your wealth will grow as well.

I was asked a great question last week from a client. “What financial advice would you give my 18 year who has just started his first full time job?”

It really got me thinking. What would I tell my 18-year-old self about money.

Below are my 3 money lessons:

  1. Start investing now.

Don't wait until you're in your 20s or 30s or 40s or 50s. Start now because the longer your money is invested the better it is for you. It’s time in the market not timing the market that will make you wealthy.

2. Buy as many assets as you can.

My first major purchase was a car just like most 18-year-olds. Unfortunately a car costs you money, it's a liability. A car will never make you money. Focus on buying assets that generate money such as shares and property. Then allow your investment returns to buy the car for you.

3. Take more risk.

Most 18-year-olds live with their parents which means they can save a lot. The money is sitting in the bank account not earning a lot. Sitting there until they figure out what to do with it. Figuring out what to do may take months if not years. All that time, your money is not earning anything for you. Take risks and do something with the money. Always ask yourself how can I grow my $1. If it doesn’t work out, you have time on your hands. Take the risk.

By following the above I promise your future self will thank you.

If you want to create wealth this year then stop this one habit.

Stop increasing your spending when your income increases.

The above habit will make you broke!

When people receive a raise or a bonus they automatically go out and buy that expensive item they have always wanted. Whether that’s a new car, a new watch, new clothes, a bigger house. By doing this you will always live paycheck to paycheck.  

Just because you now earn a higher income does not mean you have to increase your expenses. Just because you can now afford to buy a bigger house does not mean you have to buy that house!

To create wealth always look for ways to reduce your expenses. Make sure your income is always greater than your expenses.

When was the last time you did a budget? A budget is a great way to help you reduce your expenses.

A budget can be a daunting process even embarrassing at times because you will finally know where all your money is going. When I talk budgets to clients I get them to do the following:

  1. Make a list of all their expenses. Categorise as many expense items as possible. Be very descriptive.
  2. Go through the list and write down how much you have spent on that item last month. If you don’t know look at your bank statements.
  3. Look at each expense item and determine how you can reduce that expense.
  4. Stick to the new budget

I personally like daily budgets. Where everyday you look at how much you spent and compare it to your monthly budget. I highly recommend!

By sticking to your budget, you will soon notice your bank account increasing. How exciting!  

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