Most start with nothing but a desire to grow wealth. Some start with nothing and become millionaires but most plod along in life, hoping for the best but end up with very little, surviving on the pension.

Do you ever wonder how people get to be wealthy? How can they afford to drive around in the latest BMW, or build an extension on their home or be in a position where they can help their kids buy their first home…

Perhaps you saw your Jim and Jane from next door wheeling their suitcases down the driveway over the weekend and you thought to yourself ‘they’re probably heading off overseas again for another luxury escape. How on earth can they afford it?

Most End Up Surviving On The Pension

There are many Australian’s who seem intelligent, often with a higher education, working for big and successful companies who work hard their whole, entire lives yet still end up living without choices.

They follow the typical ‘success formula’ of going to school to get good grades, getting a job in a good company and attempt to work their way up, improving their status and pay packet along the way.

Sadly, the majority of these people end up dead, dead broke, on the pension or need family to support them.

4% of the population become what we call ‘financially independent’ which means that at age 65 they are able to live a comfortable lifestyle after having stopped working. Now comfortable means different things to different people and this group certainly are not wealthy. It simply means they have enough money coming in to support them – around $42,000 per year.

1% of the population at age 65 will become what we call ‘wealthy’. The Australian Bureau of Statistics classifies ‘wealthy’ as having a net worth in excess of $1 million dollars. Many years ago a million dollars used to be quite a lot of money. By today’s standards it’s actually not that much.

The other 95% of the populationend up on the pension or dead.

Why Most People Fail

Often, it comes down to a number of things – some of which we include below:

  1. They fail to plan and therefore plan to fail
  2. Lack of education
  3. Don’t have a mentor or someone to help
  4. Head in the sand syndrome
  5. Too busy living live and not planning for life
  6. Spend their money rather than invest it
  7. Poor money habits

Often we meet people who want to create something special for themselves but have tried to go it alone which hasn’t then given them the desired results. 

TIP:Discover when you can get your super or apply for the age pension Here.

What  To Do To Ensure Financial Success

 There are many things you can do, right now, to create an immediate impact on how you will be able to retire.

  1. Be conscious of your money| Work with a money planner,a very important tool to use on your journey to financial security as it is one of the most basic and effective tools for managing your money. Find out more.
  2. Understand the simple rules of acquisition| We’re big fans of the book The Richest Man in Babylon by George S Clason. Countless readers have been helped by the famous Babylonian parable, hailed as the greatest of all inspirational works on the subject of thrift, financial planning, and personal wealth. And we love it.Find out more.
  3. Retrain Your Brain| According to the latest brain research, our ability to manage our thoughts, emotions and behaviours is a learned ability that anyone can master.  Our success in no longer determined by our current results, circumstance or even genetics which means we have the ability to shape our results by learning how to retrain our own brains deliberately.  Powerful stuff! Find out more.

We only know what we know and we usually learn things from our parents, who were taught by their parents. If you look at how those two generations are retiring, are they the people we should be learning our financial literacy from? Perhaps not.

If you need a hand or would like to chat simply pick up the phone or connect with us on email at hello@wealthology.com.au