Are you too busy for your own financial success

Tuesday 24 May, 2016

Some say today’s generation of small business owners are the busiest ever.

As well as juggling a busy business, many business owners are also juggling family commitments, community involvement, hobbies and other passions, keeping up with family and friends and trying to keep fit and healthy.

How often do you answer “crazy busy” when someone asks how you are going?

Most people have health, wealth and relationships as their major goals, but ironically these can be the first things to suffer when we get crazy busy.

Let’s talk about financial success for a moment. This can mean different things to different people, so let’s look at a few levels.

First level financial success is having more money coming in than is going out. In other words, we have enough money to get by.

Second level financial success is having enough money coming to live the life we truly want. In other words, not just getting by, but prospering with enough to spend on the nice things, as well as the things that are important to us and our families.

Now the third level of financial success is the same as the second but the income comes from our investments and doesn’t come from a job or a business that we have to work in. We hear a few names for this, financial freedom, financial independence, retirement, wealth, rich etc. Let’s call it financial freedom for now.

This sort of financial freedom takes time to build up and it requires us to take regular smart actions and avoid the big mistakes. A lot of the steps to achieve this are not all that complicated, but when we get busy with life and busy with our businesses it is very easy not to do the things that need to be done.

So let’s take you through a quick personal financial stocktake.

Now for the best results answer these questions truthfully (no delusional financial planning). Answer on a scale of 1 to 10, with 10 being that you have that area totally nailed, and 1 being you have no idea, no confidence or are completely out of control.

1.            How would you rate your overall financial organisation right now? In other words, do you have all your financial stuff completely organised and under control.

2.            Do you have a crystal clear picture of your financial position? Assets, liabilities, income, expenses, superannuation, insurances, taxes, estate etc.

3.            Do you have clearly stated financial goals for things like how much you need to live your ideal life and how much you will need in assets for your financial freedom.

4.            What is your level of confidence that you will comfortably build the wealth you need for financial freedom, and to achieve all your other financial goals?

5.            What is your level of confidence that you have smart strategies in place to:

a.            Build wealth

b.            Save tax

c.             Manage your investments, and

d.            Protect your family from financial disaster in the event of illness, death or the breakdown of your business.

6.            What is your level of confidence that you are taking ALL of the actions you need to achieve financial success?

Now, I am tipping for most of us, we are probably not going to have a lot of 10s, 9s or even 8s. In fact, if you averaged 8 out of 10 or better for all these areas you probably have all or most of these traits.

1.            You have a lot of knowledge across all of the areas that make up personal finances; Investing, superannuation, insurances, taxes, loans, etc.

2.            You have a lot of time to spend making sure you have all these things under control and keep up with all the changes.

3.            You are very organised and have systems and processes in place for your personal finances to make sure nothing falls between the cracks.

Or, you are working with a very good financial adviser who you trust totally and has all of those 3 traits. In either case, congratulations, it’s a good feeling to have and very rare.

For most of us who answer less than 7 for all or most of these questions – what do you do about it.

You basically have three options:

1.            Do nothing, which probably isn’t going to make any of those things better.

2.            Start on a journey of learning all of things you will need to know and putting aside enough time to learn what you need to learn and do what you need to do. This is really hard and could take years IF you stick with it.

3.            Find a really good financial adviser who can help you.

Two steps, either one of which you should do right now.

1.            Give us a call to have a no obligation chat about your own financial position and goals. We can quickly work out if we should sit down and have a more detailed discussion.

2.            Tune in to our upcoming webinar to learn more about real steps you can take to achieve financial success.

Or, are you just too busy ?

About the author.

Rob McGregor has been advising his clients from his Noosa practice for over 16 years, and involved in the money industry for over 30 years. He has won numerous awards, loves what he does and specialises in helping busy business owners and successful professionals build and maintain financial freedom.

Join Rob and CCIQ for a webinar on June 2: Could your business success be your biggest financial risk.

Register here

 

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