Seven Steps to Getting Rich

[deborah]

Today's  Fairfax has the following article: http://www.canberratimes.com.au/small-business/startup/seven-steps-to-getting-rich-20140617-3a9ic.html#ixzz34szHEgUG

Seven key strategic behaviours that set apart wealthy Australians from the rest of us.

   

• Spend less than you earn – this sounds obvious but many of us live from pay cheque to pay cheque, which indicates it’s a lesson that is quickly forgotten. Save and invest because the law of compound interest will help ensure your nest egg grows quickly. Start as soon as possible because time is your best friend.
• Invest as much as you can in assets whose underlying capital value will grow – remembering income is taxable while capital growth is not.
• Reinvest any capital growth – because standing still will decay your wealth.
• Do not be afraid of debt – leverage accelerates your net worth but keep a suitable buffer for the unexpected.
• Invest in yourself – it pays to broaden your fundamental investment knowledge.
• Have a mentor – a coach will help drive you and keep you focused on your long-term goals.
• Have a team of experts – remember you don’t have to be the smartest person in your team.