Have you ever thought about living the life you’ve always dreamed of or how to get there? The truth is that 87% of all Australian couples retire on less than $32,000 a year, giving them $600 a week to spend during retirement. It’s even less for single individuals. That sum of money isn’t enough to provide a comfortable lifestyle. It’s time to realize that you can’t possibly achieve financial success if you’ve never even thought about how to get there. Get started now by asking yourself the following questions.
1. Where are you financially right now?
Think about where you are and the assets that you’ve accumulated. They include savings, property, shares, and other investments.
2. What are your liabilities or debts?
How much bad debt do you actually have? This number includes all of your personal loans, credit card debts, car loans, and IOUs.
3. Do your assets outweigh your liabilities?
This is perhaps the most important issue to consider first before moving on to think about retirement and financial wealth. Do you have more than you owe? What is your household income – how much do you earn a year? Is this a single or combined income? How does that number compare to where you would like to be and what you are trying to achieve?
4. Have you looked into investing as a means of creating wealth in order to achieve the lifestyle that you want now and later on in life?
If you haven’t yet thought about this, it is time to start doing so! Now is the time to learn how to invest so you can begin creating a portfolio filled with the promise of success. If you are already investing, are you ready to continue doing so in order to build up your existing asset base for greater financial wealth?
5. Are you happy where you are financially in life right now?
Does your current financial position bring you contentment? If it does, how content are you, say on a scale of 1 to10? If you can say “10,” then why bother continuing to work? Retire now. If you’re not ready to retire, just keep doing what you’re already involved in because it seems to be working for you. If you have to answer “1,” then it is time to take a long hard look at what you are doing and figure out where you are going wrong.
6. Are you currently living the lifestyle that you want?
Can you do what you want when you want? Can you go out for dinners, go on holidays, or are you limited in what you can do? Do you feel trapped in your current financial position with no way to escape it, improve it, or change it? Is it difficult to talk about money with each other if you are married or living with a significant individual? Are you embarrassed to talk about your financial situation when in a social setting or at work? If it’s a touchy topic, chances are you aren’t really happy about it.
7. Does money bring you happiness or pain?
While many people automatically answer “Both,” the truth is probably closer to one of these answers than the other. Is money something that you are struggling with or is it something that you have plenty of to spend any way you want. And what exactly is money to you – the means to a luxurious lifestyle, a necessity, time and effort, or free time? Wouldn’t it be nice to answer that money means options, freedom, flexibility, fun, and independence? It’s important to understand the role that money plays in your life, because it determines how you live.
8. Have you started thinking about your financial future?
If you haven’t, you certainly aren’t alone. Unfortunately, this is when you don’t want to fall in with the crowd. You want to be ahead of the game in regard to your current and future financial position. If you aren’t in that situation yet, then you need to sit down and crunch a few numbers and set a few steps in place so that you are ready financially for the future as well as to lead the kind of lifestyle that you would like to have right now!
9. Have you met with anyone, a financial adviser or investment guru, to look at your current financial position and what you would need to do to create additional wealth for the future?
Have you mapped out a 10-year plan to put some strategies in place for a long-term goal or figured out what you need to do on a weekly, or even a monthly basis, to save up for your dream lifestyle? If you haven’t, you need to do something about this now, especially if you want to retire with money to spend.
10. Where do you want to be financially in one year, in three years, in five years, and in ten years?
How much money do you want to be earning and to have in assets? Where do you want to live and in what kind of a house? How many businesses do you want to own? What do you want to be doing financially? Visualize it. Capture it in your mind as an image that can push you to create a plan and motivate you to stick with it and achieve the goals that you have set for yourself!
11. Do you know what your ultimate end goal timeframe is – the day you never have to work ever again because you can live off the financial portfolio that you have created for yourself or the assets that you have accumulated?
Do you want to retire at 40, 50, or 60? Do you have a date for quitting your job and doing what you love best, even if it is working in some other industry or for yourself? Setting one can jumpstart your motivation!
12. How much would you like to have available on an annual basis so that you can live out your dreams with the freedom, independence, and flexibility that you have previously determined?
It is time to set long-term goals and work backwards, if need be, to leverage your position so that you can actually achieve the dream lifestyle that you have in mind. How much can you afford to save each week in order to reach your end goals? If the answer is 0, you need to start thinking about a budget that can help you curtail your outgoing expenses in order to create a stream of cash for your goals.
Do It Now!
For some people, financial independence seems to be really simple; but for other individuals, it’s going to take a successful blueprint created from a few important questions that you ask yourself in order to begin taking charge of the financial part of your life. After all, if you neglect your finances for too long and fail to plan ahead, you aren’t going to make any progress whatsoever. It’s time to take control of your financial position now so that you can achieve the financial wealth that you want.